SAP01 SAP Overview
Date Training Center Instructors Education Website
Participant Handbook Course Version: 2006 Q2 Course Duration: 3 Day(s) Material Number: 50079723
An SAP course - use it to learn, reference it for work
Copyright Copyright © 2006 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.
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About This Handbook This handbook is intended to complement the instructor-led presentation of this course, and serve as a source of reference. It is not suitable for self-study.
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Icons in Body Text The following icons are used in this handbook. Icon
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Contents Course Overview ......................................................... vii Course Goals ...........................................................vii Course Objectives .....................................................vii
Unit 1: Introduction........................................................ 1 SAP: The Company ....................................................2 Product Overview .................................................... 15
Unit 2: Navigation........................................................ 39 Logging On to a SAP System ....................................... 40 Navigating in the SAP System ...................................... 49 Using Help and Personalizing Your User Interface ............... 71
Unit 3: Systemwide Concepts ........................................ 91 System-Wide Concepts .............................................. 92
Unit 4: Logistics ........................................................ 125 Logistics Overview ...................................................127 Sales Order Management ..........................................131 Customer Relationship Management .............................155 Production ............................................................171 Supply Chain Management ........................................204 Procurement .........................................................215 Supplier Relationship Management ..............................235 Additional Processes and Product Lifecycle Management ....245
Unit 5: Financials ....................................................... 285 Financials ............................................................286
Unit 6: Human Capital Management ............................... 325 Human Capital Management .......................................326
Unit 7: Analytics and Strategic Planning .......................... 355 Reporting, Analytics, and Strategic Planning.....................356
Unit 8: SAP NetWeaver ............................................... 397 SAP NetWeaver: Overview.........................................398 People Integration ................................................... 411
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Information Integration ..............................................425 Process Integration .................................................435
Unit 9: Customer Service Network ................................. 447 SAP Services .........................................................448
Index ....................................................................... 473
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Course Overview SAP01 is the prerequisite course for all other SAP courses. SAP01 is designed to provide the participant with baseline knowledge of SAP solutions, applications, components, and terminology. Because this is an overview course the details of the SAP applications and components are left to subsequent courses.
Target Audience This course is intended for the following audiences: • •
Project team members involved in organizing and planning a SAP implementation Any SAP beginner interested in acquiring a basic overview of SAP solutions and applications components
Course Prerequisites Required Knowledge •
Working knowledge of Microsoft Office and Internet browsers
Recommended Knowledge •
Working knowledge of business processes
Course Goals This course will prepare you to: • • •
Explain the terminology used by SAP Describe the concept behind SAP's business solutions Develop the baseline SAP knowledge necessary for participation in more detailed SAP courses
Course Objectives After completing this course, you will be able to: • • •
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Identify the range of SAP solutions Participate in more detailed SAP classes Effectively use SAP terminology
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SAP Software Component Information The information in this course pertains to the following SAP Software Components and releases:
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Unit 1 Introduction Unit Overview This unit will give you an overview of SAP as a company and will discuss the products and applications offered by SAP.
Unit Objectives After completing this unit, you will be able to: • • • • •
Discuss SAP’s milestones and history Explain SAP’s product offerings Name the central SAP applications Explain the concept and history of an ERP system Explain the different between an application and a component
Unit Contents Lesson: SAP: The Company ....................................................2 Lesson: Product Overview ..................................................... 15
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Lesson: SAP: The Company Lesson Overview In this lesson we will highlight SAP's history and milestones as a company.
Lesson Objectives After completing this lesson, you will be able to: •
Discuss SAP’s milestones and history
Business Example You are interested in SAP's company history.
SAP's Company History 1972: Five former IBM employees – Hasso Plattner, Dietmar Hopp, Claus Wellenreuther, Klaus Tschira, and Hans-Werner Hektor – launch a company called SAP (Systems Analysis and Program Development). Their vision: to develop standard application software for real-time business processing. Still a private corporation, the company is headquartered in Weinheim, Germany, with its main office in nearby Mannheim; however, the five company founders are most often found at their customers's computer centers, including ICI in Östringen. The first software programs were written primarily at night and on weekends. At the end of the first business year, SAP already had nine employees and a turnover of DM 620,000. 1973: The first financial accounting software is completed, the RF system. This forms the basis for the continuous development of other software components in what came to be known as the R/1 system. New customers from the local region implement SAP software, including the cigarette manufacturer Rothändle in Lahr and the pharmaceutical company Knoll in Ludwigshafen. These new customer use IBM computers and the DOS operating system. 1974: SAP demonstrates its flexibility for the first time. Within eight weeks, the RF system is converted from DOS to OS. There are already 40 companies on the reference list. 1976: SAP GmbH Systeme, Anwendungen und Produkte in der Datenverarbeitung (Systems, Applications, and Products in Data Processing) is set up as an auxiliary sales and marketing firm. Five years later in 1981, the private corporation established in 1972 (Systems Analysis and Program Development) dissolved, and its rights are transferred to SAP GmbH, giving the company its current name (Systems, Applications, and Products in Data Processing). SAP now has 25 employees and a turnover of DM 3.81 million.
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Lesson: SAP: The Company
1977: The company headquarters moves from Weinheim to Walldorf. For the first time, SAP installs its system at customer sites outside Germany; two Austrian companies decide to implement SAP software. The company is reorganized to support active sales and distribution. 1979: SAP starts to use its first own server, a Siemens 7738. Previously, SAP employees carried out all development in the data centers of regional companies, such as ICI, Thermal, Knoll, Grünzwieg+Hartmann, and Freudenberg. SAP's first "development center" is still housed in rented space; however, work is already underway on the first stage of construction for a company headquarters building. Intensive work with IBM's database and dialog control system provides the impetus for a new approach to SAP software. SAP R/2 is brought into the world.
Figure 1: SAP: Founded in 1972 by Five Former IBM Employees
1980: SAP moves into the company's first building on Max-Planck-Strasse in Walldorf's industrial park. The software development area and its 50 computers are now finally under one roof. The new data processing infrastructure is also built. The Siemens 7738, an IBM/370-148, is installed, although this is changed to a higher performance 4341 later in the year. This IBM model has 4 MB of memory. The palette of products is also increased. The RV order processing software is added to the product range.
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1982: SAP celebrates its 10th birthday. Its offices are already too small and the first building extension is built in record time. Over 250 companies in Germany, Austria, and Switzerland work with SAP software. Revenue reaches approximately DM 24 million, and the company has 100 employees. One of the company founders leaves the company. 1984: SAP takes on 48 new employees. This increase in personnel resources is brought about in particular by the further development of SAP's modules (RK, PPS, and RP). SAP (International) AG is founded in Biel, Switzerland. The intention is to deal with foreign markets from this base in Switzerland. SAP has 163 employees and revenues of DM 46 million. 1986: SAP founds its first country subsidiary in Austria. It also opens its first branch office in Ratingen, near Düsseldof, Germany. SAP increases its capital stock from DM 500,000 to DM 5,000,000. The growing number of employees leads to the creation of smaller organizational units headed by department managers. A new financial regulation leads to a flood of orders: approximately 100 new orders are received for SAP's asset accounting software. After three years in development, SAP's new human resources software is made available to customers. The company makes its first appearance at the CeBIT software trade fair in Hanover, Germany. Revenues reach the DM 100 million mark earlier than expected. 1987: Work begins on SAP's training center in Walldorf's industrial park. The first SAP software congress in Karlsruhe is used as a platform for the exchange of information between users and interested parties. The new generation of servers from IBM means that SAP software is now available to midsize companies (annual revenue from DM 30 million to 200 million). SAP Consulting is founded to serve this customer sector. The standardization of software production becomes an incentive for SAP to start developing a new generation of software: SAP R/3. 1988: SAP GmbH becomes SAP AG. In October, 1.2 million shares are listed on the Frankfurt and Stuttgart stock exchanges. SAP's international business grows; country subsidiaries are established in Denmark, Sweden, Italy, and the United States. The international training center is opened in Walldorf. This also incorporates a sport park for SAP's 940 employees. Dow Chemicals becomes SAP's 1000th customer. To meet the requirements of specific industries, SAP begins to develop RIVA, a billing and administration system for utilities. 1990: SAP stock reaches DM 85 million following the issue of preference shares. The increased funds are used to finance increasing investments. DM 110 million is made available for R&D, both for the further development of R/2 and the new development of R/3. SAP now has over 1700 employees and its revenue exceeds DM 500 million. 1991: SAP presents its R/3 system for the first time at the CeBIT in Hannover. The product meets with overwhelming approval due to its client/server concept, uniform appearance of graphical interfaces, consistent use of relational databases, and the ability to run on computers from different providers. Revenues and
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employee numbers continue to rise. At the end of the year, SAP has 2685 employees in Germany and its 14 subsidiaries, and has revenues of DM 707 million. 1992: After successful installation at selected pilot customers, SAP R/3 is released to the general market. This heralds the start of a new stage in SAP's growth. As it celebrates its 20th anniversary, SAP intensifies its partner strategy in accordance with the expected high installation figures for R/3. Independent consulting companies support customers during the installation of R/3. 1995: SAP in Germany increases its sales activities targeted at midsize companies by collaborating with system resellers. The American company Burger King, Inc. is the 1000th Human Resources customer. Microsoft also begins to use SAP. Shortly afterward, the German Manager-Magazin chooses SAP as its company of the year. Deutsche Telekom AG implements R/3; it requires 30,000 R/3 workstations and represents the largest contract in the company's history.
Figure 2: SAP's Continued Growth
1996: SAP and Microsoft present a joint Internet strategy. Coca-Cola, the largest soft drinks manufacturer in the world, decides to implement SAP R/3. A number of SAP customer events set new records. At the European SAPPHIRE '96 in Vienna, 4,300 customers and interested parties take the opportunity to gain information about SAP's products and strategies, and over 8,000 participants visit the American SAPPHIRE. SAP is named company of the year for the third time by Manager-Magazin.
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1997: SAP celebrates its 25th anniversary. Among the guests at the official celebration is the German Chancellor Dr. Helmut Kohl. SAP's earnings before taxes exceeds the DM billion border for the first time. Customers like Daimler-Benz and General Motors decide to implement SAP R/3 and more then two million users worldwide work with SAP products. 1998: Dietmar Hopp and Klaus Tschira, two of the founders of SAP, announce their decision to leave the board of directors; both move into the supervisory board. Dietmar Hopp takes over the presidency. Hasso Plattner and Henning Kagermann are appointed as co-chairman of the board of directors. From August, SAP shares can be bought on the New York Stock Exchange. More than 15,000 participants come to the 10th SAPPHIRE USA in Los Angeles, where the main topic is “EnjoySAP.” In this year, worldwide, 6,500 new employees start at SAP an increase of 50% to the existing workforce. 1999: In May, Co-Chairman and CEO Hasso Plattner announces the mySAP.com strategy, heralding the beginning of a new direction for the company and its product range. mySAP.com connects e-commerce solutions with existing ERP applications using up-to-date Web technology. In the same year, numerous my SAP.com customers are won, among them Hewlett-Packard and the pharmaceutical company Hoechst Marion Roussel. Almost 15% of the revenue of EUR 5.1 billion is used for research and development. 2000: 10 million users, 36,000 installations, 1,000 partners, and 22 industry solutions: SAP is the leading global provider of e-business software solutions that integrate processes within and beyond company boundaries. SAP, with headquarters in Walldorf, Germany, is the third largest independent software provider worldwide. With the continuous extension of the product and services portfolio, SAP changes from a component to a solution provider. Nestlé signs the biggest contract in SAP history up to this point. 2001: The New Economy bubble has burst, but the trust in SAP and its solutions is not broken, the revenue reaches EUR 7.3 billion. By taking over TopTier, SAP extends its solution offering by company portals. 2002: While the success for SAP began with SAP R/2, in 1992 SAP R/3 was responsible for the international breakthrough. The brand SAP represents high quality enterprise software. Shai Agassi becomes member of the board of directors and becomes responsible for new technologies 2003: An era ends. Hasso Plattner, the last of the founders of SAP, leaves the board of directors and is elected head of the supervisory board. In January, SAP announces the solution concept behind mySAP Business Suite. In addition to the name change from mySAP.com to mySAP Business Suite, SAP introduces a new ERP solution: mySAP ERP. With SAP Labs China in Shanghai, SAP opens the ninth development site outside Walldorf. Research centers in India, Japan, Israel, France, Bulgaria, Canada, and the United States contribute expert IT knowledge for SAP.
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Lesson: SAP: The Company
2004: Enterprise Services Architecture delivers the first version of SAP NetWeaver 04. The resonance from the new integration and application platform is overwhelming. By the end of 2004 the new product has more than 1000 customers. In total, more then 24,000 customers in over 120 countries run 84,000 installations of SAP Software. SAP announces the future of Enterprise Services Architecture. It is planned that by mid-year all enterprise applications of SAP will be service-based and offer the customer the utmost flexibility.
Branch Offices and Subsidiaries of SAP AG SAP has a network of development centers, training centers, and service subsidiaries. For example, there are development centers (the SAP Labs) in Palo Alto (U.S.), Sophia Antipolis (France), Bangalore (India), and Tokyo (Japan) and other countries. SAP has local subsidiaries in more then 50 countries that are responsible for sales, consulting, training, and services. There are a number of training centers in the United States: Newton Square (Philadelphia), Atlanta, San Francisco, and Dallas, just to name a few. In Germany, there are training and consulting centers in Walldorf (Baden), Berlin, Hamburg, and Ratingen (Düsseldorf).
Figure 3: Branch Offices and Subsidiaries
SAP Hosting AG & Co. KG, a wholly owned subsidiary of SAP AG, operates on a global scale, and is based in St. Leon-Rot, Germany. It also has branch offices in Walldorf, Philadelphia, Palo Alto, Tokyo, Sydney, Singapore, and Bangalore. SAP Hosting offers comprehensive hosting services that enable companies to access the most up-to-date SAP solutions quickly and effectively. The services are
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optimally tailored to the requirements of mySAP Business Suite customers and include evaluation hosting, implementation hosting, application hosting, remote application operations, application management, and hosted learning. SAP Manage provides SAP Business One, a product developed for small and midsize businesses (SMBs). SAP Manage also markets and supports the product in Israel. Steeb is Germany's leading provider of SAP systems for midsize businesses. It offers high-performance ERP, e-business, and industry-specific solutions to prepare companies for future challenges. Steeb has been involved with midsize companies since 1974 and offers complete solutions for both SAP systems and its own product, SC/400. The complete program offered includes both software products and the corresponding services (consulting, implementation, support), as well as hardware and networks. Steeb's industry focus lies in the manufacturing industry, wholesale trade, and the service industry. Steeb's advanced solutions (as//) series provides preconfigured SAP solutions for automobile suppliers, machine and equipment manufacturers, and configure-to-order manufacturers in the metal, wood, and plastic industries.
SAP's Employees SAP's distinctive atmosphere hits you the moment you arrive. Applicants that visit SAP for the first time soon see why the company is so popular. The people here are relaxed and friendly, and the energy in the corridors makes you feel that you have entered a university campus.
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Figure 4: SAP Employees
An Exemplary Corporate Culture New employees are introduced to the SAP world through special orientation events, trainee programs, and a mentoring concept that ensures each employee has practical guidance during this time. Since a team mentality is highly valued at SAP, all employees can rely entirely on their colleagues. New employees, in particular, can benefit from the tips and information provided by more experienced colleagues. Achievement Orientation, Creativity, and Innovation The SAP culture offers a large amount of personal freedom. This freedom motivates and inspires employees to develop and realize their ideas. Creative and innovative concepts are always welcome within the team and new ideas are supported. This backing encourages every employee and increases productivity both within the team and beyond departmental boundaries. The lack of bureaucratic red tape and hierarchical restrictions allows information to quickly get to where it needs to be.
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Training Through Personal Development SAP employees know they need to be able to react flexibly to changes, and their knowledge always has to be up to date. Personal initiative is therefore taken for granted, as is acting responsibly as a representative of the company. This mindset is characteristic of SAP employees. The SAP culture also means that flexible work times are utilized to the best possible advantage and accepting responsibility at an early stage is seen as an incentive to perform.
Reference Customers and Partners Reference customers are customers who have implemented SAP solutions successfully and are now prepared to pass on their experience of the implementation project and production operation. This exchange of information takes place through visits to reference customers, telephone calls, presentations, and interviews.
Figure 5: Reference Customers and Partners
The collaboration between SAP and providers of associated software ensures that SAP's business solutions and other application systems can communicate smoothly. SAP's software partner program provides software providers with standard, defined interfaces. These interfaces can be used to integrate additional products seamlessly into SAP solutions.
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Lesson: SAP: The Company
Service partners support our customers during the selection, implementation, and operative use of SAP products. These partners generally have many years of SAP experience and belong to the SAP Alliance Partner Service and SAP Partner Service. Partner companies can take part in a qualification process to prove their expertise in certain SAP products or solutions, which results in them being awarded Special Expertise Partner (SEP) status.
Social Engagement As the leading global provider of enterprise software, SAP has a responsibility to ensure that its business processes are smooth and transparent. However, SAP does not just have responsibilities to its customers and partners, but also to society in general. For this reason, social engagement is an important component of SAP's corporate strategy.
Figure 6: SAP's Social Engagement
Corporate citizenship SAP would like to play its part in the creation of a productive and transparent environment that is of benefit to everyone. SAP promotes partnerships and cooperation with all social organizations that also respect this goal, and is actively engaged in social, scientific, and cultural activities.
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Regional engagement "Promote development - Seize future opportunities through innovation." Under this motto, SAP supports organizations and institutes in the local area of its branch offices. Government relations We take seriously our responsibilities as a competent partner and adviser, as a thought leader, and development leader. SAP therefore supports national and international programs that are customer-friendly, fair, reliable, and based on a market economy. Sport sponsorship Speed, precision, and tangible results are reasons behind SAP's global leadership as a provider of enterprise software. Therefore, SAP supports competitive sporting events and the desire to be the best in a given discipline.
Internet Portal Most of the information in this lesson is taken from SAP's Internet portal. For more information, visit www.sap.com. You can find information about the company and its products, services, and partners.
Figure 7: www.sap.com
The menu path within the portal is easy to follow. If you cannot find information directly from the selection menu, you can use the search function.
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Many customers also want to receive local offers and information in their own language. Customers can choose from a number of country-specific SAP portals. Information can be downloaded from a number of areas within the portal. Product descriptions can be downloaded free of charge as a “solution in detail” or “white paper.” The Education area provides information about training courses offered by SAP and the current training catalog. You can display a course description for courses you would be interested in taking. If you already have a customer number, you can also book the course online.
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Lesson Summary You should now be able to: • Discuss SAP’s milestones and history
Related Information For more information about SAP partner services, visit www.sap.com. From the navigation menu, choose Partners. For more information, access the Internet sites www.sap.com → Our Company or www.sap.com → Communities.
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Lesson: Product Overview
Lesson: Product Overview Lesson Overview In this lesson, you will learn that SAP offers a number of products for a wide variety of companies and different solutions for companies of varying sizes.
Lesson Objectives After completing this lesson, you will be able to: • • • •
Explain SAP’s product offerings Name the central SAP applications Explain the concept and history of an ERP system Explain the different between an application and a component
Business Example You want to introduce new software into your company and therefore want to gain information about the solutions and products offered by SAP.
Products History of Enterprise Resource Planning (ERP) Systems In the 1970s, the concept of an enterprise resource planning (ERP) system did not exist. With its R/1 system, SAP developed a software product that handled process data in real time and saved it to a central database. This meant that companies could access their own data quickly and have a high level of control and transparency. In the 1980s, these systems came to be known as standard ERP systems. Since SAP had broken new ground in this area, it became the market leader. Integrated processes led to increased efficiency and reduced reaction time to unexpected events.
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Figure 8: History of ERP Systems
In the 1990s, the Internet began to grow rapidly. New companies developed new applications for the Internet and the “new economy” was born. These firms became known as “dotcom” companies. They often had a small number of employees and had an Internet presence only. The market changed due to the growth of the Internet. New customer groups were defined and new ways of trading were discovered. Companies began to engage each other directly. As a result, business processes were defined that stretched across company boundaries. Planning data from business partners was used to optimize companies' supply chains. Sales orders were not only entered directly in the ERP system, but also in the field by field service employees using mobile devices. These new functions led to the development of new products. Such “new dimension products” led to an enhancement of ERP functions. SAP developed systems for Internet purchasing (SAP Enterprise Buyer), customer service (SAP Customer Relationship Management), and comprehensive planning functions (SAP Advanced Planning and Optimization). Irrespective of the Internet, comprehensive accounting tools had also become necessary for companies' financial data. Data was no longer simply stored in a database, as was the case in an ERP system. In response to this, SAP developed SAP Strategic Enterprise Management and the SAP Business Information Warehouse. At the beginning of 2003, SAP redefined the concept of an ERP system. It is no longer a system with a database; instead, it is a combination of products covering basic processes such as purchasing, sales, and production. In the areas of human resources, accounting, and basis technology, it corresponds to the enhanced solutions of the new dimension products. This mySAP ERP solution is compatible with additional components, enabling business processes to be defined on a cross-company level.
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Lesson: Product Overview
Product Overview SAP offers a large palette of products for companies of all sizes. SAP provides scalable products that can be adjusted to the size and constantly changing processes of a company. mySAP Business Suite is a comprehensive family of business applications that allow companies to manage their entire value chain. The business applications provide users with consistent results throughout the entire company network and give your company the flexibility needed in today's dynamic market situations. It consists of a number of different products that enable cross-company processes. mySAP Business Suite offers a flexible software solution for larger companies that have a large number of users and processes that are constantly changing.
Figure 9: Different Sizes - Different Products
Accounting, human resources, and logistics are the heart of every enterprise. mySAP ERP encompasses all these vital business processes within a company and provides functions for both corporate headquarters and small subsidiaries. Every company can benefit from mySAP ERP. All software has to be adapted to the specific company. A small company with few employees and relatively stable processes can use preconfigured SAP systems. mySAP All-in-One is the brand name for vertical (industry-specific or country-specific) solutions that are based on the technology of mySAP Business Suite and were developed in conjunction with SAP's partners. All mySAP All-in-One partner solutions are certified by SAP and are provided and implemented by SAP partners. SAP Business One is a comprehensive, integrated ERP application with an interface that is similar to Microsoft Windows. It is distinguished by simple navigation and drilldown options, innovative Drag&Relate functions, and integration with Microsoft Word and Excel.
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mySAP Applications mySAP Business Suite consists of individual applications. Each application has its own focus area and provides functions to map this area in a flexible and comprehensive way. These applications can be purchased as an entire suite or individually. All the applications are based on the SAP NetWeaver technology platform, an integration and application platform that reduces total cost of ownership across the entire IT landscape and supports the evolution of mySAP Business Suite to a services-based architecture.
Applications and Components mySAP applications describe processes and functions from a process point of view. Applications are SAP's products seen from the point of view of the customer, with an outside-in focus on company processes. Components, however, represent SAP's technical view of software with an inside-out focus. Components are not the actual company solutions, simply the technical building blocks. Business experience, strategies, and know-how are incorporated in SAP software. The flexibility and comprehensive integration and adaptation options offered by SAP software results in high-performance, industry-specific, and cross-industry e-business applications.
Figure 10: SAP Applications and SAP Components
To differentiate between applications and components, applications are named mySAP {cross-industry application} or SAP for {industry or industry segment} and components -- the (technical) detailed view – have the prefix SAP. For example when mySAP Customer Relationship Management (mySAP CRM)
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Lesson: Product Overview
is the solution to be implemented, SAP ERP Central Component, SAP NetWeaver Portal, SAP NetWeaver Business Intelligence, and SAP Customer Relationship Management are technical parts of this application.
SAP NetWeaver SAP's application and integration platform is the technical foundation for mySAP Business Suite, SAP Industry Packages, and SAP xApps. It delivers a complete, open, and flexible infrastructure that allows you to easily integrate SAP and non-SAP components.
Figure 11: SAP NetWeaver
SAP NetWeaver is divided into four areas: People Integration People Integration ensures that your employees have the information and functions that they require to perform their work as quickly and efficiently as possible. The functions of the SAP NetWeaver Portal play a central role here. Information Integration Information Integration is used to manage all data relevant to companies. This includes data for your own company and data relating to third parties. Process Integration Process Integration ensures that business processes run across system boundaries in a heterogeneous system landscape. This is achieved by using XML data packages and workflow scenarios, for instance. SAP NetWeaver Exchange Infrastructure (SAP NetWeaver XI) plays a central role here.
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Application Platform The Application Platform supports Java 2 Enterprise Edition (J2EE) and ABAP (SAP's programming language) in one environment. It guarantees the independence of databases and operating systems, the complete support of platform-independent Web services and company applications, and an open environment that is based on recognized standards. The central component of the Application Platform is the SAP NetWeaver Application Server.
Figure 12: SAP NetWeaver: Components
mySAP ERP It is imperative today more than ever to ensure that the business processes in an organization are integrated, streamlined, and transparent. mySAP ERP allows companies to gain better control of their administrative and operations environment and increase efficiency and profitability. Furthermore, the application drives down the costs of integration and deployment by shortening time to benefit and leveraging existing IT investments. mySAP ERP is designed in such a way that companies can implement only the business functions they need when they need them, thus simplifying upgrades and reducing total cost of ownership. With mySAP ERP, SAP has set a new standard for ERP systems. This application incorporates the mySAP ERP Financials, mySAP ERP Human Capital Management, mySAP ERP Operations and the mySAP ERP Corporate Services solutions.
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Figure 13: mySAP ERP
mySAP ERP Financials The aim of this solution is to utilize a company's funds effectively and, therefore, increase profitability in the long term. mySAP ERP Human Capital Management Every company has employees. They are important resources, and mySAP ERP HCM enables you to utilize them effectively toward the success of your company. This solution covers all aspects of human resources, from recruitment and training through payroll. mySAP ERP Operations mySAP ERP Operations provides an extensive operations solution for automating and streamlining procurement and logistics execution, product development and manufacturing, and sales and service. mySAP ERP Corporate Services Corporate Services introduces service solutions for end-to-end life cycles for travel management; environment, health & safety; and real-estate management. The section also addresses the development of efficient incentive programs.
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Figure 14: mySAP ERP: Components
The processes are fully integrated. Previously, an ERP system was connected to a database only. With SAP, an ERP system is now a combination of components that integrate people, information, and processes in a comprehensive and flexible way. mySAP ERP is also the core application of the mySAP Business Suite.
Evolution of ERP With its SAP R/3 system, SAP created a worldwide ERP standard. SAP R/3 has a wide palette of standard, integrated functions. For example, for processes in sales, shipping, or inventory management, data is automatically transferred to the functions in accounting. SAP R/3 has been through a number of release cycles. For each new release, the functions have been extended, applications have been optimized, and interfaces to other software components have been enhanced. SAP R/3 is developed using ABAP, SAP's own programming language.
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Figure 15: From R/3 to ERP
Since the SAP R/3 Enterprise release, changes and enhancements are integrated into the system as extensions. This accelerates and simplifies the upgrade process and adaptation to industry sectors. SAP ERP Central Component (SAP ECC) is the evolutionary successor of SAP R/3 and is one of the main components of the mySAP ERP application.
mySAP Business Suite If you want to remain competitive in the current economic climate, you have to be flexible and capable of changing to meet constant new demands from your customers. mySAP Business Suite provides this flexibility in a complete package of open, integrated applications for the entire value chain. Customers, employees, suppliers, and partners are brought together to form one unit in a process that takes almost no time at all.
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Figure 16: mySAP Business Suite
The core features and solutions from mySAP ERP are enhanced and extended through the following applications in the mySAP Business Suite: mySAP Customer Relationship Management mySAP CRM is an application that puts the customer first. The customer can contact companies through a number of communication channels. mySAP Product Lifecycle Management This application offers functions for product development, product safety, quality, and maintenance. mySAP Supply Chain Management Supply chains do not end at the warehouse doors. You can use mySAP SCM to plan and optimize supply chains across company boundaries. mySAP Supplier Relationship Management Procurement over the Internet and marketplaces are only two ways to optimize purchasing. Employees can use this application to provide procurement with information about demand directly from their work centers quickly, easily, and effectively.
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Figure 17: mySAP Business Suite: Components
Industry Packages Whereas the mySAP Business Suite is generally industry-independent, many industries require solutions which are specially bundled and enriched with additional industry-specific functions and processes. SAP fulfills this requirement through Industry Packages. These Industry Packages are partly including the result of joint development with strategic partners. Industry-specific functions are developed within these Industry Packages.
Figure 18: Industry Packages
Industry Packages for more then 20 industries are available today. Among these are applications for:
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Automotive SAP for Automotive is designed to streamline and improve disjointed business practices, enabling you to closely manage multitiered networks of customers, suppliers, and partners. This solution set facilitates seamless integration and collaboration across multiple internal and external organizations. It also includes best practices that supports critical business processes, providing full visibility into enterprise data and increasing speed and flexibility worldwide. Banking Based on a flexible, scalable infrastructure, SAP for Banking provides a robust environment for incorporating new technologies, controlling core banking processes, and extending operations to the Internet. Innovative core banking capabilities seamlessly connect front-office activities with back-office systems, enable low-cost, real-time processing of key financial transactions, and speed the development of multichannel products and services that meet the needs of your demand-oriented market. Chemicals SAP for Chemicals delivers capabilities for sales and operations planning, quality management, recipe and batch management, and supply chain operations. Also included is detailed profit reporting by customer, product, or segment, along with integrated hubs that let you unify process control systems and monitor production execution. Healthcare Healthcare is a high-pressure industry facing demands for higher-quality patient care, cost controls, government regulations, and increasing competition. SAP for Healthcare integrates your healthcare processes -from staffing and inventory to financials and patient-centric processes -- on an open platform designed for growth. And, when combined with leading, complementary components, SAP for Healthcare provides an end-to-end application for all administrative and clinical processes. Logistics Service Providers Designed in collaboration with many of the industry's leading companies, our comprehensive set of proven solutions, applications, technology, and services helps you manage your logistics business efficiently and profitably. SAP for Logistics Service Providers handles all order volumes and supports complex business processes in procurement, fulfillment, returns management, warehousing, and value-added logistics.
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Mining Mining consists of multiple processes, each with its own set of challenges, and mining operations must optimize these processes to reduce costs. What's more, mining operations need to ensure regulatory compliance and commit to sustainability, even as commodity prices shift based on global demand and supply. SAP for Mining enables you to meet the specific challenges of the mining industry by helping you manage your assets and operations and leverage global supply chain networks. As a result, you can increase efficiency and reduce costs. Oil and Gas In today's oil and gas industry, companies are caught between rising hydrocarbon prices and ever-growing pressure from customers and regulators. You make every effort to reduce production and distribution costs, but the need for profitability and accountability to your shareholders continues to increase. With SAP for Oil and Gas solutions, you can face the challenges of cost and profitability head on. This set of solutions gives you comprehensive tools that enable you to leverage key data, manage assets effectively, and maximize cash flow. Public Sector SAP for Public Sector creates fast, flexible, and responsive e-government by electronically connecting public administrations with citizens, businesses, suppliers, and other organizations via the Internet; enhancing communications; streamlining services; and cutting costs. With rich functionality tailored to the unique demands of the public sector, this set of solutions helps you meet the challenge of serving the public today. Retail Consumers have never been more in control. They have come to expect superb quality, selection, and service, and they're perfectly willing to abandon any retailer that can't deliver. In today's market, there's no margin for error. SAP for Retail provides a comprehensive solution designed specifically for the new retail environment, where every piece of your retail value chain – from forecasting and planning to allocation and replenishment – must be focused on meeting and surpassing customer expectations.
SAP xApps SAP xApps are a new breed of applications that enable you to drive improvements and innovations in your company more easily. With their ability to combine existing, heterogeneous systems to form cross-functional processes, SAP xApps bring people, information, and business processes together to make your company more dynamic and competitive. This flexibility allows you to implement business-wide strategies more easily and efficiently. SAP xApps increase the
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value of existing investments in the core business area and maximize the return on strategic assets, including employees, knowledge, products, business relationships, and information technology. SAP xApps realize strategies by using previously unparalleled functions that bring employees, data, and processes in a company together on one interface. SAP xApps provide both continuity and discontinuity. Continuity is ensured by increasing effectiveness and improving productive business transactions; discontinuity is provided in the sense that a company can perform an innovative change in an unusually flexible manner.
Figure 19: SAP xApps
By using xApps, a company can optimize a sales process across multiple systems. Functions such as a credit check from the accountancy system, or delivery time and availability (Available To Promise: ATP) from the logistics systems are used to design an integrated sales process. The employee works on just one interface, whereas before they had to perform separate checks in three different systems. The defining characteristics of SAP xApps are: Cross-functional SAP xApps can be implemented with a multitude of applications and information sources. This allows you to run critical integrated processes across heterogeneous systems in compliance with your company's business strategy. Composite SAP xApps execute flexible workflow and business processes independently of the underlying infrastructure. Furthermore, SAP xApps synchronize
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and improve existing business processes. This makes your company more flexible and, by improving the use of existing investments, it also increases your return on investment (ROI). Cross-system SAP xApps support a complex transfer of information (context, relevance), as well as the communication within the business itself, thereby simplifying the collaboration of working groups and sound decision making. Information-driven SAP xApps enable intelligent processes that are driven by decision-relevant business information. This enables a company to make informed, strategic decisions, which you can continually evaluate, and, if applicable, amend.
Figure 20: SAP xApps
Some examples of available xApps: SAP xApp Cost and Quotation Management (SAP xCQM) This solution enables the creation of a quotation through the upload of a bill of material (BOM), automatic pricing of existing components, streamlined eRFQ processing for new components, and execution of consolidated costs reports. SAP xApp Resource and Portfolio Management (SAP xRPM) SAP xRPM integrates information from existing project management, human resources, and financial systems to provide an overview of the project portfolio with easy drilldown to details for portfolio managers, project managers, resource managers, and project members. SAP xApp Product Definition (SAP xPD) SAP xPD is a simple, easy-to-use solution that addresses the hurdles and inefficiencies at the critical front end of product development processes, such as idea management and concept development.
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SAP xApp Emissions Management (SAP xEM) To comply with environmental regulations such as the Kyoto Protocol or the U.S. Clean Air Act, emissions management is a must for all energy-consuming and carbon-dioxide-producing businesses. SAP xEM helps corporations improve their compliance with emerging emissions regulations worldwide and increase revenue through trading of emissions credits.
SAP Solutions for Small and Midsize Businesses mySAP All-in-one Each qualified mySAP All-in-One partner solution is a prepackaged, industry-specific version of mySAP Business Suite with built-in content, tools, and methodologies for a cost-effective, turnkey implementation. mySAP All-in-One partner solutions offer out-of-the-box flexibility combined with the power of SAP's world-class business applications.
Figure 21: mySAP All-in-One
Qualified mySAP All-in-One partner solutions provides the following advantages: Rapid implementation and transparent costs mySAP All-in-One is provided by selected, qualified partners who are familiar with the challenges of the respective market segment and industry. The software is implemented using a special implementation method that is based on experience gained from more than 15,000 customer installations in more than 20 industries worldwide. In comparison to traditional implementation
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projects, customers are able to save costs by 40% and reduce implementation time by 30%. Due to its scalability, the enterprise solution can be readily extended when the company grows, and can thus keep pace with any company changes. Increased productivity and cost control The comprehensive, preconfigured mySAP All-in-One industry solutions integrate financials, human resources, logistics, and customer relationships. As a result, the customer profits from increased transparency and simplified administrative processes. This also means more efficiency – not only for the company but also for partners and vendors. Reliable partners For several years, SAP's technological know-how has been complemented by the industry knowledge of selected and qualified partners. The mySAP All-in-One partner solutions reflect this valuable experience. SAP partners offer comprehensive solutions consisting of hardware, software and consulting – all of which are tailored to small and midsize businesses needs. Scalability The flexible and powerful system technology, which is also used in big enterprises, supports the growth of small and midsize companies. The reason for this is simple: mySAP All-in-One can be easily adapted to changing business requirements.
SAP Business One SAP Business One is an easy-to-use business and operational management application for emerging and dynamic businesses ranging in size from 10 to several hundred employees. The application is simple yet powerful, allowing an immediate and complete view of both business operations and customer activities.
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Figure 22: SAP Business One
SAP Business One provides the following advantages: Rapid implementation SAP Business One can be implemented within a few days and can be easily maintained. In addition, its familiar Microsoft Office environment allows occasional users to rapidly learn to use the software. The application is based on open technologies and can be readily extended with special functions, if required. Lower costs Because it is cost effective, SAP Business One offers a wide range of functions for an integrated data processing. Thus, decision makers in small and midsize companies benefit from new value potential without exceeding their budgets. Increased productivity and cost control As the user interface of SAP Business One is simple and easy to understand, users will quickly learn how to work with the system. This will increase their productivity and help reduce the costs. The Drag&Relate technology enables flexible access to business information. For example, if you click on the content of the Customer or Item Number field in the Quotation window and drag it to another screen, the relevant data will be evaluated. This technology relates different data to each other. Sound business decisions SAP Business One allows managers to quickly and effectively access strategic information from all enterprise areas and gives them full control of the relevant information and activities.
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Scalability When a company grows, processes usually become more complex and software requirements change. SAP Business One's flexible and efficient system technology can easily keep pace with the company's growth. SAP Business One can be extended by the functions your company requires. It also facilitates the transition to a more comprehensive IT system, such as the mySAP Business Suite.
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Lesson Summary You should now be able to: • Explain SAP’s product offerings • Name the central SAP applications • Explain the concept and history of an ERP system • Explain the different between an application and a component
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Unit Summary You should now be able to: • Discuss SAP’s milestones and history • Explain SAP’s product offerings • Name the central SAP applications • Explain the concept and history of an ERP system • Explain the different between an application and a component
Related Information • •
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For related Glossary links refer to: help.sap.com/content/additional/glossary For more information access these Internet sites: www.sap.com/solutions or www.sap.com/industries
© 2006 SAP AG. All rights reserved.
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Test Your Knowledge
Test Your Knowledge 1.
SAP is a solutions company. Determine whether this statement is true or false.
□ □ 2.
True False
The SAP NetWeaver Application Platform is open and flexible. Determine whether this statement is true or false.
□ □
True False
3.
List at least three cross-industry or industry applications.
4.
All of the mySAP applications are role-based. Determine whether this statement is true or false.
□ □
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Answers 1.
SAP is a solutions company. Answer: True Business experience, strategy, and know-how are intangibles, which, bundled together with the vast flexibility, integration, and customizing potential of SAP software, have resulted in more powerful e-business solutions within specific industries and across industry borders.
2.
The SAP NetWeaver Application Platform is open and flexible. Answer: True The SAP NetWeaver Application Platform supports databases, applications, operating systems, and hardware from almost every major vendor.
3.
List at least three cross-industry or industry applications. Answer: Cross-Industry Applications: mySAP Enterprise Portals, mySAP CRM, mySAP SCM, mySAP SRM, mySAP PLM, mySAP ERP HCM, mySAP ERP Financials Industry Packages: SAP for Aerospace and Defense, SAP for Automotive, SAP for Banking, SAP for Chemicals, SAP for Consumer Products, SAP for Engineering, Construction and Operations, SAP for Healthcare, SAP for High Tech, SAP for Higher Education and Research, SAP for Insurance, SAP for Media, SAP for Mill Products, SAP for Mining, SAP for Oil and Gas, SAP for Public Sector, SAP for Retail, SAP for Telecommunications, SAP for Utilities
4.
All of the mySAP applications are role-based. Answer: True All of the processes within the SAP systems are mapped back to user roles. The mySAP NetWeaver Portal let you customize your interface so that you can perform tasks associated with your role.
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Unit 2 Navigation Unit Overview This unit will introduce you to logging on, navigating, and using the SAP help features.
Unit Objectives After completing this unit, you will be able to: • • • • • • • • • •
Create a new logon entry in the SAP Logon window Log on to any SAP system Describe the layout of the SAP Easy Access screen Differentiate between the SAP standard menu and the role-based user menu Use the favorites feature and add a transaction to your Favorites menu Navigate within the SAP Easy Access screen using several navigational options Create multiple active sessions List and describe the forms of help in the SAP system Search for and obtain helpful information using the different help methods in the SAP system Personalize the user interface
Unit Contents Lesson: Logging On to a SAP System........................................ 40 Exercise 1: Logging on to SAP Systems ................................. 43 Lesson: Navigating in the SAP System ....................................... 49 Exercise 2: Navigating in the SAP System .............................. 61 Exercise 3: Creating Favorites Using the Menu......................... 67 Lesson: Using Help and Personalizing Your User Interface ............... 71 Exercise 4: Using Help and Personalization Features ................. 75
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Lesson: Logging On to a SAP System Lesson Overview You can access SAP systems using different front-end programs (graphical user interfaces) with a variety of designs. For example, the Business Explorer (BEx) is the front end for the SAP Business Information Warehouse component of mySAP Business Intelligence. In this lesson however, we will explain and demonstrate how to log on to a SAP system using the general logon front end, the SAP Logon. We will also introduce several methods by which you can customize your user interface.
Lesson Objectives After completing this lesson, you will be able to: • •
Create a new logon entry in the SAP Logon window Log on to any SAP system
Business Example To efficiently use the SAP system, new users need to familiarize themselves with the screens and navigation in the SAP system.
The SAP GUI and SAP Log On You can access SAP systems using front-end programs with a variety of designs. Almost all SAP components are, however, accessible using a general front-end program, the SAP Graphical User Interface (SAP GUI). Several variants of the SAP GUI are available; these variants are all graphically equivalent, but adapted for use in different environments. For the sake of simplicity, additional descriptions refer to the SAP GUI for the Windows environment. The SAP GUI program connects the front-end computer with a specific SAP system. For starting SAP GUI, SAP provides another program: SAP Logon. When you call up the SAP Logon, a window displays a list of SAP systems for which you can start the logon process. This list is derived from a file on the front-end computer: saplogon.ini. This file is normally preconfigured centrally and made available to end users. During logon, the SAP Logon program also enables log on load distribution using the resources available for the system selected.
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Lesson: Logging On to a SAP System
Figure 23: The SAP Logon Program
Logon Process Before you log on for the first time, your system administrator will give you an initial password. During the process of logging on, you should enter a new password, one that you alone will know. After that, use your own password whenever you log on. Note: These procedures may differ somewhat at your company. For more information, contact your system administrator.
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Figure 24: Logging on to an SAP System
Hint: If you select the TAB key after you have entered data in a field, the cursor moves to the beginning of the next field. However, if you enter the maximum number of characters possible in a field, you do not have to select TAB. For example, the maximum number of characters you can enter in the Client field is three. If you enter 100 in the Client field, the cursor automatically moves to the beginning of the next field. If there are system-wide messages, the System Messages dialog box appears. After you have read the messages, choose Continue (or choose Enter) to close the dialog box.
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Lesson: Logging On to a SAP System
Exercise 1: Logging on to SAP Systems Exercise Objectives After completing this exercise, you will be able to: • Create a logon entry • Log on to an SAP system
Business Example As an employee of a company that manages their business with SAP, you need to gain access to an SAP system to do your daily business transactions.
Task: Caution: This exercise depends on your location! Depending on local settings, installations, and the connection to the SAP systems, a SAP training office can have slightly different possibilities. Your training instructor will point out and explain the proper logon procedure. If necessary, create a logon entry to identify which system you would like to gain access to. Then, access that system with the appropriate client, user ID, and password. 1.
Create an entry in the SAP GUI logon screen based upon the information provided by the instructor. Field
Entry
Your SAP Training System: Message Server (your instructor will tell you if this is needed): SAP Router (your instructor will tell you if this is needed): 2.
You have now created a logon entry. Use this entry to gain access to the SAP system with the information provided.
Continued on next page
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Field
Entry
User: Password: Client: Language: New Password
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Lesson: Logging On to a SAP System
Solution 1: Logging on to SAP Systems Task: Caution: This exercise depends on your location! Depending on local settings, installations, and the connection to the SAP systems, a SAP training office can have slightly different possibilities. Your training instructor will point out and explain the proper logon procedure. If necessary, create a logon entry to identify which system you would like to gain access to. Then, access that system with the appropriate client, user ID, and password. 1.
Create an entry in the SAP GUI logon screen based upon the information provided by the instructor.
Continued on next page
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Field
Entry
Your SAP Training System: Message Server (your instructor will tell you if this is needed): SAP Router (your instructor will tell you if this is needed): a)
Locate the SAP Logon program on your desktop. Note: There are a variety of ways to find the program and a variety of places it could reside on your desktop. These variables depend on how the GUI software was installed.
b)
Choose Groups.
c)
Enter in the System ID field.
d)
If necessary enter the Message Server: .
e)
If necessary enter the SAP Router : .
f)
Choose Generate List .
g)
The system will create a list of defined server groups for your training system. Select the groupSpace.
h)
Choose Add. Note: If desired, you can enter a different system name for this screen. The new logon entry appears in the list of SAP systems.
2.
You have now created a logon entry. Use this entry to gain access to the SAP system with the information provided.
Continued on next page
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Lesson: Logging On to a SAP System
Field
Entry
User: Password: Client: Language: New Password a)
Choose SAP Course.
b)
Choose Log on.
c)
Enter the Client: .
d)
Enter the Password: .
e)
Enter the Language: .
f)
Select
Enter. Note: You might be asked to change your password. If so, continue with the following steps. If you are not asked, skip to solution step j.
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g)
A password change dialog box displays. Enter a New Password: .
h)
Enter Repeat Password: .
i)
Choose Enter.
j)
Choose Enter as many times as needed, reading any system messages that might display, until you get to the SAP Easy Access screen.
© 2006 SAP AG. All rights reserved.
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Lesson Summary You should now be able to: • Create a new logon entry in the SAP Logon window • Log on to any SAP system
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Lesson: Navigating in the SAP System
Lesson: Navigating in the SAP System Lesson Overview Once you have logged on to the SAP system, you will complete your day-to-day work by initiating transactions. You have a number of methods you can use to do this. In this lesson, we introduce you to the basic screen layout and show you how to navigate in the system to complete your daily work.
Lesson Objectives After completing this lesson, you will be able to: • • • • •
Describe the layout of the SAP Easy Access screen Differentiate between the SAP standard menu and the role-based user menu Use the favorites feature and add a transaction to your Favorites menu Navigate within the SAP Easy Access screen using several navigational options Create multiple active sessions
Business Example To efficiently use the SAP system, new users need to familiarize themselves with the screens and navigation in the SAP system.
Screen Structure The SAP Easy Access screen is the default initial screen in SAP systems. The left side of the screen contains a tree hierarchy of the menus available to you in the SAP system; you can use the right side of the screen to display your company logo. This graphic is made available centrally by your system administrator and cannot be customized by individual users.
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Figure 25: SAP Easy Access
Hint: You can find a detailed description of how to configure the graphic in SAP Easy Access under Extras → Administration information (if you have the correct authorization). Please note that the graphic is stored in the system and transported to the front end every time a user logs on. Although it is transported in compressed form, the graphic should not exceed 20 KB. You can also prevent the graphic from being displayed by either choosing the Low Speed Connection setting in the SAP Logon program (see SAP Note 161053) or by choosing Extras → Settings in the SAP Easy Access screen.
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Figure 26: Screen Structure
An SAP screen can contain the following simple screen elements: Command field You can start applications directly by entering their transaction code in the command field (this is hidden as default). You can find the transaction code for an application either in the Overview menu on the SAP Easy Access screen, in the status bar (see below), or in the application itself under System → Status. Menu bar The menu bar is the top line of any primary window in the SAP system. The menus shown depend on which application you are using. These menus may also contain cascading menus. Standard toolbar The buttons in the standard toolbar are shown on every SAP screen. If certain buttons are not available in an application, the buttons that you cannot use are deactivated. If you place the cursor over a button for a short time, the system displays a flag with the name or function of the button. If appropriate, the corresponding function key setting is also displayed. Title bar The title bar names the function that you are currently using.
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Application toolbar The application toolbar shows the buttons available in the application that you are currently using. Checkboxes Checkboxes allow you to select several options from a group of fields. Radio buttons With radio buttons, you can only select one option. Tab A tab allows you to organize several screen areas to improve clarity and organization of data. Status bar The status bar displays information on the current system status, such as warnings and errors. You can also change the display variant to show, for example, the transaction code of the transaction you are currently using. Other elements include input fields and buttons.
Role-Based User Menus SAP offers two formats to display a menu of transactions, reports, or Web-based applications. These are the SAP standard menu and role-based user menus. The SAP standard menu is a complete list of all possible transactions and reports offered by the system. Role-based user menus are collections of activities used in business scenarios. Users can access transactions, reports, or Web-based applications through their role-based menus. Users can change aspects of roles to which they are assigned, for example, by creating their own Favorites list.
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Figure 27: Role-Based User Menus
Hint: System administrators can use table USSERS_SMM to determine whether or not users are allowed to switch between the SAP menu and their role-based menus. If both menus are disallowed, then the user's role-based menu is displayed. Keep in mind that even though the users cannot display the SAP menu, they can still use the transaction codes to initiate transactions and functions if they have proper authorization to the transaction or function. When assigned a role, users are assigned not only the menu, but also the authorizations they require to access the information, ensuring that the business data is always secure. Authorization profiles are generated according to the activities contained in the role, thus restricting the authorizations of each user in the SAP system to only those activities. In the mySAP Enterprise Portal, you use a Web browser to view and execute the required tasks and activities. Roles can be assigned here, as well. The system administrator can tailor the role-based menu to the personal requirements of each user by adding or deleting menu entries.
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Caution: As a system administrator, you may be responsible for setting up role-based menus, which are then transferred to the front end. Therefore, it makes sense to keep roles as small as possible, since large roles could take a long time to transfer to the front end. Hint: If a user has several roles, it is possible that some of the functions are repeated in different parts of the role-based menu. If you want to prevent this, please see SAP Note 357693 (and the other SAP Notes to which it refers) for information on finding and deleting duplicates.
Using Favorites In SAP Easy Access, you can create a favorites list containing: • • •
Transactions Links to files Internet addresses
The favorites list, which is initially empty, can be edited by each user according to their preferences; you can only view your own favorites list. Hint: Favorites can be organized into folders, and you can edit your favorites in the SAP Easy Access screen using the Favorites menu.
Figure 28: Favorites Menu
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Lesson: Navigating in the SAP System
Navigation Options You have several options for navigating in an SAP system: • • •
Enter transaction codes in the command field. Choose items from menus in the menu bar. Choose items from the Favorites list or from the role-based user menus.
Figure 29: Navigation Options
Transaction Code Every transaction or function in the system has a transaction code. You can enter the transaction code in the command field to initiate the transaction. This is one of the most direct ways to initiate a transaction. Menus Menus allow you to find a specific transaction when you do not know the transaction code. The menu is organized according to the task you are performing in the SAP system. The menus are drop-down; therefore, when you choose a menu item, further options appear. Sometimes not all of the available menus fit on one line in the menu bar. In this case, they wrap to the next line. The drop-down principle stays the same. Favorites or User Menus Finally, you have the ability to set up favorites or user menus, which allow you to navigate directly to transactions, functions, and reports that you use frequently.
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Using Transaction Codes You can enter a system transaction code in the command field to go directly to a transaction or function. This is very convenient, provided you know the transaction code for the transaction or function you want. You can find the transaction code by first navigating to a transaction, and then choosing System → Status. The following conventions are important time-saving tips for using transaction codes: Entry
Result
/n
Cancels the current transaction
/nXXXX
Initiates the specified transaction directly from another transaction
/o
Displays an overview of sessions
/oXXXX
Initiates the specified transaction in a new session
/nend
Ends the logon session with a confirmation pop-up window
/nex
Ends the logon session without a confirmation pop-up window
/i
Deletes your current session
Status Bar The status bar provides general information on the SAP system and transaction or task on which you are working. At the left of the status bar, system messages are displayed. The right end of the status bar contains three fields: one with server information, and two with status information.
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Figure 30: Status Bar
At the far left, the status bar: • •
Identifies error messages Identifies other system messages
To hide the status fields, choose the arrow to the left of the fields. To display the following system information, choose each in the first status field: • • • • • •
System Client User Program Transaction Response time
The second status field displays the server to which you are connected. The third status field specifies your data entry mode. By choosing this field, you can toggle between the insert (INS) and overwrite (OVR) modes.
Multiple Logons and Multiple Sessions There are two ways to open two SAP systems: using multiple logons or using multiple sessions. Using multiple logons actually creates a brand new logon for you. You should only be logged on once per SAP system, and should use multiple sessions if you want to view multiple windows. Using multiple sessions allows you to open several windows at the same time on the same computer.
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The SAP system tracks multiple logons as of SAP R/3 4.6. The primary reasons for tracking multiple logons are security and licensing. If the same user logs on more than once, then for each subsequent logon, the system displays a warning message that offers the user the following three options: 1. 2. 3.
Continue with this logon and end any other logons of this user in the system. Continue with this logon without ending any other logons in the system (this is tracked). Terminate this logon.
Figure 31: Multiple Sessions
You can create a new session at any time. This is especially helpful if you are in the middle of completing a transaction and you need to verify some information in order to complete the transaction. You can create several sessions, and each session is independent of the others. You will not lose any data in sessions that are already open. For example, closing the first session does not cause the other sessions to close. Too many open sessions can result in slower system performance. For this reason, your system administrator may limit the number of sessions you can create. You can move among sessions as often as you like without losing any data. As long as
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you remain logged on to the SAP system, you can leave a session for as long as you like. Moving to a different session is like putting a telephone call on hold; you can resume the call whenever you are ready. Hint: Your system administrator can use a system parameter to define how many sessions are permissible for each logon to the SAP system. This parameter (rdisp/max_alt_modes) is valid for all users of that system. Depending on the GUI and the SAP WebAS version this parameter can be set to any value between 2 and 6 or between 2 and 16. To move from one session to another, click any part of the window that contains the session you want to go to (or use the keys specified for changing windows: ALT + TAB. The window you choose becomes the active window by moving in front of all the other windows on your screen. If you have several sessions open, you can minimize the sessions you are not using. When you need to use one of these sessions later, you can restore it by selecting the appropriate symbol in the status bar, making it the active session. After you are done using a session, it is a good idea to end it. Each session uses resources that can affect how fast the SAP system responds to your requests. Before you end a session, save any data you want to keep. Hint: When you end a session, the system does NOT prompt you to save your data.
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2006/Q2
SAP01
Lesson: Navigating in the SAP System
Exercise 2: Navigating in the SAP System Exercise Objectives After completing this exercise, you will be able to: • Locate specific folders in the SAP Easy Access menu • Navigate the SAP Easy Access menu to locate a specific transaction • Initiate transactions using transaction codes
Business Example As a new user working on a SAP system, you need to locate specific transactions in the system.
Task 1: Locate a variety of transactions by navigating the SAP Easy Access menu. 1.
What are transaction texts that are located under the folder Order in Sales and Distribution? Record your results in the following table. Field
Transaction Text
Transaction Transaction Transaction Transaction
Task 2: You have found that transaction codes provide an easy way to navigate directly to a transaction. Try to find out a transaction code. 1.
You want to display a list of users who are logged on to the system. First use the SAP standard menu to do this. Start with the Tools menu.
2.
Display the transaction code for this transaction using the System status menu. Record your result.
3.
Return to the SAP Easy Access screen and use the transaction code to initiate the transaction to display the user overview, which provides a list of users who are logged on to the system.
Continued on next page
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Task 3: Try out a few transaction codes and check the results. 1.
Start this exercise in the SAP Easy Access screen and try out these transaction codes without returning to the SAP Easy Access screen. Record your results in the space provided. Hint: In case you do log out, please refer to Exercise 1 (Logging In) for instructions on how to log back in to the system. Entry
Result
su3 sm04 /nsm04 /nend
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Lesson: Navigating in the SAP System
Solution 2: Navigating in the SAP System Task 1: Locate a variety of transactions by navigating the SAP Easy Access menu. 1.
What are transaction texts that are located under the folder Order in Sales and Distribution? Record your results in the following table. Field
Transaction Text
Transaction Transaction Transaction Transaction a)
Choose the triangle to the left of
SAP Standard Menu.
b)
Choose the triangle to the left of Logistics.
c)
Choose the triangle to the left of Sales and Distribution.
d)
Choose the triangle to the left of Sales.
e)
Choose the triangle to the left of Order.
f)
Record your results. Field
Transaction Text
Transaction
Create
Transaction
Change
Transaction
Display
Transaction
Create Using Part Load Lift Orders
Task 2: You have found that transaction codes provide an easy way to navigate directly to a transaction. Try to find out a transaction code. 1.
You want to display a list of users who are logged on to the system. First use the SAP standard menu to do this. Start with the Tools menu. a)
Choose Tools → Administration → Monitor → System Monitoring → User Overview. Continued on next page
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2.
3.
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Display the transaction code for this transaction using the System status menu. Record your result. a)
Choose System → Status.
b)
Locate the transaction code, which is SM04.
Return to the SAP Easy Access screen and use the transaction code to initiate the transaction to display the user overview, which provides a list of users who are logged on to the system. a)
Enter sm04 in the command field.
b)
Choose Enter. The user overview displays.
c)
Choose
Exit to exit the screen to the SAP Easy Access menu.
Task 3: Try out a few transaction codes and check the results. 1.
Start this exercise in the SAP Easy Access screen and try out these transaction codes without returning to the SAP Easy Access screen. Record your results in the space provided. Hint: In case you do log out, please refer to Exercise 1 (Logging In) for instructions on how to log back in to the system.
Continued on next page
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Entry
Result
su3 sm04 /nsm04 /nend a)
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Your activities should have resulted in the following. Entry
Result
su3
Initiates the screen for maintaining your own user settings.
sm04
Does not initiate a transaction. A transaction can only be started directly from the SAP Easy Access screen unless you use a prefix.
/nsm04
Initiates the user overview successfully. /n first ends the active transaction and then initiates the specified transaction.
/nend
A log off confirmation pop-up window appears. You could now exit the system.
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Lesson: Navigating in the SAP System
Exercise 3: Creating Favorites Using the Menu Exercise Objectives After completing this exercise, you will be able to: • Navigate to a transaction you would like to save as a favorite • Use the menu bar to create and store a favorite transaction
Business Example You have specific transactions, files, or Web sites that you access frequently, so you want to add them to your Favorites folder. This will enable you to quickly and easily access these transactions without having to navigate the standard or role-based menus.
Task: Create a variety of favorite transactions that will appear in the Favorites menu on your SAP Easy Access screen.
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1.
Create a favorite for the transaction to post an incoming payment in accounts receivable. This is transaction code F-28.
2.
Create a favorite for the transaction to display a customer (centrally) in sales and distribution. This is transaction code XD03.
3.
Create a favorite for the transaction to maintain master data in human resources. This is transaction code PA30.
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Solution 3: Creating Favorites Using the Menu Task: Create a variety of favorite transactions that will appear in the Favorites menu on your SAP Easy Access screen. 1.
Create a favorite for the transaction to post an incoming payment in accounts receivable. This is transaction code F-28. a)
Choose Accounting → Financial Accounting → Customer → Document Entry.
b)
Choose
Incoming Payment. Caution: Do not double-click Incoming Payment. You simply want to highlight the menu item, not initiate the transaction.
c)
Choose Favorites → Add. Hint: This menu path is at the top of your window. You can also use Add to Favorites.
2.
Create a favorite for the transaction to display a customer (centrally) in sales and distribution. This is transaction code XD03. a)
Choose Logistics → Sales and Distribution → Master Data → Business Partners → Customer → Display.
b)
Choose
Complete. Caution: Do not double-click Complete. You simply want to highlight the menu item, not initiate the transaction.
c)
Choose Favorites → Add. Hint: This menu path is at the top of your window. You can also use Add to Favorites.
Continued on next page
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3.
Create a favorite for the transaction to maintain master data in human resources. This is transaction code PA30. a)
Choose Human Resources → Personnel Management → Administration → HR Master Data.
b)
Choose
Maintain. Caution: Do not double-click Maintain. You simply want to highlight the menu item, not initiate the transaction.
c)
Choose Favorites → Add. Hint: This menu path is at the top of your window. You can Add to Favorites. also use
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Lesson Summary You should now be able to: • Describe the layout of the SAP Easy Access screen • Differentiate between the SAP standard menu and the role-based user menu • Use the favorites feature and add a transaction to your Favorites menu • Navigate within the SAP Easy Access screen using several navigational options • Create multiple active sessions
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Lesson: Using Help and Personalizing Your User Interface
Lesson: Using Help and Personalizing Your User Interface Lesson Overview While working in the system, you may encounter questions such as what values are available for a specific field, what is the meaning of a field, or what procedure to use to complete a transaction? In this lesson, we will introduce the various types of online help available in the system and develop an understanding of how to search for information.
Lesson Objectives After completing this lesson, you will be able to: • • •
List and describe the forms of help in the SAP system Search for and obtain helpful information using the different help methods in the SAP system Personalize the user interface
Business Example You are in the process of entering new data into the system. You encounter a field that you have never used before. You need to find out what type of data you need to provide, and if there are possible values that already exist for that field.
Help Features The SAP system provides comprehensive online help. You can display the help from any screen in the system. You can always request help using the Help menu or using the relevant icon. The Help menu contains the following options: Application help Application help displays comprehensive help for the current application. Selecting this menu option in the initial screen displays help on getting started with SAP. SAP Library All online documentation can be found here. Glossary You can search for definitions of terms in the glossary. Release notes This displays notes that describe functional changes that occur between SAP system releases.
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SAP Service Marketplace This enables you to log on to the SAP Service Marketplace. Create Support Message With support messages you can directly contact the responsible support unit in the SAP Solution Manager from your SAP system. Settings Settings enable you to select settings for help.
Figure 32: Getting Help
Field Help Use F1 for help on fields, menus, functions, and messages. F1 help also provides technical information on the relevant field, including, for example, the parameter ID, which you can use to assign values to the field for your user.
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Figure 33: Field Help: F1
Use F4 for information about what values can be entered. You can access F4 help for a selected field using the button immediately to the right of that field. If input fields are marked with a small check mark icon, then you can only continue in that application by entering a permitted value. You can flag many fields in an application to make them either required entry fields or optional entry fields. You can also hide fields using transaction or screen variants, or Customizing.
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Figure 34: Field Help: F4
Methods for Personalizing the User Interface You have several personalization options available to help you set up your working environment. Some of the many things you can do are: • • • • •
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Change the layout of the SAP Easy Access screen Track your input history to provide input help Display status messages in a pop-up window instead of the status bar Set preferences for how data displays Adjust the color and behavior of the screens and fields
© 2006 SAP AG. All rights reserved.
2006/Q2
SAP01
Lesson: Using Help and Personalizing Your User Interface
Exercise 4: Using Help and Personalization Features Exercise Objectives After completing this exercise, you will be able to: • Answer questions using the standard help features in an SAP system • Personalize your user interface
Business Example As you complete your day-to-day work, you will encounter times when you may not know what information is being requested in a certain field, or the possible values that are available for the field. In addition, you may find times when you would like to learn more about a transaction or specific functionality in the system. You need to rely on the various help features in the system to assist you with these tasks.
Task 1: You are a buyer for you company. You want to preset the value for the purchasing organization so that when you display vendor information, the value of your purchasing organization defaults in the field. 1.
Navigate to the vendor display by choosing Logistics → Materials Management → Purchasing → Master Data → Vendor → Central → Display.. Locate the parameter ID for the Purchasing Organization. Record the parameter ID. Hint: You can also use transaction code XK03 to display the vendor.
2.
Find the possible values for the purchasing organization. You have been told that you are in purchasing organization 1000. Confirm that this purchasing organization is valid.
3.
Set your the value for the purchasing organization in your user profile using the System menu.
4.
Confirm that the value for the purchasing organization defaults to 1000.
5.
Take a moment to review the procedure for displaying vendor information.
Continued on next page
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Task 2: You are just beginning to use the SAP system and you want to personalize your user interface.
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1.
The first thing you would like to do is to have the system and error messages appear in a pop-up window instead of the status bar.
2.
Confirm that the date and currency format display according to your preference.
© 2006 SAP AG. All rights reserved.
2006/Q2
SAP01
Lesson: Using Help and Personalizing Your User Interface
Solution 4: Using Help and Personalization Features Task 1: You are a buyer for you company. You want to preset the value for the purchasing organization so that when you display vendor information, the value of your purchasing organization defaults in the field. 1.
Navigate to the vendor display by choosing Logistics → Materials Management → Purchasing → Master Data → Vendor → Central → Display.. Locate the parameter ID for the Purchasing Organization. Record the parameter ID. Hint: You can also use transaction code XK03 to display the vendor.
2.
a)
Place your cursor in the Purch. organization field.
b)
Press the F1 key.
c)
Choose Technical Information.
d)
Locate the parameter ID, which should be EKO.
Find the possible values for the purchasing organization. You have been told that you are in purchasing organization 1000. Confirm that this purchasing organization is valid. a)
Close the field help and technical information windows.
b)
Place your cursor in the Purch. organization field.
c)
Press the F4 key. The Restrict value range window appears, enabling you to restrict your search. For this exercise, we will search all values.
d)
Choose Start search.
e)
Confirm that purchasing organization 1000 is a valid entry for this field.
Continued on next page
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Set your the value for the purchasing organization in your user profile using the System menu. a)
Choose System → User profile → Own data.
b)
Choose the Parameters tab.
c)
Enter EKO in the Parameters field.
d)
Enter 1000 in the Values field.
e)
Choose Enter. Your entry is added to the list of parameters in alphabetical order. In addition, the text field for the EKO parameter now reads “Purchasing Organization”.
f) 4.
5.
Save.
Choose
Confirm that the value for the purchasing organization defaults to 1000. a)
Enter transaction XK03 in the command field.
b)
Confirm that 1000 is the default value in the Purch. organization field.
Take a moment to review the procedure for displaying vendor information. a)
Choose Help → Application help.
Task 2: You are just beginning to use the SAP system and you want to personalize your user interface. 1.
The first thing you would like to do is to have the system and error messages appear in a pop-up window instead of the status bar. a)
Choose Customizing of local layout. Hint: This button appears in the system toolbar along the top of the screen.
b)
Choose Options.
c)
Choose the Options tab.
d)
Choose: • • •
e)
Dialog Box at Success Message Dialog Box at Warning Message Dialog Box at Error Message
Choose OK. Continued on next page
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2.
Confirm that the date and currency format display according to your preference. a)
Choose System → User profile → Own data. The Maintain User Profile screen opens in a new window.
b)
Choose the Defaults tab. Hint: You may need to toggle to the Maintain User Profile screen by pressing ALT + TAB.
c)
Confirm that your decimal notation is set to a period and that your date format appears in MM/DD/YYYY format, if this is your preference.
d)
Choose Save. A confirmation that your user information was saved displays. Note: The information window appears in a pop-up window instead of the status bar, as set up in the previous step.
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Lesson Summary You should now be able to: • List and describe the forms of help in the SAP system • Search for and obtain helpful information using the different help methods in the SAP system • Personalize the user interface
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Unit Summary
Unit Summary You should now be able to: • Create a new logon entry in the SAP Logon window • Log on to any SAP system • Describe the layout of the SAP Easy Access screen • Differentiate between the SAP standard menu and the role-based user menu • Use the favorites feature and add a transaction to your Favorites menu • Navigate within the SAP Easy Access screen using several navigational options • Create multiple active sessions • List and describe the forms of help in the SAP system • Search for and obtain helpful information using the different help methods in the SAP system • Personalize the user interface
Related Information •
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For related Glossary links refer to: help.sap.com/content/additional/glossary
© 2006 SAP AG. All rights reserved.
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Test Your Knowledge
Test Your Knowledge 1.
Which of the following is not part of the information required to log on to the SAP system? Choose the correct answer(s).
□ □ □ □ 2.
A B C D
Enter a specific client number Enter your user ID Enter your password Customize your settings
You can only have one SAP system session open at a time. Determine whether this statement is true or false.
□ □ 3.
True False
What menus are standard on all SAP screens? Choose the correct answer(s).
□ □ □ □ 4.
A B C D
System Help Both A and B None of the above
Which of the following provides general information on the SAP system and transaction or task on which you are working? Choose the correct answer(s).
□ □ □ □ 5.
A B C D
Status bar Menu path Role bar None of the above
In the SAP Easy Access menu, you can create a favorites list containing: Choose the correct answer(s).
□ □ □ □
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A B C D
Web addresses Transactions Links to files All of the above
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Select all of the following entries that are valid in the command field. If you are uncertain, try them on the system before you select the correct answers. Choose the correct answer(s).
□ □ □ □ □ 7.
A B C D E
/nend /nex ?sm04 /nsm04 sm04
You are about to use a transaction that you have never used before, and you have already navigated to the transaction. You would like to learn more about the transaction and see the procedure for completing it. Which of the following forms of help would provide the information for which you are looking in the most efficient manner possible? Choose the correct answer(s).
□ □ □ □ □ □
A B C D E F
F1 F4 Application help SAP Library Glossary Release Notes
8.
List and describe three different types of online help that are available in the SAP system.
9.
You would like to preset a value for a field that you have to enter frequently. To do this, you need the parameter ID. Which help function will you use to locate the parameter ID when you are on the field? Choose the correct answer(s).
□ □ □ □ □
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A B C D E
F1 F4 System help F11 Application help
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Test Your Knowledge
10. Application help, which is available through the Help menu, is context-sensitive. This means that it will link you directly to the help for whatever application area of the system in which you are currently working. Determine whether this statement is true or false.
□ □
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True False
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Answers 1.
Which of the following is not part of the information required to log on to the SAP system? Answer: D You do not customize your settings until you are already logged on to the SAP system.
2.
You can only have one SAP system session open at a time. Answer: False You can create up to 16 sessions. Each session is independent of the others.
3.
What menus are standard on all SAP screens? Answer: C The System menu contains functions that affect the system as a whole, such as Create session, User profile, and Log off. The Help menu provides various forms of online help.
4.
Which of the following provides general information on the SAP system and transaction or task on which you are working? Answer: A The status bar contains information on system messages, as well as system information such as client, user, transaction codes, and response time.
5.
In the SAP Easy Access menu, you can create a favorites list containing: Answer: D Favorites can consist of Web links, standard and customer transaction codes, and links to other files such as Microsoft Word documents or PowerPoint files.
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Test Your Knowledge
6.
Select all of the following entries that are valid in the command field. If you are uncertain, try them on the system before you select the correct answers. Answer: A, B, D, E You can enter any valid transaction code directly on the SAP Easy Access screen. If you are in another screen, you need to enter /n in front of the transaction code for the transaction code to work. /nend and /nex are two different log off options. ?sm04 is not a valid entry.
7.
You are about to use a transaction that you have never used before, and you have already navigated to the transaction. You would like to learn more about the transaction and see the procedure for completing it. Which of the following forms of help would provide the information for which you are looking in the most efficient manner possible? Answer: C Although you could locate the information in the SAP Library, the most efficient method is the application help because it is context-sensitive. Here you will find comprehensive information about the application.
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8.
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List and describe three different types of online help that are available in the SAP system. Answer: Following are the types of system-level help that are available in the SAP system: Application help Application help displays comprehensive help for the current application. Selecting this menu option in the initial screen displays help on getting started with SAP. SAP Library All online documentation can be found here. Glossary You can search for definitions of terms here. Release notes This displays notes that describe functional changes that occur between SAP system releases. SAPNet This enables you to log on to SAPNet. Feedback Feedback enables you to send a message to the SAPNet front end, the SAP service system. Settings Settings enable you to select settings for help. F1 F1 is field-level help that provides information about the field. F4 F4 is field-level help that provides a list of field values or an option to search for the information in the case of an extensive list.
9.
You would like to preset a value for a field that you have to enter frequently. To do this, you need the parameter ID. Which help function will you use to locate the parameter ID when you are on the field? Answer: A F1 provides help on the purpose of a specific field, and also provides technical information for the field. Here you will find the parameter ID for the field in question.
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Test Your Knowledge
10. Application help, which is available through the Help menu, is context-sensitive. This means that it will link you directly to the help for whatever application area of the system in which you are currently working. Answer: True This is true. Context-sensitive application help makes it easier for you to locate assistance with specific applications.
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Unit 3 Systemwide Concepts Unit Overview This unit will introduce you to some system-wide concepts of SAP software. We will also introduce IDES, the SAP model company.
Unit Objectives After completing this unit, you will be able to: • • • •
State the purpose of an organizational element in the SAP system Explain the purpose of master data in the SAP system Explain the purpose of transactions in SAP training Explain the use of IDES
Unit Contents Lesson: System-Wide Concepts............................................... 92 Exercise 5: Display a Customer Master .................................103 Exercise 6: Display a Material Master ...................................109 Exercise 7: Create a Sales Quotation ................................... 115
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Lesson: System-Wide Concepts Lesson Overview This lesson focuses on the system-wide concepts that underlie the SAP system. These concepts, organizational elements, master data, and transactions, are the basic elements designed and utilized to represent a company’s enterprise structure and business processes within the SAP system. Following are brief descriptions of the concepts that will be discussed in more detail in this lesson: Organizational Elements A company’s enterprise structure is mapped to SAP applications using organizational elements. Master Data Created centrally and available to all applications and all authorized users, master data also has an organizational aspect because its information is organized into views that are assigned to organizational elements. Transactions Transactions are application programs that execute business processes in the SAP system. Examples include create sales order, change customer master, or display a sales order's list report.
Lesson Objectives After completing this lesson, you will be able to: • • • •
State the purpose of an organizational element in the SAP system Explain the purpose of master data in the SAP system Explain the purpose of transactions in SAP training Explain the use of IDES
Business Example Processes within a company generally take place across departmental boundaries. In global companies, these processes take place across national and company boundaries. The long-term success of IDES AG, is dependent on collaboration with business partners and a global outlook. IDES wants new orders from customers entered into the SAP system with minimal data entry and maximum data accuracy. IDES must also have a record of all transactions.
Organizational Elements Client
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The client is the highest-level element of all organizational elements; it represents the enterprise/headquarters group. Company Code The company code is a legal independent accounting unit representing the central organizational element of financial accounting. The company code also represents the tax law (national) view of the company, the fiscal calendar, the local currency, and the tax reporting requirements. Plant A plant can manufacture product, distribute product, or provide a service; it is the central organizational unit of production. Storage Location Material stocks in Inventory Management can be differentiated within one plant according to storage location. Sales Organization The sales organization is the central organizational element in sales order management that controls the terms of sale to the customer. Distribution Channel Distribution channels can be used to define how different products reach consumers, for example, wholesale. Organizational Unit Organizational units describe the various business units that exist in an enterprise. Often units are loosely defined as functional or regional departments. Position Positions are the individual employee assignments in the enterprise.
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Figure 35: Organizational Structure: Terminology
IDES IDES (International Demonstration and Educational System) is a demo system developed and used by SAP, which is available for customers as well, and at the same time it is an international company dependent upon collaborations with external business partners and a global outlook.
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Figure 36: IDES Holding company
IDES AG is a manufacturing company. It operates worldwide and has a number of subsidiaries. This company's processes are using during this training course to demonstrate the solutions provided by SAP.
Figure 37: IDES AG
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As a model company, IDES has a large number of business branches and branch-specific subsidiaries. Business processes are fully set up and include all core areas, such as purchasing, sales, marketing, and manufacturing. The scenario for the IDES is described in detail below. As an international company, IDES has several holdings and requires the ability to report to shareholders on an international bases. Management's goal over the next year is to increase profits. Costing analysis reports, cash management reports, and overhead cost reports are to be captured to a business intelligence system for management review. IDES AG produces many products. Products are manufactured at a number of production locations worldwide. Global planning ensures that deliveries are made from the nearest distribution center.
Figure 38: Accounting and Human Capital Management
Customers and interested parties have access to information about IDES products, accessories, and services on the IDES company's home page. A user-friendly interface and a product search function make it easy for customers to create purchase requests. IDES employees can access personnel records from an Internet portal and make changes to their benefits, as well as buy office supplies and assets billable to their cost centers.
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System-Wide Master Data Concepts In SAP, master data is created centrally and available to all applications and all authorized users. Centrally stored master data means data records are always consistent, up-to-date, and free of redundancy. Master data also has an organizational aspect because its information is organized into views that are assigned to organizational elements. The segmented structure of master records makes it possible to flexibly depict the various organizational structures of an operation. Integrating all of the corresponding data (such as customer or material) into one single database object means that the problem of data redundancy is not an issue and data integrity is enhanced. All areas can use the stored data, including sales, purchasing, inventory management, materials planning, invoice verification, finance, and human resources. Customer master A customer master contains key information that defines the business relationship between a company and its customer. Company code data controls the posting procedure and subsequent processing, such as payments and dunning. Sales organization data provides information on customers for support execution of such business processes as entering sales orders, shipping, billing, and processing payment. The customer master's “three-part structure” is represented by: 1. 2. 3.
General Data: This data is equally relevant to every company code and every sales organization within a company. Data for Company Codes: This data reflects company-specific agreements with the customer. Data for Sales: This data has different characteristics for a company’s sales organizations and channels.
The layout of customer master records also leaves room for special requirements.
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Figure 39: Master Data: Customer Master
Material Master The material master contains all of the key information a company needs to manage a material within its organization. The material master defines, among other things, how a product is sold, manufactured, purchased, inventoried, accounted, and costed. The information in the material master is grouped into views that are organized by business function. Note: The majority of the views in a material master are at plant level.
Figure 40: Master Data: Material Master
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Personnel File Personnel files are master data records used primarily by mySAP ERP Human Capital Management. These master records follow the same basic segmented structure, as do other master records. The organizational elements used by mySAP HCM are unique and, as a group, they are referred to as Organizational Management.
Figure 41: Master Data: Personnel Record
The functions of Organizational Management enable you to quickly and efficiently map your current organizational and reporting structure with its organizational objects - organizational units, jobs, positions, and tasks. Organizational Units describe the various business units that exist in your enterprise. Multiple organizational units and their relationships form the organizational structure. Organizational units can be loosely defined as functional or regional departments, or as project groups, depending on the type of organization. Jobs Jobs serve as descriptions, or templates, that apply to several positions with similar requirements, tasks, or other characteristics.
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Positions Positions are the individual employee assignments in the enterprise. Persons occupy positions. A position inherits a job’s characteristics, but you can also define additional characteristics specific to that position. Whereas positions are concrete and can be occupied by holders (for example, administrative assistant in the marketing department), jobs are general classifications of functions in an organization (for example, administrative assistant), that are defined by the characteristics assigned to them. Job descriptions apply to several different positions with similar characteristics. Persons Persons hold positions within the organizational structure. Persons represent employees in your company.
Transactions Transactions are application programs that execute business processes in the SAP system. Whenever possible, master data is copied during transaction processing, thus avoiding re-entry of data. For example, when executing the transaction Create Sales Order, the user must enter the customer master number; this copy is in all of the relevant customer information. Likewise, once the material master numbers are entered for the items being ordered, the relevant material data will be copied into the sales order. In addition, when performing each transaction, applicable organizational elements must be entered. For example, by specifying the sales organization information, the appropriate sales group is given credit for the sales activity; similarly, the designation of the plant/storage location determines product sourcing.
Figure 42: Transactions
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Whenever a transaction is executed in the system, a document is created. That document, a data record of the transaction, contains all of the relevant predefined information from the master data and organizational elements.
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Exercise 5: Display a Customer Master Exercise Objectives After completing this exercise, you will be able to: • Display a customer master record • Locate organizational information contained within a customer master record
Business Example As a customer service manager, you periodically need to view and maintain customer information. This information could be located in various places in the customer record.
Task: Locate a customer master record. Within the master record views find information related to the organization areas of: general data, sales, and company code. 1.
Using the information provided in the table, display the customer master record. Field
Data
Customer
Rohrer## (Rohrer AG Gr.##)
Company Code
1000 (IDES AG)
Sales Organization
1000 (Germany Frankfurt)
Distribution Channel
10 (Final Customer Sales)
Division
00 (Cross-division)
2.
Locate the following general data.
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Field
Data
Street/House number City Search Term 3.
Locate the following company code data. Hint: You will need to choose the Company Code Data icon from the application toolbar. Field
Data
Recon.account 4.
Locate the following sales area data. Hint: You will need to choose the Sales Area Data icon from the application toolbar. Field
Data
Shipping conditions Terms of payment
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Solution 5: Display a Customer Master Task: Locate a customer master record. Within the master record views find information related to the organization areas of: general data, sales, and company code. 1.
Using the information provided in the table, display the customer master record. Field
Data
Customer
Rohrer## (Rohrer AG Gr.##)
Company Code
1000 (IDES AG)
Sales Organization
1000 (Germany Frankfurt)
Distribution Channel
10 (Final Customer Sales)
Division
00 (Cross-division)
2.
a)
From the SAP Easy Access menu, choose Logistics → Sales and Distribution → Master Data → Business Partners → Customer → Display.
b)
Double-click
c)
Enter Customer: Rohrer##.
d)
Enter Company Code: 1000.
e)
Enter Sales Organization: 1000.
f)
Enter Distribution Channel: 10.
g)
Enter Division: 00.
h)
Choose Enter.
Complete..
Locate the following general data.
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Field
Data
Street/House number City Search Term
3.
a)
Choose the Address tab.
b)
Record the Street name in the table provided above: Waldstrasse 86–90.
c)
Record the City in the table provided above: Berlin.
d)
Record the Search term in the table provided above: SAP01.
Locate the following company code data. Hint: You will need to choose the Company Code Data icon from the application toolbar. Field
Data
Recon.account
4.
a)
Choose the Company Code Data icon.
b)
Choose the Account Management tab.
c)
Record the Recon. Account in the table provided above: 140000.
Locate the following sales area data. Hint: You will need to choose the Sales Area Data icon from the application toolbar.
Continued on next page
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Field
Data
Shipping conditions Terms of payment
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a)
Choose the Sales Area Data icon.
b)
Choose the Shipping tab.
c)
Record the Shipping conditions in the table provided above: 10 (immediately).
d)
Choose the Billing Document tab.
e)
Record the Terms of payment in the table provided above: ZB01.
f)
Choose
Exit .
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Exercise 6: Display a Material Master Exercise Objectives After completing this exercise, you will be able to: • Display a material master record • Locate various organizational and field-level information contained within the material master
Business Example As a new employee at your company, you need to become familiar with the materials in your company's system.
Task: Locate various organizational and field-level information contained within the material master record. 1.
Using the information provided in the table, display the material master record. Hint: You will be required to enter or select information in several screens before you can access the material record. Field
Data
Material
578
View
Basic Data 1
View
Sales:
View
Plant Stock
Plant
1200
Org.Data 1
Dresden Sales Organization
1000 Germany Frankfurt
Distr. Channel
10 Final customer sales
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2.
SAP01
As a new user you need to locate the specific Field information listed in the table below. Confirm the data by entering the information in the Data column of the table provided. Hint: The data is located on several tabs. The tab names are provided in the table listed below under the View column header.
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View
Field
Basic data 1
Material Description
Basic data 1
Base Unit of measure
Basic data 1
Net weight
Basic data 1
Material group
Sales: Org Data 1
Division
Sales: Org Data 1
Delivering plant
Plant Stock
Plant
Plant Stock
Unrestr.-use stock (plant stocks in the current period)
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Data
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Lesson: System-Wide Concepts
Solution 6: Display a Material Master Task: Locate various organizational and field-level information contained within the material master record. 1.
Using the information provided in the table, display the material master record. Hint: You will be required to enter or select information in several screens before you can access the material record. Field
Data
Material
578
View
Basic Data 1
View
Sales:
View
Plant Stock
Org.Data 1
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Field
Data
Plant
1200 Dresden
Sales Organization
1000 Germany Frankfurt
Distr. Channel
10 Final customer sales
a)
From the SAP Easy Access menu, choose Logistics → Materials Management → Material Master → Material → Display.
b)
Choose
c)
Enter Material: 578.
d)
Choose Select view(s).
e)
Select the Basic Data 1 view.
f)
Select the Sales: Org. Data 1 view.
g)
Select the Plant Stock view.
h)
Choose
Display Current.
Continue / Enter. Hint: A new dialog box appears requesting organizational elements.
i)
Enter Plant: 1200.
j)
Enter Sales org.: 1000.
k)
Enter Distr. channel: 10.
l)
Choose
Continue / Enter. Hint: The material master record now displays. You should be on the Basic Data 1 tab.
Continued on next page
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2.
As a new user you need to locate the specific Field information listed in the table below. Confirm the data by entering the information in the Data column of the table provided. Hint: The data is located on several tabs. The tab names are provided in the table listed below under the View column header. View
Field
Basic data 1
Material Description
Basic data 1
Base Unit of measure
Basic data 1
Net weight
Basic data 1
Material group
Sales: Org Data 1
Division
Data
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View
Field
Sales: Org Data 1
Delivering plant
Plant Stock
Plant
Plant Stock
Unrestr.-use stock (plant stocks in the current period)
Data
a)
Record the Description in the table provided above: Sunny Sunny.
b)
Record the Base unit of measure in the table provided above: PC.
c)
Record the Net Weight in the table provided above: 16.8 kg.
d)
Record the Material group in the table provided above: 00207.
e)
Choose Enter. Hint: You are now viewing the Sales Org Data 1 tab.
f)
Record the Division in the table provided above: 07 High Tech .
g)
Record the Delivering Plant in the table provided above: 1200.
h)
Choose
Enter. Hint: You are now viewing the Plant stock tab.
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i)
Record the Plant in the table provided above: 1200.
j)
Record the (plant stocks in the current period) Unrestr.-use stock in the table provided above : 500.
k)
Choose
Exit.
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Lesson: System-Wide Concepts
Exercise 7: Create a Sales Quotation Exercise Objectives After completing this exercise, you will be able to: • Create a sales quotation to reinforce your understanding of transactional data
Business Example As a new employee, one of your jobs will be to create sales quotations.
Task: Create a sales quotation 1.
Using the information provided in the table, create a sales quotation. Record your document number in the table. Field
Data
Quotation Type
QT (Quotation)
Sales Organization
1000 (Germany Frankfurt)
Distribution Channel
10 (Final Customer Sales)
Division
00 (Cross-division)
Sold-to party
Rohrer##
Ship-to party
Rohrer##
PO number
SWC-##
customer's PO number) Valid from
Material
578
Order quantity
10
Sale Quotation Document
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Solution 7: Create a Sales Quotation Task: Create a sales quotation 1.
Using the information provided in the table, create a sales quotation. Record your document number in the table. Field
Data
Quotation Type
QT (Quotation)
Sales Organization
1000 (Germany Frankfurt)
Distribution Channel
10 (Final Customer Sales)
Division
00 (Cross-division)
Sold-to party
Rohrer##
Ship-to party
Rohrer##
PO number
SWC-##
customer's PO number) Valid from
Continued on next page
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Field
Data
Material
578
Order quantity
10
Sale Quotation Document
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a)
From the SAP Easy Access menu, choose Logistics → Sales and Distribution → Sales → Quotation.
b)
Double-click
c)
Enter Quotation Type: QT.
d)
Enter Sales Organization: 1000.
e)
Enter Distribution Channel: 10.
f)
Enter Division: 00.
g)
Choose Enter.
h)
Enter Sold-to party: Rohrer##.
i)
Enter Ship-to party: Rohrer##.
j)
Enter PO number: SWC-##.
k)
Enter Valid from: .
m)
Enter Material: 578.
n)
Enter Order quantity: 10.
o)
Choose
p)
Choose Save and record the document number in the table provided above.
q)
Choose
Create..
Enter.
Exit to exit the screen.
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Lesson Summary You should now be able to: • State the purpose of an organizational element in the SAP system • Explain the purpose of master data in the SAP system • Explain the purpose of transactions in SAP training • Explain the use of IDES
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Unit Summary
Unit Summary You should now be able to: • State the purpose of an organizational element in the SAP system • Explain the purpose of master data in the SAP system • Explain the purpose of transactions in SAP training • Explain the use of IDES
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Test Your Knowledge
Test Your Knowledge 1.
Organizational elements define a company's enterprise structure within the SAP system either for legal and/or business-related purposes. Determine whether this statement is true or false.
□ □ 2.
True False
Which of the following are examples of organizational elements? Choose the correct answer(s).
□ □ □ □ □ 3.
A B C D E
Company Code Client Plant All of the above None of the above
Which of the following is a true statement about master data? Choose the correct answer(s).
4.
□
A
□ □ □
B C D
Created centrally and available to all applications and all authorized users Decreases data redundancy Organized into views that are assigned to organizational elements All of the above
Name the two types of master data discussed in this lesson. Choose the correct answer(s).
□ □ □ □ 5.
A B C D
Plant and customer Material and customer Material and storage location None of the above
Which of the following is a true statement about customer master data? Choose the correct answer(s).
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□
A
□
B
□
C
□
D
Contains key information that defines the business relationship between a company and its customer Contains material-specific parameters that support execution of business processes Must be created for each company that plans to sell to that customer None of the above
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Transactions are application programs that execute business processes in the SAP system. Determine whether this statement is true or false.
□ □ 7.
True False
What is created in the system each time a transaction is executed? Choose the correct answer(s).
□ □ □ □ □
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A B C D E
Report Log Document Inventory None of the above
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Test Your Knowledge
Answers 1.
Organizational elements define a company's enterprise structure within the SAP system either for legal and/or business-related purposes. Answer: True A company’s enterprise structure is mapped to the SAP applications using organizational elements. Organizational elements are the mechanism for defining a company’s enterprise structure within the SAP system either for legal and/or business-related purposes.
2.
Which of the following are examples of organizational elements? Answer: D Organizational elements include legal company entities, plants, storage locations, sales offices, and profit centers, and may be assigned to a single application (such as sales organization is assigned to sales order management), or to several applications (such as plant to procurement and production planning).
3.
Which of the following is a true statement about master data? Answer: D Integrating all of the corresponding data (such as customer and material) into one single database object means that the problem of data redundancy is not an issue and data integrity is enhanced. All areas can use the stored data, including sales, purchasing, inventory management, materials planning, invoice verification, and so on.
4.
Name the two types of master data discussed in this lesson. Answer: B A customer master contains key information that defines the business relationship between a company and its customer. A material master contains all of the key information a company needs to manage a material within its organization.
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Which of the following is a true statement about customer master data? Answer: A The customer master contains key information that defines the business relationship between a company and its customer. These customer-specific parameters support execution of business processes.
6.
Transactions are application programs that execute business processes in the SAP system. Answer: True Transactions are application programs that execute business processes in the SAP system. Whenever possible, master data is copied during transaction processing, thus avoiding re-entry of data.
7.
What is created in the system each time a transaction is executed? Answer: C Whenever a transaction is executed in the system, a document is created. This document provides a data record of the transaction and contains all of the relevant predefined information from the master data and organizational elements.
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Unit 4 Logistics Unit Overview This unit will provide you with an overview of the various logistics processes covered by the mySAP Business Suite.
Unit Objectives After completing this unit, you will be able to: • • • • • • • • • • • • • • • •
2006/Q2
Discuss the various key operational processes Illustrate the integration between the key operational processes Outline the tasks associated with sales order management Explain how SAP within mySAP ERP supports the key processes in sales order management Outline the tasks associated with the customer relationship management process Explain how SAP supports the key processes in customer relationship management with the mySAP CRM application Outline the tasks associated with production planning and manufacturing execution Explain how mySAP ERP supports key processes in production Outline the tasks associated with the supply chain management process Explain how SAP within the mySAP SCM application supports the key processes in supply chain management Explain how SAP SCM integrates with other components and systems Outline the tasks associated within the procurement cycle Explain how SAP within mySAP ERP supports the key processes in Procurement Outline the tasks associated with the supplier relationship management process Explain how SAP within the mySAP SRM application supports the key processes in supplier relationship management Explain how SAP SRM integrates with other components and systems
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• •
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Outline the tasks associated with processes supporting sales order management, production, procurement, and product lifecycle management Explain how mySAP ERP and mySAP PLM support the key processes in product lifecycle management
Unit Contents Lesson: Logistics Overview ...................................................127 Lesson: Sales Order Management ..........................................131 Exercise 8: Create a Sales Order ........................................141 Exercise 9: Create a Delivery.............................................145 Exercise 10: Create a Sales Order Billing Document .................151 Lesson: Customer Relationship Management ..............................155 Lesson: Production ............................................................171 Exercise 11: Production ...................................................179 Exercise 12: Production of a make-to-order product ..................189 Lesson: Supply Chain Management .........................................204 Lesson: Procurement ..........................................................215 Exercise 13: Create a Purchase Order for a Stock Material..........223 Exercise 14: Create a Goods Receipt by Referencing a Purchase Order .........................................................................227 Exercise 15: Post an Invoice Using Logistics Invoice Verification ...231 Lesson: Supplier Relationship Management ...............................235 Lesson: Additional Processes and Product Lifecycle Management .....245 Exercise 16: Maintaining Materials with the Product Structure Browser ......................................................................267
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Lesson: Logistics Overview
Lesson: Logistics Overview Lesson Overview In this lesson you will be presented with an overview of various key operational processes and an example of how these key processes integrate.
Lesson Objectives After completing this lesson, you will be able to: • •
Discuss the various key operational processes Illustrate the integration between the key operational processes
Business Example IDES has a big range of products, which are produced and sold all over the world. As a member of the IDES team, you want to gain an understanding of the different key operational processes needed around your daily operations.
Key Operational Activities Production, sales, and procurement are different key operational processes often handled in different functional departments, but each of these key processes triggers activities in the other processes. As an example, production might be started by a sales orders or by an independent demand plan; procurement needs are triggered by a need from production planning or due to the sell of stocked products, and so on. These processes can happen independently of each other or as a group. Depending on a company's requirements, their products, and their processes, certain operational activities may play very different roles with very different priorities. In addition, several accompanying processes, for example Quality Management, can be very important. Sometimes even more important than, for example, an actual sales process.
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Figure 43: Key Operational Activities
All of these processes needed by a company are part of the mySAP ERP solution. Sales, Procurement, and Production are considered to be the primary operational activities. Secondary activities might include Quality Management, Plant Maintenance, Customer Service, and Warehouse Management. Of course, the process importance is determined by a company’s needs. All of the key operational processes integrate with each other and can be running within one central ERP system. Not only do these logistical processes integrate with each other, but they also integrate with mySAP ERP Financials and mySAP ERP Human Capital Management.
Enhancing processes with mySAP Business Suite The operational processes delivered through mySAP ERP can be extended with the solutions included in mySAP Business Suite. For example, a company might want to optimize and centralize their production planning processes by using mySAP SCM. Another company might want to expand their marketing and sales capabilities by using mySAP CRM. The “basic” processes can be improved and enhanced with additional features through components added through specific solutions.
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Lesson: Logistics Overview
Figure 44: Logistic Processes in mySAP Business Suite
Take, for example, production as part of mySAP ERP and mySAP SCM. In mySAP ERP, the complete production process is covered, starting from the planing of sales and demands, through the creation of planned production order until the final production steps. The processes in planning here follow the “MRPII” concept, where material planning has priority and where capacity planning and scheduling are separate and subsequent features. Boundary conditions and capacities require subsequent work. SAP SCM as a component delivered with mySAP SCM, therefore, includes the features of an “Advanced Planning System” (APS). Materials and capacities are planned simultaneously, including a possible optimization. In addition, for example, a sales plan can be published to external partners to see if the planning is realistic. The actual production process itself is still part of the ERP system. That means that mySAP SCM does not replace mySAP ERP, but offers additional and optimized features through additional components.
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Lesson Summary You should now be able to: • Discuss the various key operational processes • Illustrate the integration between the key operational processes
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Lesson: Sales Order Management
Lesson: Sales Order Management Lesson Overview In this lesson you will gain an understanding of the Sales Order processes and how Sales Order Management is integrated within other solutions.
Lesson Objectives After completing this lesson, you will be able to: • •
Outline the tasks associated with sales order management Explain how SAP within mySAP ERP supports the key processes in sales order management
Business Example Your company, IDES, is selling products to various customers. Timely handling and delivery of sales orders is key to their business success.
Sales Order Process Overview mySAP ERP provides superior insight into sales back-office processes, including: inquiries, quotations, order generation, contract, and billing cycle management. Businesses benefit from a complete overview of the customer life cycle, including order status, billing, payment, and credit management. In addition to the back-office features, mySAP ERP also supports Internet sales, sales entered through mobile devices such as handhelds, and basic call center functionality. The Sales Order Processing (or order to cash) scenario describes the complete process, starting with pre-sales activities, moving to the creation of the sales order, continuing with the sales order fulfillment, and ending with the invoicing of the sales order and the parallel process of the creation of the posting in financial accounting. The basic sales order processing cycle for a service or material consists of the following phases: Pre-Sales Activities Pre-sales activities can be inquiries or quotations entered in the system. These can then be used as reference during the creation of a sales order. Sales Order Creation and Availability Check The sales order can adopt information from the pre-sales documents (a quotation or an inquiry). Sales scheduling agreements or sales contracts (long-term sales agreements) can also be created with reference to a sales order and are supported by the sales process steps.
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During the creation of the sales order, the availability of the material can be checked to confirm the customer's requested delivery date.
Figure 45: Sales Order Management
Delivery and Goods Issue An outbound delivery is the basis for a process when the goods are physically moved as well as for the posting of the goods issue. Picking can be fulfilled through the use of the Warehouse Management system and transportation can be planned and carried out. Billing As the final step in the sales process, an invoice is issued, which must also be reflected in accounting.
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Lesson: Sales Order Management
Sales Order During sales order creation, the system can carry out basic functions: • • • • • • •
Monitoring sales transaction Checking for availability Transferring requirements to material requirements planning (MRP) Scheduling delivery Calculating pricing and taxes Checking credit limits Creating printed or electronically transmitted documents
Figure 46: Sales Order
Depending on how the system is configured, these basic functions may be completely automated or may require some manual processing. The data resulting from these basic functions (for example, shipping dates, confirmed quantities, prices, and discounts) is stored in the sales document. The resulting data can be displayed by a user and, in some cases during subsequent processing, manually changed by the user.
Delivery Shipping is an important part of the logistics chain.
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In shipping processing, all delivery procedure decisions can be made at the start of the process by: • • •
Taking into account general business agreements with your customer Recording special material requests Defining shipping conditions in the sales order
The result is an efficient and largely automatic shipping process in which manual changes are necessary only under certain circumstances.
Figure 47: Delivery and Goods Issue
Shipping Functions
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The shipping module supports the following functions, which include but are not limited to: • • • • • • • • • •
Deadline monitoring for reference documents due for shipment (sales orders and purchase orders, for instance) Creating and processing outbound deliveries Packing deliveries Information support for transportation planning Supporting foreign trade requirements Printing and transmitting shipping documents Processing goods issue Deliveries currently in process Activities that are still to be carried out Identifying possible bottlenecks
The most commonly used document used to support delivery processed is the Outbound Delivery document. In its role as central object of the goods issue process, outbound delivery supports all shipping activities, including picking, packing, transportation, and goods issue. During the outbound delivery process, shipping-planning information is recorded, status of shipping activities is monitored, and data accumulated during shipping processing is documented. When the outbound delivery is created, the shipping activities, such as picking or delivery scheduling, are initiated, and data that is generated during shipping processing is included in the delivery. Range of Functions An outbound delivery can be created as follows: • • • • •
With reference to a sales order With reference to a stock transport order With reference to a subcontract order With reference to a project Without any reference
Depending on your requirements, you can create outbound deliveries automatically or manually using worklists. You can make agreements with your customers for complete and partial deliveries and for order combinations. Outbound deliveries can be combined to form a single group of deliveries. A variety of warehouse and sales overview reports allow you to monitor created outbound deliveries and outstanding sales activities. Picking the Delivery The picking process involves taking goods from a storage location and staging the goods in a picking area where the goods will be prepared for shipping.
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Picking Functions System settings will allow picking to be carried out: • • •
Automatically (during outbound delivery creation) Routinely (at certain times) Manually (via an employee request)
A picking status is recorded in each delivery item for the purpose of scheduling and monitoring. This status indicates where the item is in the picking procedure. In the system standard settings, it is a prerequisite for a goods issue to be posted, that the items that are relevant, have been picked. Therefore, a delivery quantity must equal a picking quantity in the outbound delivery. The Warehouse Management system (WM) is fully integrated in the Logistics Execution System (LES). For example, you can create a Warehouse Management transfer order directly from the outbound delivery. The current status of the Warehouse Management process can also be monitored from the delivery or from the sales order. Goods Issue Posting Functions The outbound delivery forms the basis of goods issue posting. The data required for goods issue posting is copied from the outbound delivery into the goods issue document, which cannot be changed manually. Any changes must be made in the outbound delivery itself. After goods issue is posted for an outbound delivery, the scope for changing the delivery document becomes very limited. This prevents any discrepancies between the goods issue document and the outbound delivery. In this way, you can be sure that the goods issue document is an accurate reflection of the outbound delivery. When you post goods issue for an outbound delivery, the following functions are carried out: • • • • • • •
Warehouse stock of the material is reduced by the delivery quantity Value changes are posted to the balance sheet account in inventory accounting Requirements are reduced by the delivery quantity The serial number status is updated Goods issue posting is automatically recorded in the document flow Stock determination is executed for the vendor's consignment stock A worklist for the proof of delivery is generated
You can post goods issues in the following ways: • • •
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Automatically (during outbound delivery creation) Routinely (at certain times) Manually (via an employee request)
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Billing Billing represents the final processing stage for a business transaction in sales order processing. Information on billing is available at every stage of order processing and delivery processing. Billing functions include: • • • • • •
Creation of invoices based on deliveries or services Issue of credit and debit memos and pro forma invoices Cancelling billing transactions Comprehensive pricing functions Issue rebates Transfer billing data to financial accounting
Figure 48: Billing
Like all parts of sales order processing in mySAP ERP, billing is integrated into the organizational structures. Thus, you can assign the billing transactions a specific sales organization, a distribution channel, and a division. Because billing has an interface to financial accounting, the organizational structures of the accounting department (the company codes as well as the sales organizations assigned to the company codes) are important. During a billing processing it is possible for you to create, change, and delete billing documents.
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It is possible to create billing documents: • • • • • • • • •
With reference to a sales order document With reference to a delivery document With reference to external transactions By having the system automatically process a billing due list as a background task By manually processing from a worklist By creating a billing document explicitly By combining several sales order documents into a collective billing document By billing one or more sales order documents with several billing documents (this is called an invoice split) By creating an individual billing document for every sales document
Billing and Financial Accounting The system automatically posts the amounts to the appropriate accounts by means of account determination. Costs and revenue can be posted to the following accounts: • • • • • • •
Customer accounts receivable General ledger (for example, a cash clearing account) Revenue Sales deductions Accruals (for rebate agreements) Accrual account Accrual clearing account
Document Flow The sales documents you create are individual documents, but they can also form part of a chain of interrelated documents. For example, you may record a customer’s telephone inquiry in the system. The customer next requests a quotation, which you then create by referring to the inquiry. The customer later places an order on the basis of the quotation and you create a sales order with reference to the quotation. You ship the goods and bill the customer. All of these separate documents reference one another through document flow.
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Figure 49: Document Flow
After delivery of the goods, the customer claims credit for some damaged goods and you create a free-of-charge delivery with reference to the sales order. The entire chain of documents – the inquiry, the quotation, the sales order, the delivery, the invoice, and the subsequent delivery free of charge – creates a document flow, or history. The flow of data from one document into another reduces manual activity and makes problem resolution easier.
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Exercise 8: Create a Sales Order Exercise Objectives After completing this exercise, you will be able to: • Create a sales order
Business Example A customer has faxed a sales order and it is your job, as a customer service representative, to enter the order into your system.
Task: Create a sales order. 1.
Using the information provided in the table, create a standard order. Field
Data
Order Type
OR (Standard order)
Sales organization
1000 (Germany Frankfurt)
Distribution channel
10 (Final customer sales)
Division
00 (Cross-division)
2.
Using the information provided in the table, continue creating the order. Record the sales order document. Field
Data
Sold-to party
Rohrer## (Rohrer AG Gr.##)
Purch. order no.
Group—##
Req. deliv.date
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Field
Data
Material
R-F2## (Pump)
Order quantity
10
Sales order
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Solution 8: Create a Sales Order Task: Create a sales order. 1.
Using the information provided in the table, create a standard order. Field
Data
Order Type
OR (Standard order)
Sales organization
1000 (Germany Frankfurt)
Distribution channel
10 (Final customer sales)
Division
00 (Cross-division)
2.
a)
From the SAP Easy Access menu, choose Logistics → Sales and Distribution → Sales → Order.
b)
Choose
c)
Enter Order Type: OR.
d)
Enter Sales Organization: 1000.
e)
Enter Distribution Channel: 10.
f)
Enter Division: 00.
g)
Choose Enter.
Create.
Using the information provided in the table, continue creating the order. Record the sales order document. Field
Data
Sold-to party
Rohrer## (Rohrer AG Gr.##)
Purch. order no.
Group—##
Req. deliv.date
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Field
Data
Material
R-F2## (Pump)
Order quantity
10
Sales order a)
Enter Sold-to party: Rohrer##.
b)
Enter Purch. order no.: Group-##.
c)
Choose
Enter. Hint: Make sure you are on the Sales tab on the order entry screen.
d)
Enter Req. deliv.date: .
e)
Choose
f)
Enter Material: R-F2##.
g)
Enter Order quantity: 10.
h)
Choose
Enter.
Enter. Hint: If an information dialog box appears, choose Enter to confirm that you have read the information.
i)
Choose Save and record the document number in the table provided. Hint: The system displays a message that the sales order has been saved with the sales document number. This number appears on the status bar on the bottom left-hand corner of the order window.
j)
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Choose menu.
Exit to exit the screen and return to the SAP Easy Access
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Lesson: Sales Order Management
Exercise 9: Create a Delivery Exercise Objectives After completing this exercise, you will be able to: • Create a delivery document with reference • Post the inventory goods issue with reference • View Document Flow
Business Example You have been notified that your customer's order is ready to ship.
Task: Create a delivery document with reference to your customer's order. Post the delivery document in the system.Verify that the shipping documents were processed by using the sales document flow. Note: This exercise uses the sales order number created in the previous exercise. 1.
Using the information provided in the table, create a delivery document. Record the delivery document number. Field
Data
Order
If necessary, this order number can be found by searching for Purchase order no. Group-##
Shipping point
1000 (Shipping Point Hamburg)
Selection Date
Delivery 2.
Post the goods issue for the delivery and view the document flow. Record your findings in the table provided.
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Document
Document number
Status
Standard order Delivery WMS transfer order GD goods issue
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Solution 9: Create a Delivery Task: Create a delivery document with reference to your customer's order. Post the delivery document in the system.Verify that the shipping documents were processed by using the sales document flow. Note: This exercise uses the sales order number created in the previous exercise. 1.
Using the information provided in the table, create a delivery document. Record the delivery document number.
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Field
Data
Order
If necessary, this order number can be found by searching for Purchase order no. Group-##
Shipping point
1000 (Shipping Point Hamburg)
Selection Date
Delivery a)
From the SAP Easy Access menu, choose Logistics → Sales and Distribution → Shipping and Transportation → Outbound delivery → Create → Single Document.
b)
Choose With Reference to Sales Order.
c)
Enter Shipping point: 1000.
d)
Enter Selection date: .
e)
If needed, enter the Order: . Note: The sales order number should default. Hint: You can locate the sales order number in the system by using the matchcode F4 to search for the sales order by the Purchase order no.: Group-##.
2.
f)
Choose
g)
Save. Record the delivery document number in the table Choose provided.
Enter.
Post the goods issue for the delivery and view the document flow. Record your findings in the table provided.
Continued on next page
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Document
Document number
Status
Standard order Delivery WMS transfer order GD goods issue a)
From the SAP Easy Access menu, choose Logistics → Sales and Distribution → Shipping and Transportation → Outbound delivery → Change.
b)
Choose Single Document. Hint: The delivery document number should default.
c)
Choose the Post goods issue icon from the application toolbar. Hint: The document will be saved and the posting performed. This is indicated by the message in the message status bar. Hint: Do not back out of the Change Outbound Delivery screen!
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d)
Choose above.
Document flow. Record the documents in the table provided
e)
Choose
Exit to exit the screen.
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Exercise 10: Create a Sales Order Billing Document Exercise Objectives After completing this exercise, you will be able to: • Create a billing document with reference
Business Example The customer received the ordered materials. Bill your customer by sending him an invoice.
Task: Create a billing document. Verify that the billing document was created by using the sales document flow. 1.
Using the outbound delivery document created in the previous exercise, create a billing document.
2.
Display the document flow and record your findings in the table provided. Document
Document number
Status
Standard order Delivery Invoice Accounting Document
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Solution 10: Create a Sales Order Billing Document Task: Create a billing document. Verify that the billing document was created by using the sales document flow. 1.
Using the outbound delivery document created in the previous exercise, create a billing document. a)
From the SAP Easy Access menu, choose Logistics → Sales and Distribution → Billing → Billing Document.
b)
Choose
c)
Check the Document number.
Create.
Hint: Your delivery document number should default so a user entry is not required. d)
Choose
Save. Hint: The document will be saved and the posting performed. This is indicated by the message in the message status bar.
e) 2.
Choose menu.
Exit to exit the screen and return to the SAP Easy Access
Display the document flow and record your findings in the table provided.
Continued on next page
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Document
Document number
Status
Standard order Delivery Invoice Accounting Document a)
From the SAP Easy Access menu, choose Logistics → Sales and Distribution → Billing → Billing Document.
b)
Choose
Display. Hint: Your delivery document number should default, so a user entry is not required. Hint: You do not have to enter the document to view the document flow.
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c)
Choose Display Document flow from the Application toolbar. Record your findings in the table provided.
d)
Choose menu.
Exit to exit the screen and return to the SAP Easy Access
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Lesson Summary You should now be able to: • Outline the tasks associated with sales order management • Explain how SAP within mySAP ERP supports the key processes in sales order management
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Lesson: Customer Relationship Management
Lesson: Customer Relationship Management Lesson Overview In this lesson you will receive an overview of the mySAP Customer Relationship Management solution.
Lesson Objectives After completing this lesson, you will be able to: • •
Outline the tasks associated with the customer relationship management process Explain how SAP supports the key processes in customer relationship management with the mySAP CRM application
Business Example Your company, IDES, wants to give customers a number of contact options. They want to set up central customer management and are interested in implementing mySAP Customer Relationship Management.
Customer Relationship Management Nothing is more frustrating for a salesperson than not closing a deal because the necessary information was not available. What has the customer already bought? How profitable is the customer? Can we deliver the required quantity? Nothing is more frustrating for customers than having to deal with a company that does not meet their needs. Only satisfied customers will return in the future. Customer relationship management has become a decisive success factor. The challenge for large companies is to promote a local store mentality throughout all departments and all employees.
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Figure 50: mySAP CRM
Customer relationship management (CRM) is the concept of making the customer the focus of a company and its business processes. It must be implemented as the primary company philosophy and the strategies it promotes have to be adopted within the company. The aim of all corporate activities must be to place customers at the center, and not view them as the means to an end (just to increase turnover). The principles of customer relationship management must predominate at all levels of the company. CRM is intended to create and build upon long-term relationships with customers during all phases of the business relationship. The phases of a customer relationship include: • • • •
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Approaching possible customers: A customer is interested in the company and its products (first contact). Gaining the customer: The customer has a concrete intention to buy and the company receives an order. Service: The company does everything to ensure that the customer is satisfied with the product or service purchased. Keeping the customer: Specific and attentive customer support ensures that the customer is both a satisfied and loyal customer. The customer will remain true to your company, even if a competitor offers a similar product at a reduced rate.
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Figure 51: Customer Relationship Management
The idea of customer relationship management is not new; local stores have always acted in this way. As long as they were engaged in business with their customers, they maintained relationships with these customers. The owners of local stores know their customers well and are well acquainted with their particular needs and desires. They know which products to offer to which customers and when, in order to ensure a successful sale. The local store owners also know when to give a customer's child a lollipop on their birthday. The challenge for large-scale enterprises is to transfer this local store mentality to their company. Why should they do this? The Internet has changed our lives and the competition is now only a mouse-click away. Nowadays, customers expect all channels of business communication to be fully integrated. Whatever channel of communication customers may be using, they expect real service all the time, wherever they are. If one company does not offer this service, the customers simply go to a competitor. Companies need to rethink: Maintaining customer relationships has become a decisive success factor. The solution is mySAP CRM. mySAP CRM covers not only traditional sales processes. SAP Customer Relationship Management (SAP CRM), the cornerstone of SAP's Customer Relationship Management solution (mySAP CRM), provides companies with the customer-centric solutions they need to land, build, and maintain profitable customer relationships. SAP CRM drives closed-loop customer interactions through all phases of the relationship lifecycle: engage, transact, fulfill, and service. SAP CRM supports all relevant channels: mobile, telephony, and the Internet. SAP CRM drives customer relationships in all CRM business dimensions: operational, analytical, and collaborative. Traditional direct sales
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Typically, information within a company is not usefully collected. When information is passed on, it is often incomplete or inaccurate. Employee turnover means that vital customer information is often lost. Traditional direct sales is characterized by decentralized information about the customer. In some cases, only one employee has knowledge about the customer and the relevant contact information.
Figure 52: Traditional Knowledge
Direct Sales Using mySAP CRM mySAP CRM allows every employee who needs information about customer contacts to access all relevant information immediately. Field Sales and Field Services enable field representatives to access ALL contact information in the field using a laptop or other mobile devices. Analyzing this information gives the company a deeper understanding of its customers. As a result, the company can increase its service package, process queries faster, strengthen relationships, and benefit from increased customer loyalty.
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Figure 53: Knowledge with mySAP CRM
Departments of an Enterprise Driving Customer Interactions During the different phases of customer interaction, various departments of a company have to deal with the customer. This is reflected in the key capabilities of mySAP CRM.
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Figure 54: Key Capabilities of mySAP CRM
Marketing Marketing in mySAP CRM includes the entire marketing process for extensive customer engagement. It delivers the critical capabilities of marketing planning, campaign management, e-marketing, lead management, marketing analytics, and customer segmentation in an easy, intuitive, and configurable interface. Initiatives can be designed and executed to meet specific corporate objectives – with associated KPIs defined and measured to ensure bottom-line results. Marketing planning Plan all marketing activities at the enterprise, regional, field, product, or brand level to ensure success. Campaign management Design, optimize, execute, and manage all communications across the organization. Lead management Collaborate internally and with partners to qualify, transfer, and track leads, and to eliminate the time spent on poor leads. Closed-loop marketing analytics Give your marketing professionals full visibility into the organization to improve the planning, monitoring, and measuring of marketing initiatives. Customer segmentation Develop highly targeted marketing segments without the need for IT involvement. Personalization
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Offer the right products to the right customers at the right time. Trade Promotion Management Support both strategic and tactical marketing, including total sales volume planning. Implement, validate, and analyze sales-promotion tactics, such as features, displays, and temporary price reductions.
Sales Sales spans all customer sales channels, ensuring seamless, scalable customer transactions. It supplies organizations with Enterprise Sales, Telesales, Field Sales and E-Selling solutions to transact with customers anytime, anywhere. Sales planning and forecasting Report on and analyze all sales planning and forecasting activities. Organizational and territory management Define territories based on size, revenue, geography, products, product lines, and strategic accounts. Assign sales representatives for each territory and identify the prospects and products associated with each territory. Account and contact management Capture, monitor, store, and track all critical information about customers, prospects, and partners. Activity management Schedule and manage simple and complex tasks. Opportunity management Give your channels complete visibility into each sales opportunity, so they can capture, manage, and monitor business contacts and account information. Quotation and order management Configure, price, and create quotes for customers, and generate follow-up activities, such as sales orders. Contract management Work with customers to develop and revise customized contracts and long-term purchasing agreements. Incentive and commission management Develop, implement, and manage compensation plans. Track current performance, and measure the potential compensation of sales in the pipeline.
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Service Service in mySAP CRM offers consolidated, operational insight enabling unparalleled service and fulfillment appropriately matched to customer revenue potential. It equips organizations with capabilities in the areas of Customer Service and Support, E-Service, Service Operations Management and Field Service. Multichannel service Deliver customer service through preferred channels, such as field representatives, interaction centers, partners, or the Internet. Customer service and support Manage and fulfill commitments to customers and partners through efficient service planning and execution. Connect the entire service process -- from initial customer contact to final resolution and financial settlement. Resource planning and optimization Plan long-term resource strategies and optimize short-term scheduling tactics. Schedule on-site service engagements and identify resource requirements based on product forecasts, planned services, and geographic product placements. Service operations management Support single- and multi-tiered service operations, including tactical and strategic service planning, service administration, transactional support, and operational and financial analytics. Service planning and forecasting Establish service plans and forecasts that proactively maintain products for optimum performance, and ensure the availability of resources. Professional services Meet current and future client-centric business needs with tools to manage projects, resources, opportunities, and engagements.
One Face to the customer The aim of CRM as a company philosophy is to “speak to the customer with one voice”. No matter what channel of communication customers use to contact your company, they always receive the same information. All employees who have customer contact need to be informed about all previous customer contacts that took place using all channels of communication. mySAP CRM incorporates both tasks and contact channels. It covers all business tasks related to sales, service, and marketing using the Internet, interaction center, and field applications. This results in the mySAP CRM solution matrix. The
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mySAP CRM solution guarantees the full integration of all tasks and channels of communication. All employees in the company are informed of contact with customers, and customers are served equally well by all employees at all times.
Customer Interaction Channels There are three basic channels of communication with the customer that are used in traditional sales and distribution, as well as in the new business concepts of mySAP CRM.
Figure 55: Customer Interaction Channels
Field applications are used for the traditional direct contact between the employees of a company and a customer, where sales or service representatives meet personally with a customer. The Interaction Center (IC) is a central communication hub for all telephone-based customer contact. As in a traditional call center, employees in different departments receive customer calls, process inquiries, and create orders. The interaction center can also be used as a help desk resource. This results in a central processing point for all customer-related information. The IC can operate independently of the contact medium, which could be telephone, e-mail, fax, text messaging, and so on. The Internet is used to buy and sell products to customer contacts with Internet connections (“E-Commerce”). There are two different areas in which the Internet is used to buy and sell products: • •
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B2C – Business to consumer: Internet business directly with end customers B2B – Business to business: Internet business between two companies
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Channel Partners One new communication channel is indirect contact through partners by the use of Channel Management. Key channel management functions of mySAP CRM include: Partner management and analytics Measure, monitor, and manage channel relationships throughout the partner life cycle and gain a better understanding of your partners, including their products and customers. Channel marketing Give your channel partners the information, branding, and incentives they need to drive demand, while supporting collaborative marketing and demand generation activities. Channel sales Provide your partners and your direct sales force with the same knowledge, tools, and expert advice. Plus, gain full visibility into customer account information and buying histories across all selling channels so you can forecast future business more effectively. Channel service Help your partners deliver immediate, personalized, and effective service to every customer, and provide the tools to manage ongoing service relationships. Channel Commerce Include partners in your e-commerce strategies by supporting collaborative selling across organizational boundaries. Enable customers to order products and services across your entire demand network.
SAP CRM On-Demand Solutions SAP Customer Relationship Management on-demand solutions: SAP's family of hosted CRM solutions that make it easy to start on the road to a customer-centric enterprise, and to transition and grow to our on-premise mySAP CRM solution at your own pace.
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Figure 56: CRM on-demand
SAP CRM on-demand solutions provide easy-to-use, Web-based access to proven and reliable CRM sales functionality -- developed in partnership with more than 3,000 SAP customers -- and a seamless growth path to market-leading mySAP CRM as your business needs evolve.
Features and Functions The family of SAP CRM on-demand solutions meet the specific needs of business professionals, managers, executives, and administrators. These solutions include features and functions to support core customer-facing processes for Sales force automation: Make sales reps more productive, managers more effective, and executives better equipped to make quick, informed decisions with the SAP Sales on-demand solution. Opportunity management Manage your sales cycle more effectively and predictably -- with a lower cost of sales. Gain full visibility into your opportunity pipeline to forecast accurately, improve team communications, and distribute leads to the appropriate sales representatives. Adapt sales-assistant functionality to your sales methodology to provide real-time, step-by-step guidance, help standardize best practices across your organization, and improve your win rate. Sales reporting and forecasting
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Monitor and respond to real-time key performance indicators. Ensure forecast accuracy, and position your team to achieve revenue goals. Provide your users with pre-built dashboards for reporting and analytics. Sales management Provide managers with visibility and quick access to their teams' sales activities. Precisely monitor your sales force so you can recognize and respond to constantly shifting market demands. Account and contact management Ensure your sales professionals focus on activities that develop loyal and profitable customer relationships. Attain complete visibility into all sales activities to foster collaboration and team efficiency. Calendar and task management Easily capture and manage your activities, calendar, and every customer interaction -- including your appointments, telephone calls, e-mails, letters, and meetings. Synchronize with Microsoft Outlook or IBM Lotus Notes groupware, so you have easy access to up-to-date, consistent information.
New User Interface Enables Quick Adoption All SAP CRM on-demand solutions offer a new user interface -- completely redesigned based on customer feedback -- to mirror the way users work. The interface offers: Intuitive design A familiar Web user interface, online tutorials, and end-user help enable quick adoption with minimal training. Easy configuration Administrators can quickly tailor the solution online -- including screen, view, and field configurations -- to meet the specific needs of business users. Simple shortcuts and navigational aids Quick links to key data, snapshots of recent records, key reminders and alerts, screen-personalization capabilities, and the ability to save user-specific searches help users shave time from daily tasks. Microsoft Office and IBM Lotus Notes integration Integration with office products enables users to synchronize tasks, appointments, and e-mails with Microsoft Office and IBM Lotus Notes, so they can manage activities and communications from one central location -- any time, anywhere. Customer and opportunity lists can be exported to Microsoft Excel for analysis.
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Figure 57: Migration from SAP CRM on-demand to mySAP CRM
Integration Sales orders in a mySAP CRM scenario can come from different sources:
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Figure 58: Sales Orders in mySAP CRM
• • • •
Telesales: The agent can use the Interaction Center to create orders directly in the CRM system. Sales: Sales employees can use field sales to create orders directly on their laptop or PDA and then send them to the SAP CRM system. Internet: Orders can be created in SAP Internet Sales. Direct entry in SAP CRM: Orders can still be entered directly in SAP CRM, independently of the communication channel.
Although orders can come from any source, they are ultimately executed in the SAP ERP system. In the ERP system, business processes such as the shipment of goods and the billing are processed. The completion progress is transferred to the SAP CRM system in a status update.
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Figure 59: Main Components of mySAP CRM
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Lesson Summary You should now be able to: • Outline the tasks associated with the customer relationship management process • Explain how SAP supports the key processes in customer relationship management with the mySAP CRM application
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Lesson: Production
Lesson: Production Lesson Overview In this lesson you will gain an understanding of production processes and how production is integrated within other solutions.
Lesson Objectives After completing this lesson, you will be able to: • •
Outline the tasks associated with production planning and manufacturing execution Explain how mySAP ERP supports key processes in production
Business Example Your company, IDES, has several production locations distributed all around the world. Depending on the material production complexity, multiple production steps are necessary to produce the finished products.
Production With support for all manufacturing strategies for businesses in the discrete process and consumer products industries, mySAP ERP helps enterprises manage the full range of manufacturing activities, from planning to execution and analysis, in a single, end-to-end system. mySAP ERP delivers all elements of a customer-oriented manufacturing management system and is fully compatible with Just-in-Time (JIT) and Kanban methodologies. By combining information from a variety of business processes (including planning, cost accounting, Human Capital Management, materials management, Warehouse Management, plant maintenance, and quality management), mySAP ERP supports the development and execution of efficient production plans and ensures that accurate, comprehensive information is available at any time to those who need it. Businesses can share manufacturing information across the enterprise and supply network to coordinate production processes and promote cooperation. In addition, data from plant process control and data-collection systems can be incorporated as well, enhancing decision making by including accurate production data.
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Figure 60: Production
Manufacturing and production in mySAP ERP, in cooperation with all other integrated SAP applications, does much more than just facilitate efficient production. It establishes critical links between sales, production planning, and the factory floor. SAP integrates your supply chain processes to make the enterprise as competitive as possible. It integrates seamless with external real-time process control and laboratory information systems. This represents a significant advancement for information systems in the repetitive manufacturing and process industries. SAP offers full integration between its project planning, material requirements planning (MRP), and shop floor control system modules. Standard interfaces link SAP to external CAD, product data management, and plant data collection systems. Therefore, mySAP ERP is also the state-of-the-art manufacturing system for discrete manufacturers and engineering-to-order companies.
Planning Process Overview Multiple forecasting models and strategies can assist you in making the best choice. Models are selected through the system using built-in intelligence, while mySAP ERP continuously checks the validity of the model. You can incorporate the impact of events, such as marketing promotions and seasonal influences, into the forecasts. You can even override individual values of past demands and forecasts. Full integration within mySAP ERP makes periodic forecast revisions easy. You can break down forecast demands from the planning level to the level of the individual product. Rough-cut capacity planning at the planning level provides
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a reality check of resource bottlenecks. Forecasts are easily transferred to Demand Management and Master Production Scheduling (MPS), where they can be offset by incoming sales orders. You can also add unexpected demands any time.
Figure 61: Production Planning
Planning is generally divided into several steps. These steps may be executed independent of each other, or they may collaborate. Sales and Operations Planning Sales and Operations Planning (SOP) generates sales plans and production plans using forecast values and requirements from the Sales Information System and costing/profitability analysis as inputs for determining requirements. The requirements are reflected in the system as planned quantities of a product over a given period of time, and are not necessarily created on the basis of a customer requirement. Demand Management In Demand Management forecasting, functionality is connected with production scheduling. Requirement quantities and dates for finished products and assemblies based on the plans from SOP are determined. Master Production Scheduling Master Production Scheduling (MPS) allows for critical resources or top-level items to be planned with extra attention. This procedure ensures that the instabilities in planning are kept to a minimum. MPS is an optional step in the planning process. Material Requirements Planning Material Requirements Planning (MRP) is the detailed planning of replenishment schedules for required components. The output of MRP is either a planned order or a purchase requisition.
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Execution The production order is the central data object in shop floor control and manufacturing execution. The production order contains all data relevant to production objectives, material components, required resources, and costs. A normal production order covers the demand for a single material or product, but you can also produce multiple products jointly in one production order (co-products) and distribute incurred costs between the different products. In a production order, you can also specify external operations that are to be processed in an outside workshop. If you need to carry out a rework, you can create a separate rework order that is directly assigned to the primary production order. Alternatively, you can insert specific rework operations into an existing order. Production orders are usually created from planned orders. The complete process includes several steps: • • • •
Creation and release of a production order Goods issues of components Confirmation of production activity Goods receipts of the finished goods
Figure 62: Production Order
You must release a production order before you can process it. Once you have set the order status to Released, you can print shop floor papers, issue materials from stock, and confirm operations. Before you release a production order, you have to make sure that sufficient manufacturing capacity is available. You can use the Graphic Planning Table to get an overview of your short-term orders and release production orders.
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When you release a production order, you can set up the system to check the availability of components and production resources or tools. You can even specify the type of availability check to be carried out (Available-to-Promise (ATP) calculation) per order type. For example, you can work with either dynamic or static availability checking. When you customize your system, you can specify whether an order can be released even though it may have missing parts or production resources. You can either release production orders individually, order by order, or you can release them as a group, when the order start dates reach the release horizon. You can release all orders within a collective order in one step, or you can set up the system so that production orders are released as soon as they are created. You can release production orders operation by operation, if, for example, operation times are rather long and work center assignment for an operation is only carried out after the previous operation has finished (for example, at a components plant in the aircraft industry or during assembly of precision instruments).
Order Confirmation and Goods Receipt You confirm production order operations to deliver feedback to sales order processing and shop floor planning. Completion confirmations collect important data, such as quantities produced, scrap, production times, and completion dates. Completion confirmations clear capacity loads and collect data for production cost controlling. Confirmed labor can be transferred to mySAP ERP Human Capital Management.
Figure 63: Confirmation and Goods Receipt
Completion Confirmations
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The following types of completion confirmations are possible: Milestone completion confirmations The system confirms all preceding operations, including sub-operations, up to the previous milestone. mySAP ERP bases confirmations on reported quantities (yield plus scrap) and standard times. Standard completion confirmations The operations are confirmed using target values. Normal completion confirmations You conduct individual completion confirmations, seeing target values as defaults. The system allows you to overwrite all input values so you can report variances in the production process. Collective completion confirmations The system displays a fast entry screen where you can enter multiple operations to confirm. Completion confirmations at order header level Orders can be confirmed at order header level, which can drive the automatic backflush of material consumption for all operations, if you so choose. With mySAP ERP, you can confirm production orders operation by operation. But if you work in a lean, process-oriented production environment, confirmation of a milestone operation at the end of a production order can be sufficient. You also have the option of confirming production orders at order header level, which works like a milestone confirmation at the end of the order. You confirm either upon receiving the product in the finished products warehouse, or at the ramp just before delivery to your customer. If you create the necessary organizational requirements, you can confirm all operations and backflush materials with a single confirmation transaction. Goods Receipt Goods receipts to stock can be automatically posted when you confirm the last operation (or any other operation specified) in a production order. Alternatively, you can report them in a separate transaction. You can process goods receipts for partial deliveries from production by posting them directly to available stock or to quality inspection stock. You can also process goods receipts from co-products and by-products. Goods receipt processing generates a credit posting to the production order that corresponds to the value of the product quantity based on its standard price. mySAP ERP debits the value in the General Ledger (G/L) to the stock account for finished products and credits it to a specific revenue account, which represents the value of goods produced. You assign the G/L accounts when you set up the system.
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Settlement Order settlement for a production order means clearing the differences between the actual costs incurred and the credits that the order received from goods receipts. Order settlement demonstrates the close integration between Production and Management Accounting in mySAP ERP. Normally, a production order is settled when it is completed or before month-end closing. During settlement, you can post cost variances to one or more cost objects. For example, you can post variances due to excessive scrap to a scrap cost collector, and variances due to poor performance to a productivity problem cost collector. Alternatively, you can simply post the entire variance to inventory. The system posts an entry to the G/L price variance account when you work with standard costing.
Figure 64: Settlement
You can analyze production costs at product level, for example, with the online variance reports. These reports show planned costs for the order, actual incurred costs, and calculated variances. The reports also show detailed costs per cost element. You can also select a report showing the corresponding quantities. You can interactively analyze the variances and use a drilldown technique to display individual cost allocations. You can access every single cost allocation item, including information about dates, quantity, and origin of the allocation transaction. You can use other standard reports that compare standard cost estimates for products with current production orders or production cost collectors. You can also define production order hierarchies, where you summarize orders for the same product or for product groups. The full power and flexibility of mySAP ERP Financials is available for analyzing production costs.
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Lesson: Production
Exercise 11: Production Exercise Objectives After completing this exercise, you will be able to: • View a bill of material • View the components of a bill of material • Display a Stock/Requirements List • Navigate within the various areas of the Stock/Requirements List • Create a production order • Confirm a production order
Business Example Your department handles the requests from other departments to produce products. You are responsible to monitor stock levels from production. First you need to review a multilevel bill of material to see how many components make up the finished product.
Task 1: View the bill of material (BOM) for a material and display its components. 1.
Using the information provided in the table, display the bill of material. Field
Data
Material
R-F1## (Pump)
Plant
1000 (Hamburg)
BOM usage
1 (Production)
2.
How many component materials make up the R-F1## material, excluding any documentation? Record the components in the table.
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Components
3.
How many component materials are there for the component material R-B1##? Record the components in the table. Components
Task 2: You have determined that the Stock/Requirements List will enable you to monitor the production process and display production-related information. Display the Stock/Requirements List. 1.
Using the information provided in the table, view the stock/requirements list. Material
R-F1##
Plant
1000(Hamburg)
Task 3: You have been asked to place a production order for 10 pumps. When the production of the pumps has been completed, you have to place the pumps into stock by confirming the production order. Display the Stock/Requirements List to confirm each of the requested production process. 1.
Using the information provided in the table, create a PP01 production order. Record the production order.
Continued on next page
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Field
Data
Material
R-F1## (Pump)
Plant
1000 (Hamburg)
Qty
10
Finish
Production Order 2.
Access the Stock/Requirements List to display the production order.
3.
Confirm the production order.
4.
Record the available quantity from the Stock/Requirements List. Available qty
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Solution 11: Production Task 1: View the bill of material (BOM) for a material and display its components. 1.
Using the information provided in the table, display the bill of material. Field
Data
Material
R-F1## (Pump)
Plant
1000 (Hamburg)
BOM usage
1 (Production)
a)
From the SAP Easy Access menu, choose Logistics → Production → Master Data → Bills of Material → Bill of Material → Material BOM.
b)
Choose
c)
Enter Material: R-F1##.
d)
Enter Plant: 1000.
e)
Enter BOM usage: 1.
f)
Choose Enter.
Display.
The bill of material displays, showing the R-F1## material components. 2.
How many component materials make up the R-F1## material, excluding any documentation? Record the components in the table. Components
a) 3.
Four components make up material R-F1##. Record the components in the table.
How many component materials are there for the component material R-B1##? Record the components in the table. Continued on next page
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Components
a)
Select component R-B1## by selecting the box to the left of the material or by placing the cursor on the line.
b)
Choose Extras → Display assembly. A display assembly dialog box appears.
c)
Choose Continue. The component's bill of material now displays. There are three component materials for component material R-B1##. Record the components in the provided table.
d)
Choose
Exit to return to the SAP Easy Access menu.
Task 2: You have determined that the Stock/Requirements List will enable you to monitor the production process and display production-related information. Display the Stock/Requirements List. 1.
Using the information provided in the table, view the stock/requirements list. Material
R-F1##
Plant
1000(Hamburg)
a)
From the SAP Easy Access menu, choose Logistics -> Production -> Shop Floor Control -> Information System.
b)
Choose
c)
Enter Material: R-F1##.
d)
Enter Plant: 1000.
e)
Choose
Stock/Requirements List.
Continue.
At the present time, no requirements exist for the material. Choose Exit to leave the Stock/Requirements List and return to the SAP Easy Access menu.
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Task 3: You have been asked to place a production order for 10 pumps. When the production of the pumps has been completed, you have to place the pumps into stock by confirming the production order. Display the Stock/Requirements List to confirm each of the requested production process. 1.
Using the information provided in the table, create a PP01 production order. Record the production order. Field
Data
Material
R-F1## (Pump)
Plant
1000 (Hamburg)
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Field
Data
Qty
10
Finish
Production Order a)
From the SAP Easy Access menu,choose Logistics → Production → Shop Floor Control → Order → Create.
b)
Choose
c)
Enter Material: R-F1##.
d)
Enter Plant: 1000.
With Material.
Hint: The order type PP01 will default, so a user entry is not required. e)
Choose Enter.
f)
On the General tab in the Quantities area, enter 10 in the Total quant field.
g)
On the General tab in the Dates area, enter in the Finish field.
h)
From the application toolbar: choose Release Order.
i)
Choose
j)
Record your production order in the space provided in the table above.
k)
Choose menu.
Save.
Exit to exit the screen and return to the SAP Easy Access
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2.
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Access the Stock/Requirements List to display the production order. a)
From the SAP Easy Access menu, choose Logistics → Production → Shop Floor Control → Information System.
b)
Choose Stock/Requirements List.
c)
Enter Material: R-F1##.
d)
Enter Plant: 1000. Note: The information will default so an user entry is not required.
3.
Enter.
e)
Choose
f)
Choose
g)
From within the dialog box, choose Display Element to display the production order.
h)
Choose Exit to leave the Stock/Requirements List and return to the SAP Easy Access menu.
Details of element.
Confirm the production order. a)
From the SAP Easy Access menu, choose Logistics → Production → Shop Floor Control → Confirmation → Enter.
b)
Choose
c)
Enter the number from the previous step.
d)
Choose Enter.
e)
Choose Final Confirmtn to make the final confirmation of the production order.
For Order.
Note: The quantity will auto default in the Yield to conf. field, so a user entry is not required. f) 4.
Choose Save.
Record the available quantity from the Stock/Requirements List.
Continued on next page
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Lesson: Production
Available qty a)
From the SAP Easy Access menu, choose Logistics -> Production-> Shop Floor Control -> Information System.
b)
Choose
c)
Enter Material: R-F1##.
d)
Enter Plant: 1000.
Stock/Requirements List.
Note: The information will default so an user entry is not required.
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e)
Choose Enter.
f)
Record the Available qty in the space provided
g)
Choose Exit to leave the stock/Requirements List and return to the SAP Easy Access menu.
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Lesson: Production
Exercise 12: Production of a make-to-order product Exercise Objectives After completing this exercise, you will be able to: • View a bill of material • View the components of a bill of material • Display a Stock/Requirements List • Navigate within the various areas of the Stock/Requirements List • Create a production order • Confirm a production order
Business Example Your department handles the requests from other departments to produce products. You are responsible to monitor stock levels from production. First you need to review a multilevel bill of material to see how many components make up the finished product.
Task 1: View the bill of material (BOM) for a material and display its components. 1.
Using the information provided in the table, display the bill of material. Field
Data
Material
R-F4## (Pump)
Plant
1000 (Hamburg)
BOM usage
1 (Production)
2.
How many component materials make up the R-F4## material, excluding any documentation or drawings? Record the components in the table.
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Components
3.
How many component materials are there for the component material R-B1##? Record the components in the table. Components
Task 2: You have determined that the Stock/Requirements List will enable you to monitor the production process and display production-related information. Display the Stock/Requirements List. 1.
Using the information provided in the table, view the stock/requirements list. Material
R-F4##
Plant
1000(Hamburg)
Task 3: Your customer requests a make-to-order product, enter a standard sales order for your customer. 1.
Using the information provided in the table, create a standard order. Record the sales order document. Field
Data
Order Type
OR (Standard Order)
Sold-to party
Rohrer## (Rohrer AG Gr.##)
Purch. order no.
Group—##
Req. deliv.date
Continued on next page
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Field
Data
Material
R-F4## (Pump Precision 4##)
Order quantity
10
Sales order
Task 4: Display the Stock/Requirements List to confirm your sales order has been created. 1.
Using the information provided in the table, view the stock/requirements list. Material
R-F4##
Plant
1000(Hamburg)
Task 5: You start a MRP run to calculate the requirements and to create planned orders. 1.
Using the data specified below, start the MRP run. Field
Data
Material
R-F4##
MRP area
1000
Plant
1000
The rest of the entries you can leave as they are (they are written below just for continuity). Field
Data
Processing key
NETCH
Create purchase req.
2
Delivery schedules
3
Create MRP list
1
Planning mode
1
Scheduling
1
Leave the Process control parameters unchecked. Continued on next page
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2.
SAP01
Using the information provided in the table, view the stock/requirements list and record your planned order. Material
R-F4##
Plant
1000(Hamburg)
Planned order
Task 6: You create and release a production order with reference to the planned order. When the production of the pumps has been completed, you have to place the pumps into stock by confirming the production order. Use the Stock/Requirements List to confirm the creation and processing of the production order. 1.
Using the information provided in the table, create a production order. Record the production order. Field
Data
Planned Order
Order type
PP01
Production Order 2.
Access the Stock/Requirements List to display the production order.
3.
Confirm the production order.
4.
Record the available quantity from the Stock/Requirements List. Available qty
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Lesson: Production
Solution 12: Production of a make-to-order product Task 1: View the bill of material (BOM) for a material and display its components. 1.
Using the information provided in the table, display the bill of material. Field
Data
Material
R-F4## (Pump)
Plant
1000 (Hamburg)
BOM usage
1 (Production)
a)
From the SAP Easy Access menu, choose Logistics → Production → Master Data → Bills of Material → Bill of Material → Material BOM.
b)
Choose Display.
c)
Enter Material: R-F4##.
d)
Enter Plant: 1000.
e)
Enter BOM usage: 1.
f)
Choose
Enter.
The bill of material displays, showing the R-F4## material components. 2.
How many component materials make up the R-F4## material, excluding any documentation or drawings? Record the components in the table. Components
a)
Four components make up material R-F4##. Record the components in the table.
Continued on next page
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3.
SAP01
How many component materials are there for the component material R-B1##? Record the components in the table. Components
a)
Select component R-B1## by selecting the box to the left of the material or by placing the cursor on the line.
b)
Choose Extras → Display assembly. A display assembly dialog box appears.
c)
Choose Continue. The component's bill of material now displays. There are three component materials for component material R-B1##. Record the components in the provided table.
d)
Choose
Exit twice to return to the SAP Easy Access menu.
Task 2: You have determined that the Stock/Requirements List will enable you to monitor the production process and display production-related information. Display the Stock/Requirements List. 1.
Using the information provided in the table, view the stock/requirements list.
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Lesson: Production
Material
R-F4##
Plant
1000(Hamburg)
a)
From the SAP Easy Access menu, choose Logistics → Production → Production Control → Information System.
b)
Choose
c)
Enter Material: R-F4##.
d)
Enter Plant: 1000.
Stock/Requirements List.
Hint: This information may have already defaulted into the fields. e)
Choose Continue. At the present time, no requirements exist for the material. Choose Exit to leave the Stock/Requirements List and return to the SAP Easy Access menu.
Task 3: Your customer requests a make-to-order product, enter a standard sales order for your customer. 1.
Using the information provided in the table, create a standard order. Record the sales order document. Field
Data
Order Type
OR (Standard Order)
Sold-to party
Rohrer## (Rohrer AG Gr.##)
Purch. order no.
Group—##
Req. deliv.date
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Field
Data
Material
R-F4## (Pump Precision 4##)
Order quantity
10
Sales order a)
From the SAP Easy Access menu, choose Logistics → Sales and Distribution → Sales → Order.
b)
Choose
c)
Enter Order Type: OR.
d)
Choose
e)
Enter Sold-to party: Rohrer##.
f)
Enter Purch. order no.: Group-##.
g)
Choose
Create.
Enter.
Enter. Hint: Make sure you are on the Sales tab on the order entry screen.
h)
Enter Req. deliv.date: .
i)
Choose Enter.
j)
Enter Material: R-F4##.
k)
Enter Order quantity: 10.
l)
Choose Enter.
m)
Choose Save and record the document number in the table provided. Hint: The system displays a message that the sales order has been saved with the sales document number. This number appears on the status bar on the bottom left-hand corner of the order window.
n)
Choose Exit to leave the Sales Order and return to the SAP Easy Access menu.
Continued on next page
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Lesson: Production
Task 4: Display the Stock/Requirements List to confirm your sales order has been created. 1.
Using the information provided in the table, view the stock/requirements list. Material
R-F4##
Plant
1000(Hamburg)
a)
From the SAP Easy Access menu, choose Logistics → Production → Shop Floor Control → Information System.
b)
Choose Stock/Requirements List.
c)
Enter Material: R-F4##.
d)
Enter Plant: 1000. Note: The information will default so an user entry may not be required.
e)
Continue.
Choose
Now there is a requirement created for the sales order. Choose Exit to leave the Stock/Requirements List and return to the SAP Easy Access menu.
Task 5: You start a MRP run to calculate the requirements and to create planned orders. 1.
Using the data specified below, start the MRP run. Field
Data
Material
R-F4##
MRP area
1000
Plant
1000
The rest of the entries you can leave as they are (they are written below just for continuity). Field
Data
Processing key
NETCH
Create purchase req.
2
Delivery schedules
3 Continued on next page
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Create MRP list
1
Planning mode
1
Scheduling
1
Leave the Process control parameters unchecked. a)
From the SAP Easy Access menu, choose Logistics → Production → MRP → Planning .
b)
Choose Single-Item, Multi-Level Planning.
c)
Enter Material: R-F4##
d)
EnterMRP area: 1000
e)
Enter Plant: 1000 Note: The information will default so an user entry may not be required.
f)
Choose
Enter.
g) Hint: You have to confirm the input parameters by pressing Enter again. h) 2.
Choose Exit to leave the MRP Run result and return to the SAP Easy Access menu.
Using the information provided in the table, view the stock/requirements list and record your planned order.
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Material
R-F4##
Plant
1000(Hamburg)
Planned order a)
From the SAP Easy Access menu, choose Logistics -> Production -> Shop Floor Control -> Information System.
b)
Choose
c)
Enter Material: R-F4##.
d)
Enter Plant: 1000.
Stock/Requirements List.
Note: The information will default so an user entry may not be required. e)
Choose
f)
After the MRP Run there is not only the requirement for the sales order but also an new MRP element, a planned order. Record the planned order in the space provided in the table above.
g)
Choose Exit to leave the Stock/Requirements List and return to the SAP Easy Access menu.
Continue.
Task 6: You create and release a production order with reference to the planned order. When the production of the pumps has been completed, you have to place the pumps into stock by confirming the production order. Use the Stock/Requirements List to confirm the creation and processing of the production order. 1.
Using the information provided in the table, create a production order. Record the production order.
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Field
Data
Planned Order
Order type
PP01
Production Order a)
From the SAP Easy Access menu,choose Logistics → Production → Shop Floor Control → Order → Create.
b)
Choose From Planned Order.
c)
Enter Planned Order: .
d)
Enter Order Type: PP01. Hint: The order type PP01 should default, so an user entry might not be required. Enter.
e)
Choose
f)
From the application toolbar: choose
g)
Choose
h)
Record your production order in the space provided in the table above.
i)
Choose menu.
Release Order.
Save.
Exit to exit the screen and return to the SAP Easy Access
Continued on next page
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2.
Access the Stock/Requirements List to display the production order. a)
From the SAP Easy Access menu, choose Logistics → Production → Shop Floor Control → Information System.
b)
Choose Stock/Requirements List.
c)
Enter Material: R-F4##.
d)
Enter Plant: 1000. Note: The information will default so an user entry may not be required.
3.
Enter.
e)
Choose
f)
Choose
g)
From within the dialog box, choose the production order.
h)
Choose Exit to leave the Stock/Requirements List and return to the SAP Easy Access menu.
Details of element. Display Element to display
Confirm the production order. a)
From the SAP Easy Access menu, choose Logistics → Production → Shop Floor Control → Confirmation → Enter.
b)
Choose For Order.
c)
Enter number from the previous step.
d)
Choose Enter.
e)
Choose Final Confirmtn to make the final confirmation of the production order. Note: The quantity will auto default in the Yield to conf. field, so a user entry is not required.
f) 4.
Choose
Save.
Record the available quantity from the Stock/Requirements List.
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Available qty a)
From the SAP Easy Access menu, choose Logistics -> Production-> Shop Floor Control -> Information System.
b)
Choose
c)
Enter Material: R-F4##.
d)
Enter Plant: 1000.
Stock/Requirements List.
Note: The information will default so an user entry may not be required.
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e)
Choose
f)
Record the Available qty in the space provided
g)
Exit to leave the stock/Requirements List and return to the Choose SAP Easy Access menu.
Enter.
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Lesson: Production
Lesson Summary You should now be able to: • Outline the tasks associated with production planning and manufacturing execution • Explain how mySAP ERP supports key processes in production
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Lesson: Supply Chain Management Lesson Overview In this lesson you will receive an overview of the mySAP Supply Chain Management solution.
Lesson Objectives After completing this lesson, you will be able to: • • •
Outline the tasks associated with the supply chain management process Explain how SAP within the mySAP SCM application supports the key processes in supply chain management Explain how SAP SCM integrates with other components and systems
Business Example Your company, IDES, has distribution centers all over the world so that it can deliver goods to its customers quickly and directly. IDES wants to use global planning methods to ensure that deliveries are made from the nearest distribution center.
The Supply Chain Traditional Enterprise Resource Planning (ERP) systems have evolved to the point where plants and distribution centers can plan timely and cost-efficient replenishment within a company. In today’s environment you must be able to plan the entire supply chain, not just the locations inside your company.
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Figure 65: mySAP SCM
Today’s company must be able to: • • •
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Plan timely and cost-efficient replenishment throughout the entire supply chain Quickly react to constantly changing business relationships, customer expectations, and business processes within the supply chain Manage the supply chain on a global basis
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Figure 66: From Supplier to Customer
To meet today’s supply chain challenges, software solutions must: • • • • •
Provide immediate visibility to all supply and demand information Ensure replenishment plans are synchronized throughout the entire supply chain Provide modeling tools to help determine the best approach to reducing overall cycle time in the network Support the evolving techniques for buying and selling products/services over the Internet Allow automation of business process between suppliers and customers in the supply chain
The ultimate goal of supply chain management is to perform Just-in-Time delivery of goods and services to all locations in the supply chain (purchase, manufacturing, transportation, storage, handling, and so on) at the lowest cumulative network cost possible.
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mySAP Supply Chain Management (mySAP SCM) is the only solution that delivers a complete set of features and functions for building adaptive supply chain networks. These features and functions include: •
Planning Enables you to model supply chains by providing comprehensive planning capabilities, including supply chain design, demand and supply planning, manufacturing planning, and transportation planning.
•
Execution Integrates planning, promising, logistics, and transactional systems through materials management, manufacturing execution, order promising, transportation execution, and warehouse management -- augmented with innovative radio frequency identification (RFID) technology.
•
Coordination Lets you monitor and analyze processes both within and outside your company by providing supply chain event management and supply chain performance management
•
Collaboration Enables you to share information and set and achieve common supply chain goals through collaborative planning, forecasting, and replenishment (CPFR), support for vendor-managed inventory (VMI), and support for supplier-managed inventory (SMI)
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Figure 67: mySAP SCM Solution Overview
Supply Chain Planning Supply Chain Design Planners and key decision makers get a centralized overview of the entire supply chain network. This supports strategic and tactical business planning by enabling companies to test how changes in the market, the business, or customer demand affect the supply chain. Demand and Supply Planning Advanced end-to-end planning provides complete support for a company's tactical and operational planning needs. By using collaborative Demand Planning, partners can leverage historic demand to drive forecasting, promotion planning, and inventory planning. With collaborative supply and distribution planning, partners can concurrently plan procurement, manufacturing, distribution, and transportation. Demand and supply planning also offers out-of-the-box optimization for a broad array of industries. Manufacturing Planning Planners are able to create feasible production plans that span production locations. Manufacturing planning with Production Planning / Detailed Scheduling (PP/DS) optimizes resource requirements based on heuristic methods or optimization rules. For medium- and long-term needs, rough-cut planning determines aggregate requirements of materials and resources, such as machines, production resource tools, and people. For immediate needs, planning is more finite and focuses on
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specific resource and build schedules. Solvers, real-time data, and high supply chain visibility -- with key performance indicators (KPIs) and alerts -- support the planner's decision-making process.
Figure 68: Planning and Execution
Transportation Planning Companies are able to determine the right shipment mode, carriers, and routes based on the lowest cost of delivery, while considering transportation constraints. Transportation Planning integrates with any enterprise transportation execution system or transportation point solution. It enables shippers to optimize use of the available capacity of trucks, trains, ships, and planes -- on both inbound and outbound transportation -- to plan loading capacity more efficiently, and to lower costs.
Supply Chain Execution Materials Management By sharing information about inventory and procurement orders, mySAP SCM ensures that the materials required for manufacturing are in the right place at the right time. Plan-driven procurement, inventory management, and invoicing close the feedback loop between demand and supply and improve fill rates and customer satisfaction through increased replenishment speed, delivery confirmation, and invoice accuracy. Manufacturing Execution
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mySAP SCM supports all production processes, including engineer-to-order, configure-to-order, make-to-order, and make-to-stock. It also generates optimized production schedules that take into account real-time material and capacity constraints. By integrating manufacturing with other supply chain processes, mySAP SCM enables a rapid, flexible approach to responding to engineering changes and customer requirements. Order Promising Based on the Global Available-to-Promise (Global ATP) capability, order promising receives queries from order management or CRM systems and determines when a product is available across a fulfillment network or can be built. It also shows how much the product will cost, and how long it will take to deliver. Order promising is the critical link between order management/CRM systems and supply chain planning systems, providing a window into product availability. Transportation Execution mySAP SCM allows distributed enterprises to manage transportation from a centralized location or from locations throughout business units. Transportation managers can consolidate orders and optimize shipments from suppliers to customers to achieve maximum efficiency for their transportation dollars. They can also consider transportation constraints and costs while ensuring time-definite deliveries. mySAP SCM supports shipment tendering and booking, carrier selection, freight building, freight cost calculation, shipment cost settlement, document printing, and international trade management, such as denied-party list screening and embargo lists. Warehouse Management Warehouse management reconciles open purchase orders with incoming shipments, supports a putaway system that remembers where goods are stored, and optimizes employee picking assignments. Warehouse management also supports warehousing tasks such as labeling, kitting, and deferred handling.
Supply Chain Coordination Supply Chain Event Management Companies can sense and respond to changes in plans that occur across the supply chain. Monitoring at every stage of the supply chain process provides visibility from price quotation to procurement to product delivery. Supply chain event management also distributes alerts and recommends actions when key events are missed and produces detailed reports on supply chain status. Supply Chain Performance Management Supply chain performance management measures, monitors, and displays key performance indicators (KPIs) associated with supply chain processes. It enables decision makers to control the effectiveness of the extended supply chain proactively and to share this insight with business partners.
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Supply Chain Collaboration Support for CPFR mySAP SCM supports Collaborative Planning, Forecasting and Replenishment (CPFR) and is certified by the Voluntary Interindustry Commerce Standards (VICS) committee. This enables manufacturers to collaborate with their strategic retail customers to increase revenue, improve service, and lower inventory levels and costs. It supports an exception-based CPFR process that allows companies to add retail partners without a proportional increase in staff. Manufacturers can be assured that mySAP SCM integrates quickly and easily with retail systems.
Figure 69: Supply Chain Collaboration
Support for VMI mySAP SCM supports vendor-managed inventory (VMI), a collaborative process used in many industries. This vendor-driven replenishment process reduces costs, increases utilization, and improves customer service. The VMI process is built into mySAP SCM and can be implemented rapidly over the Web, making it easy and practical to use with a variety of customers. Support for SMI mySAP SCM supports supplier-managed inventory (SMI) by allowing companies to use the Internet to gain visibility into their suppliers and to manage the replenishment process. Suppliers can see the status of their parts at all plants, receive automatic alerts when inventory levels get low, and respond quickly via the Web. mySAP SCM immediately integrates the latest inventory and replenishment information with back-end transaction and planning systems, so all parties remain up-to-date.
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Integration The two main components in the mySAP SCM scenario are SAP ERP Central Component (SAP ECC) and SAP Supply Chain Management (SAP SCM). While most of the execution processes are performed in SAP ERP Central Component, SAP SCM is responsible for optimized planning and delivers additional functionality for coordination and collaboration. SAP SCM also adds additional functionality in the execution through Global Available-to-Promise (Global ATP) capabilities.
Figure 70: Processes in mySAP SCM
RFID In today's economy, all businesses are looking for ways to optimize the supply chain network to cut costs, increase revenue, decrease working capital, and reduce fixed capital. This is even more important in an increasingly networked economy, which presents a wide range of challenges, including consumer and regulatory requirements for the accurate tracking of product handling information. In addition, globalization is creating new competitors and greater complexities as businesses become global in corporate structure, market access, and business processes. Radio frequency identification (RFID) technology can help you meet these challenges by providing accurate, real-world, real-time information on products as they move through the value chain, and by automating related business processes. The SAP RFID application allows your company to close the loop between acquiring data, converting it to meaningful information, and automating all associated transactions and processes. As a result, it helps your business become
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smarter, more responsive, and more adaptive. RFID technology has the power to transform your business processes. Whether you take advantage of “smart shelves” for retailing, enhanced warehouse efficiency, or increased visibility into equipment maintenance processes, SAP RFID can have an impact across virtually all industries and processes. RFID capabilities in mySAP SCM are delivered through SAP Auto-ID Infrastructure (SAP AII).
Figure 71: Main Components of mySAP SCM
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Lesson Summary You should now be able to: • Outline the tasks associated with the supply chain management process • Explain how SAP within the mySAP SCM application supports the key processes in supply chain management • Explain how SAP SCM integrates with other components and systems
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Lesson: Procurement
Lesson: Procurement Lesson Overview In this lesson you will gain an understanding of the Procurement processes and how Procurement is integrated within other solutions.
Lesson Objectives After completing this lesson, you will be able to: • •
Outline the tasks associated within the procurement cycle Explain how SAP within mySAP ERP supports the key processes in Procurement
Business Example Your company, IDES, needs materials for their production processes. Materials are procured directly for stock. IDES employees can procure consumable materials directly from online catalogs.
Procurement Process Overview Procurement in mySAP ERP covers not only traditional processes such as requisitioning, purchase order management, and invoice verification, but also catalog-based self-service requisitioning for maintenance, repair, and operations (MRO) materials and services. This catalog integration is expanded to maintenance operations and project management. Procurement in mySAP ERP improves procurement processes by facilitating plan-driven and ad hoc purchasing, complete inventory management, and intelligent reporting on all procurement activities. In addition to providing supplier relationship management tools, mySAP ERP enables supplier selection and qualification, contract negotiations, bid invitations, and vendor evaluation. Support for process variant optimization allows individual categories of material or services to be procured in the most appropriate way; for example, the subcontracting process supports the delivery of components required by outsourced manufacturing steps, and procurement through invoicing plans helps improve rental and leasing processes. The basic Procurement (or Purchase to Pay) cycle for a service or material consists of the following phases: Determination of Requirements
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Material requirements are identified either in the user departments or via materials planning and control. You can enter purchase requisitions yourself or they can be generated automatically by the materials planning and control system. Note: This can cover both MRP and the demand-based approach to inventory control. The regular checking of stock levels of materials defined by master records, use of the order-point method, and forecasting on the basis of past usage are important aspects of inventory control. Source Determination mySAP ERP helps you identify potential sources of supply based on past orders and existing longer-term purchase agreements. This speeds the process of creating requests for quotation (RFQs), which can be sent to vendors electronically via EDI, if desired. Vendor Selection and Comparison of Quotations The system is capable of simulating pricing scenarios, allowing you to compare a number of different quotations. Rejection letters can be sent automatically. Purchase Order Creation The purchase order adopts information from the requisition and the quotation to help you create a purchase order. As with purchase requisitions, you can generate purchase orders yourself or have the system generate them automatically. Vendor scheduling agreements and contracts (in the SAP system, types of long-term purchase agreement) are also supported.
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Figure 72: Procurement
Purchase Order Follow-Up The system checks the reminder periods you have specified and, if necessary, automatically prints reminders or expediters at the predefined intervals. The system also provides you with an up-to-date status of all purchase requisitions, quotations, and purchase orders. Goods Receiving and Inventory Management Goods receiving personnel can confirm the receipt of goods simply by entering the purchase order number. By specifying permissible tolerances, buyers can limit over- and under-deliveries of ordered goods. Invoice Verification The system supports the checking and matching of invoices. The accounts payable clerk is notified of quantity and price variances because the system has access to purchase order and goods receipt data. This speeds the process of auditing and clearing invoices for payment.
Purchase Orders A purchase order is a formal request to a vendor to supply certain goods or services under the stated conditions. You can create purchase orders without reference, or with reference to a purchase requisition, a request for quotation, or another purchase order.
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When you enter the purchase order data, the system suggests default values. For example, the system suggests the ordering address, as well as the terms of payment and freight (incoterms) from the vendor master record. If you have maintained a material master for a given material in the SAP system, the system suggests the material short text or the material group, for example. If a purchasing info record already exists in the system, the system copies a price proposal to the purchase order.
Figure 73: Purchase Order
You can either send the purchase order to a vendor or carry out a stock transport order in another plant belonging to your company or group. In both cases you can take into account the associated freight costs in the purchase order.
Self-Service Procurement Self-Service Procurement allows employees to create and manage their own requisitions. It relieves your purchasing department of this administrative burden while making the procurement process both faster and more responsive.
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Figure 74: Self-Service Procurement
Providing catalogs of the most frequently ordered materials ensures that employees can easily manage their own purchase orders in accordance with your organization's rules. Self-Service Requisitioning means purchasing non-strategic goods, that is, goods not directly linked to the value chain (often called MRO: maintenance, repair, and operations items). This includes, for example, office materials, work clothes, and IT equipment.
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Inventory Management
Figure 75: Goods Receipt
Posting a goods receipt to stock with reference to a purchase order has a number of advantages for you, including: •
•
•
•
•
220
The goods receiving point can check whether the delivery is the same as the purchase order data, that is, whether the goods that were ordered have been delivered. The system suggests data from the purchase order when you enter the goods receipt (for example, items and quantities). This makes it easier to enter the goods receipt and check over-deliveries and under-deliveries when goods arrive. The purchase order history is automatically updated as a result of the deliveries. The purchasing department can send a reminder about late deliveries. When you post a goods receipt to the warehouse, the system creates a material document containing information such as the material delivered and the quantity delivered. The system also records the storage location for the materials you place into stock in the plant. In transactions relevant for material valuation, the system creates at least one accounting document that records the effects of the goods movement on the value of the stock.
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Lesson: Procurement
Invoice Verification The procurement process is concluded by the invoice verification process, during which invoices and credit memos are entered and the contents and prices are checked for accuracy. However, payment and evaluation of invoices is not part of invoice verification; the appropriate information for these tasks passes on to other departments. Invoice verification, therefore, creates a link between Procurement and Accounting. When you enter an invoice with reference to a purchase order, the system suggests data from the purchase order and the goods receipts for the purchase order (for example, vendor, material, quantity still to be invoiced, terms of payment, and so on).
Figure 76: Invoice Verification
If there are discrepancies between the purchase order or goods receipt and the invoice, the system warns the user and, depending on the system configuration, blocks the invoice for payment. The posting of the invoice completes the invoice verification process. The system updates the purchase order history and Financial Accounting initiates payment for the open invoice items.
Messages You can issue all purchasing documents as messages. Each time you create an RFQ (Request for quotation), purchase order, contract, or scheduling agreement, the system can create a message from the document affected. This message is then
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placed in the message queue. The message queue contains all messages that have not yet been transferred to the vendors. To issue the message (by printing, e-mail, fax, or EDI) from the message queue, you have the following options: • •
Issue immediately: The system issues the message directly from the queue, in other words, as soon as you save the document. Issue later: Either you schedule a background job that processes the message queue in determined intervals, or you start the issue directly from the purchasing menu. As a rule, you issue the messages using the background job and start the issue manually only as an exception (such as for rush orders).
Figure 77: Messages
For the message issue, you can specify which header texts and item-based texts the system issues. The header text is printed at the top of the purchase order and contains general information. Item texts describe a purchase order item in more detail. You can also include and issue standard texts. In the ordering transaction, you can display a document on your screen before printing it.
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Exercise 13: Create a Purchase Order for a Stock Material Exercise Objectives After completing this exercise, you will be able to: • Create a purchase order for a stock material
Business Example As a buyer, you have been asked by the sales department to purchase 10 slugs for spiral casing for stock. To procure the material, you need to create a purchase order that can be forwarded to the vendor.
Task: Create a purchase order for a stock material. 1.
Using the data provided in the table, create a purchase order for a stock material. Record the purchase order. Field
Data
Vendor
Baltus## (Baltus AG Gr.##)
Purchasing organization
1000 (IDES Deutschland)
Purchasing group
B## (SAP01 Gr.##)
Company code
1000 IDES AG
Material
R-T1##
PO Quantity
10
Plant
1000 (Hamburg)
Storage location
0001
Purchase Order Number 2.
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Display the purchase order.
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Solution 13: Create a Purchase Order for a Stock Material Task: Create a purchase order for a stock material. 1.
Using the data provided in the table, create a purchase order for a stock material. Record the purchase order. Field
Data
Vendor
Baltus## (Baltus AG Gr.##)
Purchasing organization
1000 (IDES Deutschland)
Purchasing group
B## (SAP01 Gr.##)
Company code
1000 IDES AG
Material
R-T1##
PO Quantity
10
Plant
1000 (Hamburg)
Storage location
0001
Purchase Order Number a)
From the SAP Easy Access menu, choose Logistics → Materials Management → Purchasing → Purchase Order → Create.
b)
Choose Vendor / Supplying Plant Known.
c)
Enter Vendor: Baltus## (Baltus AG Gr.##). Hint: If you do not see the details in the header of the purchase order, choose Expand header to expand the header area.
Continued on next page
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d)
Select the Org. data tab. Note: The Org.data tab should be the system default, so a user selection should not be required.
e)
Enter Purchasing org.: 1000.
f)
Enter Purch. group: B##.
g)
Enter Company Code: 1000.
h)
Choose Enter. Hint: If you do not see the details in the item area of the purchase order, choose Expand items to expand the item area.
i)
Enter Material: R-T1##.
j)
Enter PO quantity: 10.
k)
Enter Plant: 1000.
l)
Enter stor. loc: 0001.
m)
Choose
Enter.
n)
Choose
Save.
You receive a system message that a purchase order was created. Record your purchase order number in the table provided. Note: Do not return to the SAP Easy Access menu tree. 2.
Display the purchase order. a)
Choose Purchase order→ other purchase order. Note: Your purchase order number will default, so a user entry is not required.
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b)
From within the dialog box, choose other document. Your purchase order will be displayed.
c)
Choose menu.
Exit to exit the screen and return to the SAP Easy Access
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Exercise 14: Create a Goods Receipt by Referencing a Purchase Order Exercise Objectives After completing this exercise, you will be able to: • Enter a goods receipt with reference to a purchase order • View the material document created by the good receipt
Business Example You have received the shipment for the 10 pieces you ordered. Enter a goods receipt to stock for the order.
Task: Enter a goods receipt to stock by referencing a purchase order and view the documents created by the receipt. 1.
Using the data provided in the table, enter a goods receipt with reference to a purchase order. Record the material document. Field
Data
Purchase order
Material
R-T1##
Quantity
10
Plant
1000 (Hamburg)
Storage Location
0001
Material Document Number 2.
Display the material document. Hint: You can display the material documents from the same transaction that you use to post goods issue (MIGO) by changing the pull-down default from Goods Receipt to Display.
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Solution 14: Create a Goods Receipt by Referencing a Purchase Order Task: Enter a goods receipt to stock by referencing a purchase order and view the documents created by the receipt. 1.
Using the data provided in the table, enter a goods receipt with reference to a purchase order. Record the material document. Field
Data
Purchase order
Material
R-T1##
Quantity
10
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Field
Data
Plant
1000 (Hamburg)
Storage Location
0001
Material Document Number a)
From the SAP Easy Access menu, choose Logistics → Materials Management → Inventory Management → Goods Movement → Goods Receipt → For Purchase Order.
b)
Choose GR for Purchase Order (MIGO).
c)
Enter Purchase order: . Hint: If you did not record your purchase order number, you may search for your purchase order number by choosing and searching on the Material field using the material number R-T1##.
d)
Choose
e)
Choose the Where tab. Verify that the Plant is 1000 and that the Storage location is 0001.
f)
Check Item OK.
g)
Post to post the goods receipt. You will receive a system Choose message that a material document has been posted.
Execute or press ENTER.
Hint: Do not return the to the SAP Easy Accessmenu. 2.
Display the material document. Hint: You can display the material documents from the same transaction that you use to post goods issue (MIGO) by changing the pull-down default from Goods Receipt to Display.
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a)
Choose Display.
b)
Choose
Execute.
c)
Choose menu.
Exit to exit the screen and return to the SAP Easy Access
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Exercise 15: Post an Invoice Using Logistics Invoice Verification Exercise Objectives After completing this exercise, you will be able to: • Post a vendor's invoice
Business Example Your vendor invoices you for the delivery of the 10 spiral casing slugs. You need to post the vendor's invoice.
Task: Post the vendor's invoice for the 10 spiral casing slugs. 1.
Using the data provided in the table, post an invoice. Record the invoice document. Field
Data
Invoice date
Reference
234##
Amount
59.28
Tax Amount
8.18
Purchase Order
Invoice document
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Solution 15: Post an Invoice Using Logistics Invoice Verification Task: Post the vendor's invoice for the 10 spiral casing slugs. 1.
Using the data provided in the table, post an invoice. Record the invoice document. Field
Data
Invoice date
Reference
234##
Amount
59.28
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Field
Data
Tax Amount
8.18
Purchase Order
Invoice document a)
From the SAP Easy Access menu, choose Logistics → Materials Management → Logistics Invoice Verification → Document Entry.
b)
Choose
c)
Enter Invoice date: .
d)
Enter Reference: 234##.
e)
Enter Amount: 59.28.
f)
Enter Tax amount: 8.18.
g)
Enter the in the Purchase Order/Scheduling Agreement field located on the PO reference tab.
h)
Choose Enter.
Enter Invoice.
Hint: To locate the purchase order number, use the F4 search option. You can search for the number by vendor. Select your PO number (45000*****) and copy. Hint: The invoice may be posted if the balance indicator is green. If the balance indicator is red or yellow, please contact your instructor.
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i)
Choose
Post.
j)
Choose menu.
Exit to exit the screen and return to the SAP Easy Access
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Lesson Summary You should now be able to: • Outline the tasks associated within the procurement cycle • Explain how SAP within mySAP ERP supports the key processes in Procurement
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Lesson: Supplier Relationship Management
Lesson: Supplier Relationship Management Lesson Overview In this lesson you will receive an overview of mySAP Supplier Relationship Management.
Lesson Objectives After completing this lesson, you will be able to: • • •
Outline the tasks associated with the supplier relationship management process Explain how SAP within the mySAP SRM application supports the key processes in supplier relationship management Explain how SAP SRM integrates with other components and systems
Business Example Procurement across company boundaries is becoming ever more important and the effectiveness of procurement processes can have a large influence on costs within a company. Your company, IDES, wants to relieve the strain placed on purchasing by more closely integrating suppliers in procurement transactions.
Managing Costs for Continuous Profitability The materials and services that you receive from your suppliers directly impact the quality of the products and services you deliver to your end customers. That is why your suppliers are so important to the overall value chain. But when it comes to reducing procurement costs, it is all too tempting for companies to treat valuable supply partners as business adversaries – squeezing them for better prices and more responsive service. Clearly, this approach is shortsighted. Studies show that companies that nurture collaborative relationships with their suppliers consistently outperform companies that do not foster these relationships. In the long run, embracing suppliers and building sustainable, workable relationships across your entire supply base is far more profitable than pressuring individual suppliers for marginal cost reductions. What is needed is a way to effectively manage the entire supply base in a way that streamlines procurement and sourcing processes, maintains supply quality, and increases profits, supplier collaboration, and innovation.
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Figure 78: mySAP SRM
Delivering a quick, measurable return on investment (ROI), mySAP Supplier Relationship Management (mySAP SRM) manages spending for continuous profitability. With increased supply chain visibility and automated processes that connect the entire supply base, you can gain unprecedented insight into global spend and realize new abilities to cut the cost of purchased goods and services company-wide. From strategy to execution, mySAP SRM covers the full supply cycle – helping you optimize supplier selection, increase collaboration, and compress cycle times. With the unique advantages of consolidated content and master data, mySAP SRM also helps you make and execute decisions that align with corporate strategy.
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Figure 79: Procurement and Sourcing
Business Benefits mySAP SRM focuses on bottom-line results, helping you reduce the cost of goods sold throughout the company. By improving supply-related efficiency and enhancing the value of supplier relationships, mySAP SRM delivers significant business benefits in the following key areas: Improved sourcing strategy • • •
Rationalization and optimization of the supply base Better access to data on supplier performance Improved quality of supply and reduced risk
Compressed cycle times • • •
Automation of tedious request-for-proposal (RFP) and request-for-quotation (RFQ) cycles Faster procurement execution through online approval Faster acknowledgment and response from suppliers
Reduced process costs • • •
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Increased compliance through reduced maverick buying Reduced complexity through content consolidation Increased efficiency through procurement automation
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Lower unit prices • • •
Demand consolidation across multiple business units Lower inventory carrying costs Better prices through competitive bidding
Strategic Purchasing and Sourcing Strategic purchasing and sourcing is the process of developing a sound supply strategy and executing it by finding qualified sources to fulfill supply needs, negotiate purchase agreements, manage contracts, and evaluate supplier performance.
Figure 80: Strategic Purchasing and Sourcing
Capabilities of strategic purchasing and sourcing include: Supply Strategy Development Develop solid supply strategies that fit the needs of the respective business units and are in line with overall corporate goals. You can achieve this by employing a variety of different tools and methods that may be unique to each commodity and supply market. The strategy upon which you will then execute provides specific details, such as recommended suppliers, length and type of contract, local or global suppliers, and so on. Spend Analysis
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Improve your visibility into global spend and supply-base data by mapping and cleansing commodity and vendor information and distributing it to internal systems, electronic catalogs, and data warehouses. This enables you to identify and rationalize redundant supply relationships and analyze spend patterns throughout the enterprise, while putting your company in a better position to negotiate contract terms and control procurement costs. Supplier Selection Minimize purchase risk, improve supply-base monitoring, and more easily assess supplier performance. Doing this helps companies focus on suppliers that match specific needs and add business value while providing information on those suppliers that need improvement. Then, it is easy to compress sourcing cycle times by collaborating with preselected suppliers. You can accomplish this by using a variety of electronic auction and bidding tools that match supplier capabilities with sourcing requirements. Tight integration with product life-cycle management solutions – from SAP or any third party – enables superior supplier collaboration in engineered goods and materials sourcing processes. Contract Management Ensure compliance with negotiated terms and conditions. Centralized contract management allows dispersed purchasing departments in different business units to reuse preexisting contracts for specific product categories shared throughout the company. This helps increase global purchasing productivity. Catalog Management Create and manage a unified e-commerce catalog, using tools that import data from external sources, maintain consistent schemes, and index items for faster search capabilities.
Operational Procurement Operational procurement is the process of buying direct materials and services (those used in production) or indirect materials and services (those used for maintenance, repair, and operations). Capabilities include: Self-Service Procurement Empower employees to easily procure needed materials using a Web-based shopping cart that enforces compliance with corporate purchasing policies. By decentralizing procurement in this way, you will reduce overhead and allow purchasing professionals to focus on managing relationships instead of transactions. Plan-Driven Procurement Streamline and automate the procurement of materials used in core business processes by integrating purchasing with any supply chain management system.
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Figure 81: Operational Procurement
Services Procurement Reduce administration and processing costs associated with procuring a wide range of services, such as consulting and contract labor.
Supplier Collaboration Supplier collaboration provides a cost-effective way for suppliers to connect to a number of processes along the supplier relationship life cycle. Using a Web browser, suppliers can gain access to a supplier portal that could serve as a centralized hub for all supplier-related activities.
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Figure 82: Supplier Collaboration
Capabilities include: Supplier Registration Through supplier registration, purchasers have access to supplier-managed information for better sourcing decisions. Suppliers can manage their own company information, such as a business address, and can provide information about their capabilities in answer to requests for information. Once registered, a supplier can assign numerous users from their company to a supplier portal. Order Collaboration This streamlines procurement processes by providing supplier access to internal order management systems for processing orders and delivery schedules, managing invoices, and updating specifications electronically. The performance-reporting features of the supplier portal can also help suppliers manage catalog information and analyze important data such as inventory turnover, open purchase orders, contract history, or information on expiring contracts. Design Collaboration You can shorten product development cycles by permitting employees from different trading partners to effectively share relevant product and project information that is consistently and conveniently maintained at a central location, while keeping supporting and detailed information within the enterprise. This enables collaboration on design objects like specifications and bills of material. Collaborative Replenishment
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Optimize supply-chain performance by enabling suppliers to access customer inventory data and making them responsible for maintaining the inventory levels required by customers on an exception-based replenishment process. This reduces costs and increases the overall velocity and accuracy of the supply network. Supplier Connectivity Connect with suppliers of different sizes and capabilities using XML-based document exchange.
Integration The main operational components in the mySAP SRM solution are SAP SRM for the special functions required and SAP ERP Central Component as part of the ERP back end. In addition, SAP NetWeaver Exchange Infrastructure (SAP NetWeaver XI), delivered as part of SAP NetWeaver, is very important for connectivity and sending XML-based messages. Both professional purchasers and standard users (who can order their typical consumable materials from an electronic catalog, for example) work in SAP SRM through a Web browser. Purchase orders created in this way are then posted in the ERP back end for follow-up processes, such as goods receipt or invoice verification, and the data is available for material planning and availability checks.
Figure 83: Purchase Orders in mySAP SRM
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Lesson: Supplier Relationship Management
Besides this standard scenario, SAP SRM can also be used for a stand-alone-scenario, where the ERP back end is only utilized for the financial accounting posting. Procurement through mySAP SRM is a highly integrated process in the complete logistics value chain. Requirements for materials that are to be externally procured can be created through planning processes in mySAP SCM or through actual sales processes. Through automation of the actual purchasing process, the purchasing department can focus on strategic and quality improving tasks.
Figure 84: Main Components of mySAP SRM
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Lesson Summary You should now be able to: • Outline the tasks associated with the supplier relationship management process • Explain how SAP within the mySAP SRM application supports the key processes in supplier relationship management • Explain how SAP SRM integrates with other components and systems
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Lesson: Additional Processes and Product Lifecycle Management
Lesson: Additional Processes and Product Lifecycle Management Lesson Overview In this lesson you will receive an overview of mySAP Product Lifecycle Management.
Lesson Objectives After completing this lesson, you will be able to: • •
Outline the tasks associated with processes supporting sales order management, production, procurement, and product lifecycle management Explain how mySAP ERP and mySAP PLM support the key processes in product lifecycle management
Business Example As a fast growing global company, IDES must respond quickly to market and customer demands within a heterogeneous corporate system landscape. Intracompany mapping allows management to track changes within process departments.
Product Lifecycle Management Product Lifecycle Management, or PLM, has become a catchphrase. It is nevertheless a useful term to indicate that the concept of areas and single systems needs to be replaced by that of processes. Nowadays, the life cycle of a product – from product development, procurement, and production through to service – is characterized by strong intracompany divisions and a heterogeneous system landscape. Processes end artificially at system and departmental limits. A good example of this is the change process in construction. Traditional product data management systems merely map the change process in the construction department. During production processes, there is no support that enables construction changes to be introduced. However, thorough processes are necessary for a company to be able to react quickly to market and customer demands. mySAP PLM is SAP's solution to support you in these processes.
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Figure 85: mySAP PLM
The aim of mySAP PLM is to support the entire product life cycle. Starting in product development, the product data that is amassed is used for all subsequent processes. This enables other areas, such as mySAP Supply Chain Management, to benefit from the data. According to this principle, an integrated product development process goes far beyond the current methods used in product development. The development of mySAP Business Suite enables customers and vendors to be equally involved in the extended process chains of product development. The name Product Lifecycle Management (PLM) does justice to this approach.
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Figure 86: Product Lifecycle Management
mySAP PLM supports your company in product development, the maintenance of assets, and service processing for your products. For your company to be successful, it has to offer the right products at the right time and at the right prices. mySAP PLM enables you to do just this. The right products are those that meet your customers' needs. To find out what these needs are, you need to engage in a discussion process with your customers right from the start of development. During this process, both partners need to have access to the same documents. The product has to reach the market or be handed over to the customer at the right time. Delays increase costs and decrease your competitive ability. However, it is not only delays that lead to increased costs; changes made to products once they have been developed are also expensive. Early discussion with customers and the involvement of vendors and development partners at an early state can help keep down the cost of changes. Costs can often be reduced for service processing through preventative maintenance. When running assets, processing services, and developing products, the early involvement of customers and subcontractors reduces your costs and increases profitability. mySAP PLM brings together a number of benefits that help your company keep ahead of the competition. You can reduce costs through measures such as effective cost control in projects or by minimizing the maintenance costs of a piece of equipment. PLM also enables you to increase productivity; for example, by pooling information and sharing it with your partners and customers. You can also achieve higher productivity by quickly introducing new products to the market. One competitive advantage that should not be underestimated is the significance of customer satisfaction; involving your customers early on in the development process enables you to tailor your products to the needs of both customers and the marketplace. Finally, mySAP PLM has the advantage of
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being an integrated solution: product development, quality management, asset management, maintenance, and service management are all integrated and the life cycle is mapped in its entirety.
Figure 87: Key Functional Areas of mySAP PLM
mySAP Product Lifecycle Management offers all the functionality you need for integrated product and asset management. Features and functions include: Program and Project Management Provides advanced capabilities to plan, manage, and control the complete product development process. Life-Cycle Data Management Provides an environment for managing specifications, bills of materials, routing and resource data, project structures, and related technical documentation throughout the product life cycle. Life-Cycle Collaboration Supports collaborative engineering and project management, employing XML-based Web standards to communicate information such as project plans, documents, and product structures across virtual development teams. Quality Management Provides integrated quality management for all industries throughout the entire product life cycle. Enterprise Asset Management
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Manages physical assets and equipment, covering all components of an enterprise asset management system. Environment, Health and Safety Provides a solution for environment, health, and safety issues by enhancing business processes to comply with government regulations. mySAP PLM is a complete solution. It covers the entire life cycle from the point of view of both product providers and asset managers. mySAP PLM is aimed at providers of complete solutions who develop a product for a specific customer, manufacture and deliver this product to the customer, and then provide service activities for the customer once the product is live. Products that would benefit from service offers would be, for example, construction machinery, turbines, or even a water treatment plant. For example, you produce a bulldozer, modify it to meet the customer's requirements (so that it can be used in Alaska instead of California), and deliver it to the customer. You then draw up a maintenance contract with the customer to carry out regular inspections of the bulldozer.
Program and Project Management Successful project management means planning, controlling, and executing the essential project elements in accordance with the aims of the project. In this respect, professional project management is one of the most important factors in determining the competitiveness of a company. Successful project management relies on determining all processes necessary for the project and the ability to represent these in the form of a structure and process. The Project System makes available basic data, standard structures, and templates that assist in the creation of plans for different projects. A well structured project and clearly defined project aims form the basis for successful planning, monitoring, and control of the project.
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Figure 88: Program and Project Management
Depending on the project type and the aim of project monitoring, the project is structured in the project system either by using the project structure plan (PSP) and/or operations that can be linked to a network plan through relationships. The project structure plan represents the organizational structure of the project and describes it from the point of view of phases, functions, or the product. The tasks to be completed are arranged hierarchically in a project structure plan that divides the project into manageable sections. The individual elements of the project structure plans are called PSP elements. These can contain further subdivisions, depending on the project phase. The planning of the actual process takes place in network planning. The network plan describes the project flow. The fundamental elements that make up the network plan are operations and relationships. The network plans and associated operations form the basis for planning, analyzing and monitoring deadlines, costs, and resources, and for the workforce, capacities, materials, aids, and services needed for the different tasks in project execution.
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Figure 89: Project Management Structure
Project time monitoring takes place in the Project System using the options available under scheduling and schedule planning. The Project Planning Board provides a graphical interface for planning and controlling projects efficiently. You can use the project planning board to create, edit, and analyze data for your project (primarily regarding schedules). The combination of tabular data and graphical representation means that you have a comprehensive overview of the project at all times. The project planning board can be used to: • • • • •
Plan, check, and change schedules Plan, schedule, and check resources Determine and assign work Compare capacities Calculate costs
The central element of the project planning board is the Gantt chart. This consists of a tabular and graphical area and shows both the hierarchical structure of the project and the corresponding scheduling situation. You carry out work on the project in the Gantt chart. In addition to the PSP elements and operations, you can display or hide additional views such as the capacity overview or cost overview.
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Successful project management is based to a large extent on the close monitoring of all project processes. Costs, resources, and schedules have to be monitored closely so that you can identify any deviation from the project plan at an early stage. It is only possible to make exact statements about the project progress, current status, and further development if all parameters are represented along with their significance and are compared to the activities that have already taken place. The Project System enables effective planning, execution, and monitoring of the project progress. The program and project management key functional area of mySAP PLM offers reports for this.
cProjects In today's world, companies need powerful solutions that allow them to employ sophisticated project management methods that drive speed and quality. They also need easy-to-use and easy-to-implement tools that allow employees to work together to innovate, share knowledge, and track progress. What they don't need, however; is the traditional stand-alone project management “point solution” which tends to lead to islands of information and extensive integration efforts. In short, companies need a different approach: one that lets them manage projects more effectively today, without limiting their options for tomorrow. To help companies address those challenges, SAP offers SAP Collaborative Project Management. With SAP Collaborative Project Management, you can handle the entire range of project activities, from concept and planning through execution and the closing of a project, covering all project types, from development to service projects. Additionally, it enables companies to comply with industry standards by implementing project methodologies such as advanced product quality planning (APQP).
Figure 90: cProjects and Project System
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Collaborative Project Management, realized by cProjects, includes the management of templates, teams, phases, quality gates/milestones, tasks, scheduling, interactive Gantt chart, checklists, documents, object links, confirmation approval and digital signature, and a control plan. In addition, it supports multi-project management, the integration of Microsoft Project (export and import), the creation of project snapshots and simulation versions, the assignment of substitutes for tasks, and many more. cProjects uses cFolders to offer tightly integrated scenarios to jointly work on documents and tasks with external partners.
Life-Cycle Data Management Life-Cycle Data Management is process engineering and logistics data within a company and across company boundaries. The management and changing of product and project data dictates the most important day-to-day tasks. Every day, designers, work schedulers, and project managers need a sound basis for making decisions. Do they have immediate access to up-to-date and relevant information? It isn't easy - the volume and range of information that represents a product varies from phase to phase: documents and specifications in the design phase, material numbers, BOMs, and routings in the planning and production phases – all of which are fed with resource data – and finally equipment data for organizing service and maintenance work. This wide range of data can be managed with Life-Cycle Data Management - the backbone of all logistical processes. mySAP PLM offers the entire spectrum of tools for evaluating and distributing product and project data. This doesn't just cut administration costs; it systematically makes your product and process knowledge available in all systems. Transparent data storage and processes are the ideal basis for making sound decisions on introducing activities and tasks. This global view of a product is key to ensuring quality in all phases of the product's life cycle. The collaborative working environment of Life-Cycle Data Management provides all the key capabilities that are needed in all phases of a product's life cycle. Document Management Product ideas are often collected in the form of drawings or descriptions. Functional specifications for a new product are often compiled together with customers in a specification catalog. In specifications, you describe how you want to implement the product. Additional documents are created with increasingly sophisticated information technologies, such as CAx systems, digital mock-up, and the Internet, and models are integrated in the product design phase from the very start. This massive influx of information, which can take on enormous dimensions even in the design phase, can be stored in a variety of formats, such as paper, audio, or visual media.
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Figure 91: Life-Cycle Data Management
Recipe Management In the process industry, it is necessary to manage recipes with worldwide product and recipe definitions, which will then be adapted to different areas and production lines. Recipe Management facilitates the daily management of R&D departments, supports efficient knowledge-sharing, and leaves time for more creative and experimental work. It involves the manufacturing division at an early stage of development so that their input, together with the knowledge of the other departments, goes into adapting the developed product to the production lines. Integration CAD tools make the design process extremely productive by allowing to define or insert standard parts from a vast catalog. The mySAP PLM CAD and conversion interface makes this data available to employees outside of the design process at an early stage. At the same time, designers have access to the most up-to-date product data. Change and Configuration Management Most companies need to change the technical or aesthetic features of a product every day, and the correction of errors and deficits nearly always affects all areas of a company, so the potential for reducing cost-intensive change efforts is correspondingly high. mySAP PLM Life-Cycle Data Management gives you the flexibility to design your change processes and ensures that changes are an integral part of operational processes. Thus, product quality is constant in every phase of the product's life cycle, and you fulfill the high quality standards demanded by product liability laws.
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Product Structure Management The initial product design, specifications, CAD model data, materials, and BOMs are just some of the data that describes and structures a product. The product structure browser is the central navigation tool in the product structure. It provides an overview of all product-related information, such as: • • • • •
The material master Documents Bills of material (BOMs) Routings Information from classification
Life-Cycle Collaboration Collaboration is at the core of most team activities – be it an OEM working with members of its supply chain to quickly and efficiently design and build a product, or a project team trying to coordinate activities of its different members in order to meet its objectives. In fact, it is a strategic priority for companies in areas such as new product development. Collaboration lends itself naturally to an exchange environment by permitting employees from different trading partners to effectively share relevant product and project information that is consistently and conveniently maintained at a central location, while keeping supporting and detailed information within the enterprise.
Figure 92: Life-Cycle Collaboration
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mySAP PLM Life-Cycle Collaboration is focused on new product development and sourcing among multiple companies. It includes the following processes: Design Collaboration cFolders enable SAP customers to communicate with their partners and suppliers over back-end objects (for example, documents, materials, and BOMs in SAP PLM) without exposing their ERP system to them. Suppliers and partners of the SAP customer can change or modify the BOM, document, or material information in cFolders, and then back-end users can integrate these changes seamlessly from cFolders to the ERP system. Collaborative Project Management With SAP Collaborative Project Management, a company can handle the entire range of project activities, from concept and planning through execution and the closing of a project, covering all project types from development to service. Additionally, it enables companies to comply with industry standards by implementing project methodologies such as advanced product quality planning (APQP). Collaborative Project Management, realized by cProjects, includes the management of templates, teams, phases, quality gates/milestones, tasks, scheduling, interactive Gantt chart, checklists, documents, object links, confirmation approval and digital signature, and a control plan. In addition, it supports multi-project management, the integration of Microsoft Project (export and import), the creation of project snapshots and simulation versions, the assignment of substitutes for tasks, and many more. Quality Collaboration Quality notifications are a powerful tool you can use to handle all kinds of complaints or internal problems. It is possible to create notifications on the Internet and process them in the back-end SAP system. You may also use your own, scenario-dependent, HTML-based forms to enter whatever data is required for a notification or service request.
Quality Management Quality Management with mySAP PLM is a comprehensive solution that meets all quality management needs throughout the product life cycle and along the supply chain. It offers a wide range of integrated functions, collaborative services, and mobile solutions for assuring and managing the quality of products and assets.
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Figure 93: Quality Management
Quality management with mySAP PLM not only supports companies in the traditional tasks of inspection planning and processing, but also focuses on prevention and continuous process improvement through collaboration and sustained quality control. Key features are: Quality Engineering In the early stages of product design and development, it is important to have the proper quality tools and to implement the appropriate quality planning strategies in your processes. This can be instrumental in achieving a high and consistent level of quality for your products in the subsequent phases of the product life cycle. mySAP PLM offers a number of different solutions that support your product development processes, allowing you to produce and market products that will satisfy your customers. Quality Assurance and Control Once your quality processes are in place, you must strive to maintain and improve the attained level of quality. Quality control involves inspections at all stages, continuous monitoring, and intervening quickly to deal with unexpected events. Quality Management with mySAP PLM provides the necessary tools to help you monitor your processes and keep them under control. By integrating wide-ranging, flexible inspection processing functions into your regular quality procedures, you willll find it easy to stay on top of your processes. Quality Improvement Achieving high levels of performance and quality in your company's business processes doesn't happen by chance. It is the result of a dedicated and sustained effort to improve your company's business processes. Continuous process
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improvement should be a key element in your company's quality policy. Identifying problem areas, analyzing possible problem causes, and eliminating the root causes of these problems are important activities in achieving this goal. Quality Management with mySAP PLM provides the necessary tools to improve the quality of your products through prevention, efficient problem management, and evaluations. Audit Management In an audit, you methodically review and examine records and activities to determine whether the specification requirements of a process, system, or product have been met, and whether these requirements are suitable to achieve the desired objectives. mySAP PLM's Audit Management product is an easy-to-use, yet powerful tool that you can use to manage your audit processes. Regardless of your industry sector, this solution supports you throughout the entire audit process from the planning phase, through audit execution and valuation, to the evaluation phase. This is a highly flexible tool with open interfaces. It allows you to perform internal or external audits of systems, processes, or products, while taking the relevant standards into consideration. You can also perform any kind of review or survey based on checklists. mySAP PLM Audit Management also helps you to fulfil legal requirements and enables various scenarios for benchmarking.
Enterprise Asset Management Enterprise Asset Management serves asset and plant managers, maintenance engineers, and all those involved with the management of physical assets. It provides support from the first investment idea through procurement and start of operation, and right on until the end of operation and retirement of the asset. The SAP solution for enterprise asset management covers all components of a fully integrated enterprise asset management (EAM) system. Its integrated e-procurement capability makes it easy to order supplies and services, and the inventory management capabilities help improve the efficiency and performance of the equipment of the entire plant. Cost-effective asset management requires a detailed understanding of the costs caused by the individual asset, manufacturer, facility, or production site. SAP helps to identify problem areas and analyze their origin. Integrated technical reporting and detailed cost reporting help to optimize maintenance and support decision-making on all staff levels. The Enterprise Asset Management solution improves the profitability of your technical assets throughout all phases of the product's life cycle. During the selection procedure and procurement process, you can use evaluations of the current asset portfolio as the basis for defining technical and business selection criteria for new and replacement procurement measures.
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During plant operation, a complete and reliable plant maintenance solution leads to higher system availability and reduced breakdown costs by means of preventive inspections and maintenance. Integrated plant maintenance enables more transparent and simplified processes in maintenance. Therefore, material and labor costs can be reduced with the same level of system quality, and costs for the use of external service providers can be optimized.
Figure 94: Enterprise Asset Management
The relationship between business data and technical information supports management in making decisions about repair, refurbishment, and scrapping of technical assets. Enterprise Asset Management is a complete solution for achieving optimal condition of assets with the least cost and the best possible asset performance for all technical assets within your company. The solution scope includes: Investment Planning and Design The capital engaged in modern production companies is considerable. Most Enterprise Asset Management (EAM) systems would see the cost of an asset as being the costs for executed maintenance work and spare parts consumed. In SAP EAM, you can work with both eyes open when it comes to costs. An asset defined as a technical asset will automatically also appear as a financial asset and be subject to proper depreciation management.
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Procurement and Construction The process of building new production equipment will always involve a number of parties, including departments within your company and external parties like machine manufacturers, contractors, and suppliers of components. SAP’s Enterprise Asset Management enables collaborative engineering as well as electronic bidding, and thus helps you to: • • • • •
Plan, manage, and control the entire construction process Share schedule, task status, and responsibility across departments and with external partners Access any kind of documents, such as drawings, material master data, and bills of material Issue requests for quotation (RFQ) and reverse auction capabilities Identify the best contractor or supplier for the entire project, a specific service, or a piece of equipment
Maintenance Management The main functional areas of Maintenance Management are: Technical Asset Management Preventive and Predictive Maintenance Maintenance Execution MRO and Services Procurement Mobile Asset Management EAM Enterprise Portal Work Clearance Management Fleet Management Decommission and Disposal When the time comes to decommission production equipment, you will need to collaborate with other internal and external parties. The legal regulations for disposal of hazardous waste and the safety of the workers involved must be under full control.
Environment, Health and Safety National and international regulations, laws, and recommendations are confronting EH&S specialists with more and more tasks and obligations, and competition is not getting any less intense. mySAP PLM Environment, Health and Safety streamlines and automates the activities necessary to implement business processes safely, effectively, and in accordance with laws and regulations, thereby saving company time and money.
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Figure 95: Environment, Health and Safety
Concern about our environment and the health and safety of employees and customers needs to be backed up by competence and support in many areas. mySAP PLM Environment, Health and Safety offers help in the following areas: Product Safety Your company works with and produces many different products. Some of them might be risky to handle, so you want to make sure that everybody involved knows about the products – anywhere, anytime. Specification management forms the basis for most other SAP EH&S functions. It allows you to create a specification to describe physical or virtual entities or objects, such as substances (pure substances, preparations, mixtures, polymers), agents (noise, dust, physical strain, pollution), packaging (bottle, barrel, cardboard box, pallet), and dangerous goods classifications. Phrase management enables information to be handled effectively in standardized text elements in several languages. By defining phrase sets, you can assign phrases to the individual characteristics of the specification properties. Report generation and report management support the generation, management, and release of reports such as material safety data sheets and labels. Report shipping is used to ship the completed reports in compliance with the applicable legal requirements. Shipping can be triggered automatically from Sales Order Management, by a date-controlled check routine, or if a report has changed as a result of significant changes made to specifications or phrases. Via the data exchange interface, EH&S objects such as specifications, phrases, reports, report templates, property trees, and sources can be interfaced with SAP and non-SAP systems.
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The EH&S Expert and EH&S Easy Expert functions for determining secondary data provide an interface for deriving data automatically. EH&S Expert is a rule-based system that calculates secondary data from existing specification data in the SAP EH&S system and verifies specification data for correctness, based on sets of rules and a Boolean algorithm-driven rule engine. Hazardous Substance Management If hazardous substances are used in your enterprise, you have to protect your employees and the environment from the hazards caused by these substances. This is irrespective of whether your company produces or sells hazardous substances, or simply uses hazardous substances that it purchases. Furthermore, you also have to observe numerous rules and regulations worldwide; therefore, efficient hazardous substance management is becoming more and more important. In addition, high safety and environmental standards improve your company’s image, increase your market opportunities, and reduce costs and risks. The Environment, Health and Safety (EH&S) key functional area of mySAP Product Lifecycle Management (mySAP PLM) with the hazardous substance management key capability helps you to achieve these safety and environmental standards. Hazardous substance management with mySAP PLM Environment, Health and Safety helps you to manage the following tasks, which are also governed by laws in many countries: • • • • • • • • • • • •
Checking for alternative substances before purchasing or manufacturing a hazardous substance Blocking hazardous materials in purchasing Packaging and identifying hazardous substances in accordance with regulations Storing hazardous substances safely Managing up-to-date material safety data sheets and those that come from suppliers of hazardous substances Comprehensive documentation of all changes to hazardous substance information Determining all hazardous substances that occur and creating a hazardous substance inventory Determining and assessing risks in order to protect your employees Monitoring hazardous substance concentrations at the workplace Arranging, undertaking, and monitoring the success of protective measures Creating standard operating procedures for work areas and substances Carrying out health and safety briefings for your employees about handling hazardous substances
Dangerous Goods Management
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Does your company produce, ship, or transport chemical substances and products that are subject to dangerous goods legislation? Then mySAP PLM EH&S Dangerous Goods Management, an EH&S capability, is the right solution for you. Its close integration with the SAP system ensures that the capability supports all processes connected with the manufacturing and distribution of dangerous goods and also complies with valid national and international legislation. It comprises the following functions. Dangerous goods regulation data management enables you to store regulatory data for each dangerous goods regulation and UN number. Dangerous goods classification supports the classification of many assigned substances or materials very effectively. The dangerous goods master allows direct access from mySAP Supply Chain Management to perform dangerous goods checks and create dangerous goods documents. Dangerous goods checks in mySAP Supply Chain Management Sales and Distribution processes are supported. The dangerous goods checks are defined using highly flexible check functions. Dangerous goods checks are performed automatically online or in collective processing when you save a sales order processing document. The standard system offers the following check methods: • • •
Availability of all necessary regulatory data depending on the transportation route Approval for the mode of transport depending on all regulations derived from the transportation route Mixed loading prohibition
Tremcard management manages single or group tremcards (according to ADR marginal 10385). Tremcards are automatically printed in the languages of all countries the goods pass through and the driver's language. Dangerous goods-related data is integrated into mySAP Supply Chain Management documents. The delivery note and packing list are enhanced by printing dangerous-goods-related data for each item containing materials that are classified as dangerous goods according to the appropriate regulation. The dangerous goods regulatory data interface makes it possible to import the regulatory data that is offered by EH&S data content providers. Waste Management If your enterprise generates or disposes of waste, you are required to comply with many different laws and regulations, for example, 40CFR in USA, Kreislaufwirtschafts- und Abfallgesetz (KrW-/AbfG) in Germany, or the Environmental Protection Act and Codes of Practice in the UK. Waste Management with mySAP PLM Environment Health and Safety support you in conforming to the law. Just like the other mySAP PLM Environment, Health and Safety capabilities, waste management is fully integrated in the mySAP Business
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Suite solutions at the relevant points. This means you can use SAP EH&S to support all your disposal processes, monitor, and automate your compliance with all relevant national and international laws and regulations, and distribute the costs proportionally among the cost centers in your enterprise that generated the waste. In many cases, as a waste generator or waste disposer, you are required to take into account not only laws and regulations on waste, but also on hazardous substances and dangerous goods, and industrial hygiene and safety and occupational health. EH&S product safety, dangerous goods management, industrial hygiene and safety, and occupational health provide you with comprehensive support for this, making mySAP PLM EH&S the ideal complete solution for all waste-generating and waste-disposing enterprises. The primary benefits of Waste Management with mySAP PLM EH&S include: • • • • • •
Easy compliance to waste regulations and laws (national and international) Greater, more accurate control over waste generation and waste disposal Closer compliance to dangerous goods regulations More effective cost control More efficient time and resource scheduling Considerable reduction of administration effort
Industrial Hygiene and Safety In your company, many people work in many different areas. In these areas, employees are exposed to influences that could damage their health as well as the health of your customers, which reduce the effectiveness of your company. It is the task of industrial hygiene and safety to discover and control, or even to eliminate, these influences. The mySAP PLM EH&S Industrial Hygiene and Safety capability supports your company in fulfilling this task and, at the same time, helps you to comply with valid national and international regulations.
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mySAP PLM EH&S Industrial Hygiene and Safety offers the ideal solution in its close integration with the SAP system, ensuring that current data from logistics and human resources departments is always available. •
Obtain and store information on: Work areas Any substance or material used or stored in the company Exposure situation Status of safety measures Incidents and accidents Training courses and briefings planned and held
•
Technical equipment (functional location, equipment) Plan, manage, and document: Site inspections Risk assessments Hazardous substance inventory
•
Training courses and briefings Write and manage: Accident reports
• • • •
Standard operating procedures Keep an injury/illness log Keep an incident/accident log Keep statistics on IHS issues Comply with IHS laws and regulations
Occupational Health A healthy employee is one of the most valuable resources a company has. Keeping employees fit and supporting them when they are sick or injured is a good means of motivating them. Most companies provide health surveillance examinations in order to recognize, treat, and prevent potential health risks. By doing so, the company not only makes sure every employee is being cared for healthwise, but the company also complies with many laws and regulations. This used to be very time-consuming. With mySAP PLM EH&S Occupational Health, however, company occupational physicians have a tool that will support them in their tasks most effectively.
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mySAP PLM EH&S Occupational Health enables the physician to obtain and store information on all activities related to the physician's daily tasks, such as: • • • • •
Carrying out health surveillance protocols Recording minor injuries, vaccinations, and consultations Making diagnoses Printing medical certificates for employees Writing reports and collating statistics
Health issues are always subject to medical confidentiality. mySAP PLM EH&S Occupational Health takes this into account and gives only employees with appropriate authorization access to confidential medical data. Additionally, mySAP PLM EH&S Occupational Health can be run on a separate system instance. mySAP PLM EH&S Occupational Health is fully integrated with mySAP PLM Environment, Health and Safety and with mySAP ERP Human Capital Management. This reduces redundant data maintenance to a minimum.
Integration The functions of mySAP PLM are also core functions of the mySAP ERP solution. They run in the same system and are directly connected to the logistic functions in mySAP ERP. Additional functions are delivered through the cProject Suite.
Figure 96: Main Components of mySAP PLM
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Lesson: Additional Processes and Product Lifecycle Management
Exercise 16: Maintaining Materials with the Product Structure Browser Exercise Objectives After completing this exercise, you will be able to: • Use the product structure browser to obtain current product details • Use the product structure browser to change the product structure
Business Example You want to know the current data maintained for a pump and change one of the components.
Task: Using the product structure browser, obtain an overview of the current and future product data for the Pump R-F1##. 1.
Access the product structure browser for Pump R-F1##. Which object types are linked to or use this material? Object Type
2.
In the product structure browser, display the pump components. What components (other then drawings) make up the bill of material for plant 1000? What is the material number of the fly wheel? Number
Fly Wheel
3.
A technical drawing is assigned to the material (as a document). Display the original drawing. Continued on next page
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From next month, another fly wheel is to be used for this pump. Use the product structure browser to change the bill of material for Pump R-F1## with the change number C99–##. Material Number
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Old component:
R-B2##
New component:
T-B2##
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Lesson: Additional Processes and Product Lifecycle Management
Solution 16: Maintaining Materials with the Product Structure Browser Task: Using the product structure browser, obtain an overview of the current and future product data for the Pump R-F1##. 1.
Access the product structure browser for Pump R-F1##. Which object types are linked to or use this material? Object Type Documents Classification Bills of material (BOM) Routings a)
From the SAP Easy Access menu, choose Logistics → Central Functions → Engineering → Environment.
b)
Choose
c)
Enter Material: R-F1##.
d)
Choose Enter to continue.
e)
Write down the object types that are displayed in the table provided.
Product Structure.
Hint: Remain in the product structure browser for the next step. 2.
In the product structure browser, display the pump components. What components (other then drawings) make up the bill of material for plant 1000? What is the material number of the fly wheel? Number 4
Continued on next page
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Fly Wheel R-B2## a)
From the product structure browser, choose Bills of Material.
b)
Choose R-F1## 1000 1 01.
c)
Choose Items.
d)
Write down the number of components in the bill of material in the table provided.
e)
Write down the material number of the fly wheel in the table provided. Hint: Remain in the product structure browser for the next step.
3.
A technical drawing is assigned to the material (as a document). Display the original drawing. a)
From the product structure browser, choose Documents.
b)
Choose
c)
Choose Training and press ENTER to continue.
d)
Mark one of the bitmap files for display and choose Continue
e)
Choose Close Viewer.
Display Original.
Hint: Remain in the product structure browser for the next step. 4.
From next month, another fly wheel is to be used for this pump. Use the product structure browser to change the bill of material for Pump R-F1## with the change number C99–##.
Continued on next page
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Material Number
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Old component:
R-B2##
New component:
T-B2##
a)
From the product structure browser, choose Bills of Material.
b)
Click with the secondary mouse button on the bill of material R-F1## 1000 1 01.
c)
Choose Change.
d)
Leave the entries for Material: R-F1##, Plant: 1000, and BOM Usage: 1.
e)
Enter the Change Number: C99-##.
f)
Press ENTER or choose Enter twice to confirm the Valid From date, which is read from the change number.
g)
Replace the Component R-B2## with the new component, T-B2##.
h)
Choose Save.
i)
To control your entry, leave the product structure browser by choosing Back.
j)
On the Product Structure Browser: Initial Screen, choose Selection date.
k)
Enter Validity Date: and confirm with Continue.
l)
Press ENTER or choose Continue to display the product structure.
m)
Display again the bills of material for R-F1## 1000 1 01 and review the items.
n)
Choose Exit twice to exit the screen and return to the SAP Easy Access menu.
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Lesson Summary You should now be able to: • Outline the tasks associated with processes supporting sales order management, production, procurement, and product lifecycle management • Explain how mySAP ERP and mySAP PLM support the key processes in product lifecycle management
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Unit Summary
Unit Summary You should now be able to: • Discuss the various key operational processes • Illustrate the integration between the key operational processes • Outline the tasks associated with sales order management • Explain how SAP within mySAP ERP supports the key processes in sales order management • Outline the tasks associated with the customer relationship management process • Explain how SAP supports the key processes in customer relationship management with the mySAP CRM application • Outline the tasks associated with production planning and manufacturing execution • Explain how mySAP ERP supports key processes in production • Outline the tasks associated with the supply chain management process • Explain how SAP within the mySAP SCM application supports the key processes in supply chain management • Explain how SAP SCM integrates with other components and systems • Outline the tasks associated within the procurement cycle • Explain how SAP within mySAP ERP supports the key processes in Procurement • Outline the tasks associated with the supplier relationship management process • Explain how SAP within the mySAP SRM application supports the key processes in supplier relationship management • Explain how SAP SRM integrates with other components and systems • Outline the tasks associated with processes supporting sales order management, production, procurement, and product lifecycle management • Explain how mySAP ERP and mySAP PLM support the key processes in product lifecycle management
Related Information •
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For related Glossary links refer to: help.sap.com/content/additional/glossary
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Test Your Knowledge
Test Your Knowledge 1.
Which of the following is the correct sales order management process? Choose the correct answer(s).
□ □ □ □ □ 2.
A B C D E
Picking, Sales Order, Goods Issue, Billing, Delivery Sales Order, Picking, Goods Issue, Billing, Delivery Sales Order, Delivery, Picking, Goods Issue, Billing Goods Issue, Picking, Sales Order, Delivery, Billing None of the above
What three activities can be done with a delivery document? Choose the correct answer(s).
□ □ □ □ □ 3.
A B C D E
Picking Debit Memo Packing Credit Memo Goods Issue
When you post goods issue on a delivery document, an accounting document is created in financial accounting. Determine whether this statement is true or false.
□ □ 4.
True False
A billing document can be created from what two different type of documents? Choose the correct answer(s).
□ □ □ □ □ 5.
A B C D E
Inquiry Sales Order Quotation Rebate List Delivery
Document flow only shows the status of the order document. Determine whether this statement is true or false.
□ □
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True False
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During the creation of the billing document, an accounting document is created in financial accounting, thus creating an accounts receivable. Determine whether this statement is true or false.
□ □ 7.
True False
Key capabilities of SAP Customer Relationship Management are , , and . Fill in the blanks to complete the sentence.
8.
The four customer interaction channels of SAP CRM are , , and .
,
Fill in the blanks to complete the sentence.
9.
What SAP components are included in the mySAP CRM solution? Choose the correct answer(s).
□ □ □ □ □
A B C D E
SAP Business Information Warehouse SAP Enterprise Portal SAP ERP Central Component All of the above None of the above
10. Which of the following processes (applications) is NOT part of the Production Planning processes? Choose the correct answer(s).
□ □ □ □ □
A B C D E
Sales and Operations Planning Delivery Processing Material Requirements Planning Manufacturing Execution Master Production Scheduling
11. In Sales and Operations Planning, you cannot create sales plans and/or production plans. Determine whether this statement is true or false.
□ □
276
True False
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Test Your Knowledge
12. Which of the following pieces of information is available from within the production order? Choose the correct answer(s).
□ □ □ □ □ □
A B C D E F
Order components Production dates Production instructions Order costs All of the above None of the above
13. Name the manufacturing execution process step that allows someone to enter the actual time and activities of the various operations during the production process. Choose the correct answer(s).
□ □ □ □ □
A B C D E
Disaggregation Confirmation Material Requirements Planning Costing None of the above
14. Name one of the two main components of the mySAP SCM solution. Choose the correct answer(s).
□ □ □ □
A B C D
Customer Relationship Management RFID Global Available-to-Promise SAP ERP Central Component
15. Supply Chain Collaboration supports supplier-managed inventory. Determine whether this statement is true or false.
□ □
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True False
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16. Order promising, which includes Global Available-to-Promise, is the critical link between which two solutions? Choose the correct answer(s).
□ □
A B
□
C
□
D
SAP NetWeaver and reporting mySAP Supplier Relationship Management and SAP Business Information Warehouse mySAP Customer Relationship Management and mySAP Supply Chain Management mySAP Supply Chain Management and SAP NetWeaver
17. What is the basic procurement process in an SAP system? Choose the correct answer(s).
□ □
A B
□ □
C D
Inquiry, sales order, purchase order, delivery Purchase requisition, purchase order, goods receipt, invoice receipt Sales order, production order, purchase order Goods receipt, purchase order, invoice receipt, vendor master
18. When you enter an invoice with reference to a purchase order, the system suggests data from the purchase order and the goods receipts. Determine whether this statement is true or false.
□ □
True False
19. Self-Service Procurement does not empower employees to create and manage their own requisitions. Determine whether this statement is true or false.
□ □
True False
20. mySAP SRM can only manage the direct procurement of goods and services. Determine whether this statement is true or false.
□ □
278
True False
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Test Your Knowledge
21. Which of the following is an operational procurement process within mySAP SRM? Choose the correct answer(s).
□ □ □ □ □
A B C D E
Design collaboration Supply strategy development Self-service procurement Supplier Registration Spending analysis
22. It is impossible to create a catalog with mySAP SRM. Determine whether this statement is true or false.
□ □
True False
23. Life-cycle Data Management can only be used when the design of a product is finished. Determine whether this statement is true or false.
□ □
True False
24. Which of the following areas are key functional areas of mySAP PLM? Choose the correct answer(s).
□ □ □ □ □
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A B C D E
Life-Cycle Data Management Environment, Health and Safety Quality Management Enterprise Asset Management Development Management
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Answers 1.
Which of the following is the correct sales order management process? Answer: C The sales order must be created first, followed by the delivery document, picking, posting goods issue, and, finally, billing.
2.
What three activities can be done with a delivery document? Answer: A, C, E From a delivery document, you can pick, pack, and post goods issue.
3.
When you post goods issue on a delivery document, an accounting document is created in financial accounting. Answer: True Posting goods issue in sales order management causes an accounting document to be created in financial accounting. This records the financial impact of goods leaving your premises.
4.
A billing document can be created from what two different type of documents? Answer: B, E A billing document can only be created from a sales order or delivery. Inquiry and quotation documents and rebate lists in the standard system are not billable, since no goods or services have been rendered.
5.
Document flow only shows the status of the order document. Answer: False Document flow can show the status of any document that is listed in document flow. By choosing the document and choosing the status action, you can view a variety of information statuses about the document.
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Test Your Knowledge
6.
During the creation of the billing document, an accounting document is created in financial accounting, thus creating an accounts receivable. Answer: True As soon as the billing document is created, it is automatically passed to financial accounting and the appropriate entries made to the general ledger accounts.
7.
Key capabilities of SAP Customer Relationship Management are marketing, sales, and service. Answer: marketing, sales, service
8.
The four customer interaction channels of SAP CRM are field, Interaction Center, Internet, and channel partners. Answer: field, Interaction Center, Internet, channel partners
9.
What SAP components are included in the mySAP CRM solution? Answer: D A through C are all components in the mySAP Customer Relationship Management solution.
10. Which of the following processes (applications) is NOT part of the Production Planning processes? Answer: B Delivery processing is part of the functionality of Sales Order Management. All of the other processes listed (SOP, MRP, MPS, and manufacturing execution) are part of production. 11. In Sales and Operations Planning, you cannot create sales plans and/or production plans. Answer: False In SOP, you can execute and refine your forecasts and disaggregate them from a high-level viewpoint down to the product level. SOP can forecast on any aggregated level of the planning hierarchy, whether production or sales-related. The system can then automatically disaggregate your forecasts to generate material-specific requirements.
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12. Which of the following pieces of information is available from within the production order? Answer: E The production order, which is the central data object in shop floor control and manufacturing execution, contains all data relevant to production objectives, material components, required resources, and costs. 13. Name the manufacturing execution process step that allows someone to enter the actual time and activities of the various operations during the production process. Answer: B A production order confirmation allows someone to enter the actual time and activities of the various operations during the production process. For example, a confirmation can capture information such as quantity produced by operation, production personnel, production dates, goods movements, and amount of activity (for example, labor hours). 14. Name one of the two main components of the mySAP SCM solution. Answer: D The two main components in the mySAP SCM scenario are SAP ERP Central Component and SAP Supply Chain Management. While most of the execution processes are performed in SAP ERP Central Component, SAP SCM is responsible for optimized planning and delivers additional functionality for coordination and collaboration. 15. Supply Chain Collaboration supports supplier-managed inventory. Answer: True mySAP SCM supports supplier-managed inventory (SMI) by allowing companies to use the Internet to gain visibility into their suppliers and to manage the replenishment process. Suppliers can see the status of their parts at all plants, receive automatic alerts when inventory levels get low, and respond quickly via the Web. mySAP SCM immediately integrates the latest inventory and replenishment information with back-end transaction and planning systems, so all parties remain up-to-date.
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Test Your Knowledge
16. Order promising, which includes Global Available-to-Promise, is the critical link between which two solutions? Answer: C Order promising is based on the Global Available-to-Promise (Global ATP) capability. Order promising receives queries from order management or CRM systems, and determines when a product is available across a fulfillment network or can be built. It also shows how much the product will cost, and how long it will take to deliver. Order promising is the critical link between order management/CRM systems and supply chain planning systems, providing a window into product availability. 17. What is the basic procurement process in an SAP system? Answer: B In the SAP system, the standard flow of transactions in the basic procurement process is as follows: Purchase requisition processing → Purchase order processing → Goods receipt entry → Invoice receipt entry. 18. When you enter an invoice with reference to a purchase order, the system suggests data from the purchase order and the goods receipts. Answer: True An advantage of entering an invoice with reference to a purchase order is that the system suggests this data, thereby eliminating the need to re-enter the data. 19. Self-Service Procurement does not empower employees to create and manage their own requisitions. Answer: False An advantage of using Self-Service Procurement is that it does empower employees to create and manage their own requisitions. It relieves your purchasing department of this administrative burden while making the procurement process both faster and more responsive. 20. mySAP SRM can only manage the direct procurement of goods and services. Answer: False mySAP SRM manages the indirect purchasing operations of the entire organization, and handles requirements of direct procurement.
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21. Which of the following is an operational procurement process within mySAP SRM? Answer: C Self-service procurement empowers employees to easily procure needed materials using a Web-based shopping cart that enforces compliance with corporate purchasing policies. 22. It is impossible to create a catalog with mySAP SRM. Answer: False Catalogs maybe created and managed by using tools that import data from external sources, maintain consistent schemes, and index items for faster search capabilities. 23. Life-cycle Data Management can only be used when the design of a product is finished. Answer: False Life-Cycle Data Management can manage the data during all phases of a material: in the design phase, the planning and production phase, and the maintenance phase. 24. Which of the following areas are key functional areas of mySAP PLM? Answer: A, B, C, D From the choices, only Development Management is not a key functional area of the mySAP PLM solution.
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Unit 5 Financials Unit Overview This unit will provide you with an overview of the functions of mySAP ERP Financials.
Unit Objectives After completing this unit, you will be able to: • •
Outline the tasks associated within Financial Accounting and Management Accounting Explain how SAP within mySAP ERP Financials supports the key processes in Financial Accounting and Management Accounting
Unit Contents Lesson: Financials ..............................................................286 Exercise 17: Financials ....................................................305 Exercise 18: Profitability Analysis .......................................313 Exercise 19: Product Cost Controlling...................................317
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Lesson: Financials Lesson Overview In this lesson, we will discuss the business processes in Financials that are part of mySAP ERP.
Lesson Objectives After completing this lesson, you will be able to: • •
Outline the tasks associated within Financial Accounting and Management Accounting Explain how SAP within mySAP ERP Financials supports the key processes in Financial Accounting and Management Accounting
Business Example The financial department of IDES is required to regularly assess the company’s financial status from a legal perspective, as well as monitor internal costs. As a manager working for IDES, you are interested in analyzing costing reports for your department.
Financials mySAP ERP Financials provides a complete financial management and accounting solution for a broad range of industries. The solution enables your enterprise to optimize its financial supply chain and improve internal control processes for effective corporate governance. With mySAP ERP Financials, your enterprise can realize secure and transparent accounting, improve its analytical capability, and proactively manage business performance, profit, and growth. mySAP ERP Financials enables superior control and integration of the financial and business information essential to strategic and operational decision-making. It improves management of internal controls, simplifies financial analysis, and enables adaptive business processes. With mySAP ERP Financials, you can transform finance from an administrative function into a value-focused and strategic part of your organization.
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Lesson: Financials
Figure 97: mySAP Financials
Financial Accounting Company-wide control and integration of financial information is essential to strategic decision making. mySAP ERP Financials gives you the ability to centrally track financial accounting data within an international framework of multiple companies, languages, currencies, and charts of accounts. For example, when raw materials move from inventory into manufacturing, the system reduces quantity values in inventory and simultaneously subtracts monetary values for inventory accounts in the balance sheet. The financial accounting function complies with international accounting standards such as GAAP and IAS. It also fulfills the local legal requirements of many countries and fully reflects the legal and accounting changes resulting from European market and currency unification.
Tasks in Financial Accounting The Financial Accounting focuses on the General Ledger (G/L), the processing of receivables and payables, and Asset Accounting. Important tasks of Financial Accounting are the recording of monetary and value flows as well as the evaluation of inventories. The General Ledger contains a recording of all accounting-relevant business transactions on to G/L accounts from a business point of view. Every general ledger is structured in accordance with a chart of accounts.
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The chart of accounts contains structured definitions of all G/L accounts in the general ledger. These definitions basically include the account number, the G/L account designation, and the categorization of the G/L account as an income statement or balance sheet account. For reasons of clarity, the General Ledger often contains only collective postings. In such cases, the posting data is represented in different way in so-called subledgers, which pass on their data compressed to the General Ledger. Reconciliation Accounts link the subledgers to the General Ledger in real time. As soon as a posting is made to a subledger account, the same posting is made to the respective reconciliation account in the general ledger. The Accounts Payable Accounting (A/P) records all business transactions that have to do with the relationships to suppliers. It takes much of its data from Procurement. Accounts Receivable (A/R) records all business transactions that have to do with the relationships to customers. It takes much of its data from Sales Order Managment. Bank accounting supports the booking of cash flows. Asset Accounting (AA) records all business transactions that have to do with the management of assets. All postings that are executed for the asset (acquisitions, retirements, depreciations, and so on) are recorded within the assigned company code. It often happens that asset lists and movements have to be evaluated differently for different purposes; for example, different valuation approaches should be used for: • • • •
Trade balancing of an account according to regional requirements Financial statements for tax purposes (insofar as another valuation is permitted) Internal accounting (costing) Parallel accounting standards for the group balancing of accounts (according to IAS, US-GAAP, and so on)
For many companies today, it may be necessary to prepare a balance sheet not only for national accounting standards, but also to be in accordance with other valuation guidelines such as IAS (International Accounting Standards) or US-GAAP (General Accepted Accounting Principles). The reasons for this can be the access to international capital markets, an orientation towards foreign shareholders, global mergers and acquisitions, or increased transparency. In order to be able to carry out these different valuation approaches, valuation areas are established in the SAP ERP system. These parallel accounting standards can be realized with mySAP ERP Financials by handling the different valuations on different G/L accounts. These G/L accounts are used in different balance sheet / profit/loss structures. EC-CS (Enterprise Controlling - Consolidation) forms the group structure using consolidation groups and units for the tasks of Consolidation. Consolidation groups are defined for each hierarchy. They represent levels and consolidation takes place on these levels. Consolidation groups can be subgroups (company consolidation), business areas (business area consolidation), or profit centers and hierarchy nodes (profit center consolidation). The objects that are to be
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consolidated hang below the consolidation groups and are called consolidation units. Depending on the consolidation type, these are companies, combinations of companies and business areas, or combinations of companies and profit centers. SEM-BCS (SEM-Business Consolidation) can be used for internal management consolidation based on any characteristics.
Figure 98: Financial Accounting
The General Ledger is managed at company code level and, from this, the balance sheets required by the legislator as well as the profit and loss (P/L) statements are compiled. The assets of a company are listed in the balance sheet, divided into Assets (application of funds) and Liabilities (source of funds). In terms of integration, the business transactions that are entered in the subledgers, as well as those entered in Materials Management (material stock) or Financial Supply Chain Management, also flow into the balance sheet in real time. The Financial Supply Chain Management (FSCM) component concentrates on functions such as means of payment, funds, foreign exchange, securities, loans, and market risk management (Corporate Finance Management). The aim of recording business transactions is to create a Balance Sheet and Profit and Loss Statement in the sense of a report. These reports must be adapted to the specific national requirements. Various balance sheet and profit and loss structures can be set up in the SAP ERP system for the different reporting requirements. In these Balance Sheet and Profit and Loss structures, it is defined exactly which accounts should appear in which balance sheet items. Many Balance Sheet and P/L Structures are already delivered as predefined. Financial reports that are
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required for external reporting purposes are created in Financial Accounting. These external reporting requirements, like the different legal requirements of the relevant financial authorities, are provided, as a rule, by general accounting standards such as US-GAAP or IAS. Two procedures can generally be applied for structuring the profit and loss statement: • •
Period Accounting Cost-of-sales Accounting
Both procedures result in the same operating income. Which of these procedures should be used is either stipulated by legal regulations, or can be selected freely when there is a legal option. In this case, the decision in favor of one of the procedures is made based on an analysis from a business point of view (for example, international comparability).
Figure 99: Balance Sheet & Profit and Loss Statement
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New General Ledger in mySAP ERP
Figure 100: General Ledger Accounting
Activating the new General Ledger has many advantages. Management and Segment reporting Legal and management segment reporting is enhanced. Extensibility and International accounting standards Options to expand standard accounting functions are supported within the new general ledger both for the International and the Industry specific. The new general ledger supports international requirement by the integration of management dimension in to GL and the supporting of “simple cost-accounting”. Customers can also define their own standards and terminology Balanced Book by any Dimension This area is essential to reporting balance sheet for segments. The real time document split feature of the new general ledger makes it possible to control balance sheets entities using “segments”. This feature aids in meeting legal requirements. Parallel set of books Parallel Accounting is possible within the GL by the assignment of one lead ledger. All company codes are then assigned to the lead ledger. Management accounting is also integrated to the lead ledger. The new GL makes it possible to manage multiple “books” within the general ledger. When the new general ledger is active, a Financial Accounting document always has two views: The “entry” view and the “general” ledger view. The entry view is how the document appears in the subledger of accounts payable or accounts receivable. The general view is how the document appears only in the general ledger.
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Fast Close Activating the new general ledger allows for the unification of Financial and Management Accounting, this unification eliminates inconsistencies and eliminates reconciliation processes. Data is posted real time from Financial to Management accounting allowing Legal and Management data to reside in one uniform database. TCO reduction Using the new GL reduces data redundancy, eliminates reconciliation efforts, and reduces implementation cost. International accounting standards Options to expand standard accounting functions are supported within the new general ledger both for the International and the Industry specific. The new general ledger supports international requirement by the integration of management dimension in to GL and the supporting of “simple cost-accounting”. Legal Requirements and Compliance This area of the new GL covers the ever increasing need to meet new Legal requirements.
Financial Supply Chain Management Financial Supply Chain Management represents a major area of process innovation and improvement for enterprises in a broad range of industries. Over the last several decades, there has been little improvement in the areas of: billing, accounts receivable, collections, dispute resolution, credit scoring and cash management. Today, many businesses see these functions as a prime area for process improvement and source of greater cost-savings. •
•
Electronic Bill Presentment and Payment (Biller Direct and Biller Consolidator) allows billers to send and customers to receive invoices electronically, making invoicing more efficient. In addition, suppliers can access account information via the Internet. Dispute Management offers you system support for processing payment deductions. There are a variety of reasons why a payment may be reduced: – – – – – –
Supply or service is incomplete (lack of quantity) Quality of the delivery or service is deficient (lack of quality) Price and service do not match (price variance) Delivery date is exceeded (time variance) Deduction because of trade promotion Misunderstanding between the business partners
There are more and more payment deductions due to these reasons as payment behavior continues to get worse. Dispute Management enables cross-departmental resolution of dispute cases including workflow support and escalation procedures. This improves Receivables Management and speeds up invoice settlement.
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•
•
•
•
Collections Management evaluates, identifies, and prioritizes accounts. Managers are also able to collect receivables proactively and collaborate with external and internal business partners. Credit Management enables a cross-company credit limit check and variable monitoring of a customer on all distribution channels. You can analyze customer creditability taking into account your company's credit policy. The aim of Cash Management is to secure the liquidity and optimization of financing costs. The Transaction Manager provides an instrument for corporate finance management departments to settle mid and long-term financial transactions from entry to the transfer of the relevant data to Financial Accounting. In-House Cash enables international companies to manage internal and external payment flows efficiently. You configure an In-House Cash Center centrally and use it to process payments between the individual company units. The In-House Cash Center corresponds to a virtual bank where the subsidiary companies have current accounts. For the associated companies, the In-House Cash Center is just another house bank, which they use primarily to process payables and receivables involving other group companies. At the same time, you can set up accounts for external companies that are not associated with the group. This allows them to be included in the netting process.
•
Treasury and Risk Management provides straight processing of financial transactions, enables evaluation and identification of interest rate and currency risks, calculates financial credit exposure, and provides central reporting on financial positions.
Figure 101: Financial Supply Chain Management
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Electronic Bill Presentment and Payment Most bills still reach customers the classic way, that is, by mail. The traditional method of sending bills by mail has various disadvantages, including: •
• •
Both the biller and the customer have to go through numerous individual steps to process the transaction. The biller prepares the bill and then sends it. The customer receives the bills and checks the content. This takes a lot of time and is subject to error. High costs for creating a bill. Processing incoming payments can be very time consuming, particularly if only part of the bill is paid or if you cannot assign payments.
Electronic Bill Presentment and Payment enables you to prepare and display bills within different scenarios from B2B (business-to-business) and B2C (business-to-customer) via the Internet. Using Electronic Bill Presentment and Payment makes several individual processing steps superfluous. This reduces the amount of time required to forward the bill information to the customer. Streamlining the process can reduce the costs per bill by up to 70%. Electronic Bill Presentment and Payment can be implemented to show customers bill information via the Web (Electronic Bill Presentment). The customer receives the billing information and can carry out various actions, such as arrange payments, for example, by credit card or direct debit, or submit questions and complaints. There is complete integration with the open items and bill data. Electronic Bill Presentment and Payment can also be integrated into industry-specific portals.
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Figure 102: Electronic Bill Presentment and Payment vs. Traditional Invoicing
Electronic Bill Presentment and Payment Models There are three Electronic Bill Presentment and Payment models. In the Biller Direct model, the billers exchange their bills with several customers directly via the Internet (1:n relationship). In the Biller Consolidator model, several billers exchange bills with several customers (n:n relationship) via the consolidator. In both consolidator models, you can decide whether data is exchanged exclusively with the Thick Consolidator (complete use) or whether data is only partially exchanged with the Thin Consolidator (partial use). With the thin consolidator model, the invoicing party supplies only the most important data (invoice header information). The invoice recipient is presented with only the invoice overview in the Consolidator Portal. For further details, the invoice recipient can click a link to the homepage of the invoicing party and receive detailed information and possibly marketing material (cross-selling). With the thick consolidator model, the invoicing party sends his or her invoices with all the detailed information. The Biller Direct model is defined in such a way that there is no consolidator between the biller and the bill recipient. Once the purchase, order, and delivery have taken place, the bill is created. Purchase and order take place in the usual way, the bill is sent via the Internet. The customer then logs on to the biller's homepage and can display his bills. He can either pay the bills directly from there, or transfer the information to his own system. He can download the information in Microsoft Excel, and then upload it and convert it into incoming bills in the SAP system. If the customer pays via the Internet, then either the money is
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collected from the customer's bank and the customer's bank checks the collection authorization, or the customer sends a payment notification to his bank, and the bank forwards the transfer to the biller's bank.
Figure 103: Electronic Bill Presentment and Payment Models
Corporate Governance One of the challenges facing organizations today is complying with an increasing number of national and international legal requirements for financial reporting and corporate governance. Statutes like Basel II and the Sarbanes-Oxley Act increase workloads and operational costs in finance organizations.
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Figure 104: Corporate Governance
mySAP ERP Financials provides comprehensive functions that reduce the overall cost of managing internal controls and ensure adherence to standards and corporate governance laws. This includes: Management of Internal Controls (MIC) Management of internal controls helps you to: • • • •
Certify the accuracy of quarterly and annual financial statements and disclosures Design, establish, and maintain disclosure controls and procedures Evaluate the effectiveness of disclosure controls and procedures and report on the effectiveness of the controls Indicate, in each periodic report, any significant changes in internal controls, including any deficiencies and material weaknesses that have taken place since their most recent evaluation
Audit Information System (AIS) As the auditor's toolbox within the SAP environment, the AIS application helps you become compliant primarily with corporate governance requirements (for example, SOA sections 302 / 404) via: • • • •
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Comprehensive functionality for system and business audits Drill-through audit trail to the document level for exceptions Test results for system inherent and security controls Reporting controls in a structured approach
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Whistleblower complaints Supporting SOA section 301, the SAP Whistle Blower application assists you in: • •
Sending anonymous complaints Analyzing anonymous complaints
Basel II Basel II is the new capital requirement regulations for financial institutes issued by The Basel Committee on Banking Supervision, involving: • •
New capital adequacy framework banks’ improved risk assessment capabilities Consultations of the central banks of the G10+ countries
Management Accounting mySAP ERP enables the valuation and recording of financial data, not only for financial reporting, but also as the basis for all cost- and revenue-related reporting. As a result, analysts and managers can work with the same basic data as the company's financial accountants. Because financial data is tightly integrated with the business processes of mySAP ERP logistics applications, users can also easily obtain detailed information about cost structures and profit margins. Easy access to this data helps support and enable management to achieve business goals such as increasing revenue, maximizing customer profitability, reducing operating costs while increasing efficiency, reducing the cost of goods sold, and improving the visibility of inventory.
Areas in Management Accounting Management Accounting is assigned the task of recording all business-related expenses and revenues in detail in order to provide more exact information about the utilization of costs and assets within the company. Cost Element Accounting provides information about what type these costs or revenues are (for example, personnel costs). It offers a structure for the assignment of management accounting data by classifying the transaction items that are posted to a respective Controlling object (for example, a cost center or an internal order) depending on the type of cost or revenue they represent. Overhead Cost Controlling focuses on assimilating costs that cannot be directly assigned to the goods and services of a company and, when possible, allocating them further on a cause-effect basis. Account assignments for such costs are, for example, cost centers and internal orders. Cost centers therefore provide information about where costs are incurred in the company. This means that within the framework of the planning process, not only costs but also internal services can be planned and utilized for price calculations of the activity type. If,
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over the years, the cost centers render services for other cost centers or for the value-adding area of the company, the services – evaluated with the prices – find their way to the respective recipients (consumers). At the end of the period, the balances of the overhead costs objects are determined and allocated further to Product Cost Controlling or to profitability and sales accounting. Overhead Cost Controlling therefore examines the cost causation of the company's functional areas. The proportion of overhead costs has increased rapidly in many companies. While a great deal of progress in cost controlling and process optimization has been achieved in the production areas, the overhead costs are still not very transparent, meaning that it remains difficult to assess why these costs have been incurred. Activity-Based Costing within Overhead Cost Controlling provides you with easy access to further process-oriented, cross-functional allocation methods for costs. Product Cost Controlling assimilates the costs for the creation of goods and services (and, in certain cases, their sales revenues) and settles these in Financial Accounting or in profitability and sales accounting. Thus, it registers for what costs are incurred before these costs are settled in the earnings. It is used for the calculation and evaluation of the production costs of a product, and of the costs or revenues from the rendering of a service or in the execution of a project – in both plan and actual. This means that it provides the tools for a comprehensive analysis of the value-adding processes in a company. Profitability Analysis is used for both company planning and to display business success. Two main views are observed here: on the one hand, the “external view” in the market for analyzing market segments (Profitability Analysis), on the other hand, the “internal view” of individual parts of the company responsible for profit (Profit Center Accounting). Profitability Analysis focuses on the analysis of the profits from the company's activities on the external market. It provides you with the option of ascertaining how profitable the company is in different market segments (product category, customer, and so on) and how this data has developed over time. When you install Profit Center Accounting, assign a specific cost center to every object for which costs and revenues are incurred in your system. Profit Center Accounting analyzes the success of the subdivisions in your company responsible for profit. It can display the “internal market” within the company, especially with the use of the “parallel valuation approaches and transfer prices” function. When data is posted on an object that a profit center is assigned to, the data is automatically transferred statistically to Profit Center Accounting. In this way, the actual data of the assigned objects are updated in Profit Center Accounting.
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Figure 105: Areas in Management Accounting
Integration Through the different business-related processes such as Purchase to Pay, Plan to Product (process from the planning to the internal added value), and Order to Cash (sales), it is necessary to display external and internal quantity and value flows in a differentiated way. Between the different accounting components, the costs and services quantity flows that are necessary for efficient accounting are displayed. The mySAP ERP Financials application component Financial Accounting is a primary data source for Management Accounting. Most expense postings that relate to the General Ledger result in a costs posting in Management Accounting. These postings to expense accounts in the General Ledger can be journal entries, or they can be created by accounts payable postings or depreciation postings from Asset Accounting or from other mySAP ERP applications. Thus, expenses and revenues postings in Financial Accounting, for example, result in the costs and sales revenues in Management Accounting, whereby an appropriate corresponding account assignment object is provided. Directly attributable individual costs are posted on the cost unit in Product Cost Controlling, for which these costs are incurred (individual costs of manufacturing orders, customer orders, and so on). The internal order is an extremely flexible accounting tool that can be used in many different ways for the documentation of costs and, sometimes, also for revenues. Internal orders are used for the planning, supervision, and allocation of costs for internal tasks.
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Overhead costs, which are not directly attributable, are first posted to the respective area of responsibility, the cost center, from which they are then posted further using different procedures on a cause-effect basis to the cost units. Traditionally, overhead costs are allocated using different methods such as overhead rates and activity allocations from cost centers to cost units. As opposed to this, Process Cost Accounting assigns the costs to business processes, where it is not important which organizational unit has incurred these costs. A process is a cross-functional object that can draw resources from all cost centers of a controlling area. Likewise, a direct revenue posting can be made from Financial Accounting to profitability analysis or, for example, to a revenue-capable cost object (for example, a customer order or project). Furthermore, a backflow from Management Accounting into Financial Accounting can take place if production costs are activated as end products or work in process (WIP). With Profitability Analysis, you can analyze the profitability of segments of your external market. These segments can be defined according to products, customers, geographical areas, and other characteristics, depending on their internal organizational units, such as company codes or business areas. The aim of profitability analysis is to support management, sales, marketing, planning, and other groups within your organization by providing market-oriented aids for decision making. With Profit Center Analysis, you can analyze internal profits and losses for profit centers. This enables the evaluation of different areas or units in your company using independent balance sheets and P/L statements. Profit centers can be structured according to regions (subsidiaries, plants), functions (manufacturing, sales), or products (product groups, categories). Using Profit Center Accounting, you can assess the internal aspects of profitability. This internal view of profitability allows you to measure the success of a specific profit center based on the profitability objectives of the respective area of responsibility. Profit Center Accounting can report on certain balance sheet items such as assets, receivables/liabilities, materials inventory, and work in process. This enables the determination of certain financial key figures such as ROI (return on investment). Other SAP solutions such as mySAP ERP Human Capital Management and the logistic processes (Procurement, Sales Order Management, Production, or Project System) are integrated in Management Accounting. By assigning employees in mySAP ERP HCM to certain cost centers, you can directly assign the costs associated with payroll accounting and personnel cost planning to the cost center. Similarly, real-time expenses or costs postings in Financial and Management Accounting are created by certain goods movements in the logistic processes. For example, a goods issue for a production order leads to direct costs for the order and a goods consumption (profit and loss) against stock (balance sheet) is automatically posted in Financial Accounting at the same time. The following figure explains key accounting postings based on the above-mentioned business processes, such as purchase to pay, plan to product, and order to cash.
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Figure 106: Integration
Extended Analysis of Results Profitability Analysis allows you to analyze profits and contribution margins for your company's market segments. For this purpose, Profitability Analysis supports sales, product management, and corporate planning and decision making by using an external view based on a market-oriented perspective. Profitability Analysis therefore provides a very differentiated, internal analysis of a company's profits that is similar to the profit and loss sheet in accounting, but broken down according to market segment or revenue and cost item. Market segments are defined by characteristics such as products, product groups, customers, customer groups, geographical areas, and so on. For example, you can analyze the profitability of a certain product group that you sell to a certain customer (or a certain customer group). When you set up Profitability Analysis in your company, you have a very flexible choice when selecting the characteristics that are relevant for the definition of the market segments for your company. Every clear combination of characteristics (for example, sale of product A to customer Y) defines a profitability segment that corresponds to a market segment. A profitability segment is created dynamically as soon as it is addressed for the first time. In comparison to Financial Accounting, the results that are presented here can also be subdivided into fixed and variable costs, offering you a very flexible option of different contribution margin calculations.
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Profitability Analysis provides you with a multidimensional reporting tool, which you can use to create reports that analyze data for any market segment and profitability measure.
Figure 107: Profitability Analysis
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Exercise 17: Financials Exercise Objectives After completing this exercise, you will be able to: • Post a customer's check • Display a Profit and Loss Statement
Business Example As the month ends, you are tasked with posting company receivables and processing balance sheet statements showing actual profits.
Task 1: Accounts Receivable Accounting Your customer, Customer ##, purchased pumps from your company. You have received a check as payment for the sale of the pumps. Post the customer's check. 1.
Using the data provided in the table, display the customer's open receivables Field
Data
Customer account
Customer##
Company Code
1000
Normal Items
Selected
Value 2.
Using the data provided in the table, process the customers check. You grant the customer a 3% cash discount. Record the document created during the posting. Field
Data
Document Date
Currency/Rate
EUR
Bank Data: Account
113100
Bank Data: Amount
34,173.45
Open item selection: Account
Customer##
Document number Continued on next page
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Task 2: Balance Sheet and Profit and Loss Statement Display the Balance Sheet and Profit and Loss Statement in Financial Accounting. 1.
Using the data provided in the table, execute a standard report for the financial statement. Compare the actual posting period of the actual year with the same posting period of the previous year. Field Name
Values
General selection criteria Currency Type
10
Company Code
1000
Report selections Ledger
0L Leading Ledger
FIS Annual Rep.Struc
INT
Reporting year
Rep. period from
Report period until
Currency/Rate
EUR Continued on next page
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Field
Data
Bank Data: Account
113100
Bank Data: Amount
34,173.45
Open item selection: Account
Customer##
Document number a)
From the SAP Easy Access menu, choose Accounting → Financial Accounting → Accounts Receivable → Document entry.
b)
Choose
c)
Document Date: .
f)
Currency/Rate: EUR.
g)
Bank Data: Account: 113100.
h)
Bank Data: Amount: 34,173.45.
i)
Open item selection: Account: Customer##.
j)
Choose Process open items.
Incoming Payments.
Hint: The document you want to pay for is displayed. Note that the not assigned value on the lower right of the screen is zero. This means that the payment you are entering corresponds to the document you want to clear. You can now save the document. You can only save a document if the assigned value is zero. You can activate and deactivate items in this list by choosing Activate and Deactivate. k)
Choose
l)
In the space provided in the table, record the document number.
m)
Choose Exit to exit the screen and return to the SAP Easy Access menu.
Post.
Task 2: Balance Sheet and Profit and Loss Statement Display the Balance Sheet and Profit and Loss Statement in Financial Accounting. 1.
Using the data provided in the table, execute a standard report for the financial statement. Compare the actual posting period of the actual year with the same posting period of the previous year. Continued on next page
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Field Name
Values
General selection criteria Currency Type
10
Company Code
1000
Report selections Ledger
0L Leading Ledger
FIS Annual Rep.Struc
INT
Reporting year
Rep. period from
Report period until
