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ERP I SAP Recap
ERP I SAP Recap
e
Resource
Planning
What is ERP?
in the company
To be Competitive
Expected benefits of ERP
• Streamlining business processes
MRP II
MRP
+ MANUFACTURING / QLY
+ PLANNING
+ FINANCE
MRP
ERP : Enterprise Resource Planning
MATERIAL / MRP II : Manufacturing Resource
INVENTORY
PURCHASE & STORES
Planning
MRP : Material Requirement
Planning
1970 1980 1990 2000
ERP Vendors
•Local ERP
–RAMCO Marshal
–MASTEK Mamis
•International
–SAP ORACLE
–JDE Peoplesoft
–Baan Mfg*Pro
–BPCS Avalon
About
SAP
System Applications & Products in Data Processing is the world's leading
provider of business software solution, providing unique support to its customers
and partners for streamlining operations and achieving significant efficiencies
throughout their supply chains.
FI
SD Financial
Sales & Accounting
Distrib.
MM CO
Materials Controlling
Manage-
PP ment AM
R/3
Production Asset
Planning Management
QM Client / Server PS
Quality Project
Manage- ABAP/4 System
ment PM WF
Plant Workflow
Mainten-
ance HR IS
Human Industry
Resources Solutions
Technical Architecture
SAP’s Client/Server Structure
Central DB (Stores all Data and
Application Programs)
Database Changes
Application Logic
Output Data to Input Data Output Data to
User from User User
User Interaction
Illustration: SAP R/3 Basis softwareis the
“middleware” of the R/3 System
Windows NT
UNIX
Oracle
Informix
Request for
computing
resources
SAP Component
SAP Component
B
Software components
SAP Component
A B C
C
MATERIALS MANAGEMENT
Sales Support
Sales
activity
Sales
SALES INFORMATION SYSTEM
Inquiry
Quotation Contract
Shipping
Delivery
A NA M SL AI RET A M
Billing
Debit memo Invoice Credit memo
FINANCIAL ACCOUNTING
Materials Management
8. Payment 1.Requirements
determination
2. Source
determination
7. Invoice
3. Vendor selection
verificat
ion
4. Order Processing
6. Goods receipt &
inventory management
5. Order follow-up
House of Finance
EIS
Information Warehouse
Group EC
accounting
T
FI CO
R
- Organizational Structure -
SAP Enterprise System
Organizational Structure
• A hierarchy in which the organizational units
in an enterprise are arranged according to
tasks and functions.
• Are static data and are rarely changed
– Once you have decided on an organizational structure it is
not easy to change it
• The definition of organization units is a
fundamental step, it is a critical factor in how
the company will be structured
Organizational Units and Basic Settings
Organizational Units in
R/3 - FI
Client 000
Client 001
Client 400
...
Company
• Consolidated financial statements are
created at the company level
• A company can include one or more
company codes
• All company codes must use the same
chart of accounts and fiscal year
• Company is not required in the definition of
an enterprise (optional)
Financial Accounting (FI)
Chart of Accounts
• A listing of the accounts (assets,
liabilities, equity, revenues, and
expenses) that are contained in
the General Ledger
• A chart of accounts must be
assigned to every company code
in order to create the General
Ledger for that company
• Several company codes can use
the same chart of accounts
Chart of Accounts
Chart of Accounts
Company Code
• A legally independent entity
• The smallest organizational unit for which
accounting can be carried out
• Business transactions are processed at this level
• Accounts are managed at this level
• Legal financial statements, such as the balance
sheet and the income statement, are generated at
this level using the General Ledger balances
Financial Accounting (FI)
Client
Credit Control
Area
Company
Code
Account Groups for the G/L Accounts
Cash accounts
General Ledger Company code segment
Cash Cash
unt
000000- 099999 Acco
C 000000-099999 oup
gr
100000- 199999
Asst
200000- 299999
Matl
300000- 399999
Account group l The number ranges of the
control accounts
P/L
400000- 499999
30
G/L account master Data –Structure
31
Sales and Distribution (SD) Financial Accounting (FI)
Reconciliation Account
Customer 189 Customer 142
Accounts Receivable
100 300 Reconciliation
950
400 150
32
Materials Management (MM) Financial Accounting (FI)
Reconciliation Account
Vendor 100234 Vendor 100435
Accounts Payable
200 250 Reconciliation
950
100 300
33
34
35
36
37
38
39
40
41
Unit 4
- Organizational Structures -
42
Materials Management (MM)
Components of Materials
Management
Foreign
Valuation Trade/
Customs
Logistics
Service
Invoice
Master
Verification
Materials
Product
Management Purchasing MRP
Catalog
(MM)
Service
Material
Entry
Master
Sheet
Inventory Physical
Mgmt. Inventory
43
Integra
Materials Management (MM)
tion
Organizational Structures
• Plant
• Valuation Area
• Storage Locations
• Purchasing Organizations
• Purchasing Groups
44
Integra
Materials Management (MM)
tion
Plant
• Lowest valuation area
• Organizational level where Material
Requirements (MRP) runs
• Generally used to describe a
production site, a distribution center
or centralized warehouse
• May be a physical or logical unit
45
Integra
Materials Management (MM)
tion
Valuation Area
• The valuation area determines at
which level a material is valuated
(inventory value is established)
• SAP R/3 allows valuation at the
company code or plant level, but
recommends valuation area be set at
the plant level
46
Materials Management (MM)
Storage Location
• Subdivision of a plant
• Where materials are managed
(inventory management)
– Raw Materials
– Maintenance, Repair, and Other
– Finished Product
• May be a physical or logical unit
47
Corporate Structure
48
Integra
Materials Management (MM)
tion
Purchasing Organization
• Organizational unit responsible for the
procurement of materials and services.
• SAP requires that purchasing
organizations be assigned at the plant
level
• A purchasing organization can be
assigned to more than one plant
• A purchasing organization can be
assigned to a company code
49
Organization of Purchasing
Centralized/Distributed Purchasing
50
Materials Management (MM)
Organizational Relationships
• Purchasing
Organization/Purchasing Group
Purchasing
Organization P001
51
52
53
54
55
56
57
58
59
60
Integra
Materials Management (MM)
tion
Fiscal Period
• In order to execute any material
postings, the current fiscal period
has to be activated
• By initializing the company code for
material management, the first
major integration between Financial
Accounting (FI) and Logistics is
completed
61
62
63
Material Types
64
65
66
67
68
69
70
71
Materials Management (MM)
Material Master
Material Types
• Standard material types are used
in all industries.
– ROH: Raw Materials
• Purchased externally only
• No sales view
– HAWA: Trading Goods
• Always purchased externally
• Sold without any change to the material
• No manufacturing views exist
72
Materials Management (MM)
Material Master
Material Types (continued)
– FERT: Finished Products
• Are produced internally
• Normally no purchasing views exist
73
74
75
76
Materials Management (MM)
Purchasing Tolerances
77
Goods Receipts Tolerances
78
79
Invoice Receipts Tolerances
80
81
Automatic Account Assignment
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
All the Best for your
Interview