SAP Enterprise Release 4.

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Contents

1.0 Introduction...............................................................................................................2
2.0 Architectural model of SAP R/3 Enterprise 4.7..........................................................2
Web Application Server (WAS): .................................................................................3
Enterprise Core:...........................................................................................................4
Enterprise Extensions: .................................................................................................4
3.0 Features and Benefits of SAP R/3 Enterprise Core (SAP Enterprise 4.7)....................5
Commonalities: ...........................................................................................................5
Differences:.................................................................................................................6
4.0 Technical Specification of SAP Enterprise Core ........................................................6
5.0 New Functionality in SAP R/3 Enterprise 4.7 ............................................................7
Human Resource .........................................................................................................7
Supply Chain Management..........................................................................................7
Financial Management.................................................................................................8
6.0 Upgrading SAP Enterprise R/3 4.7 ............................................................................8
7.0 Conclusion ................................................................................................................9

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 SAP R/3 Enterprise Core
(Release 4.7)

1.0 Introduction
SAP R/3 Enterprise Core – popularly known as Enterprise Release 4.7 - is the latest
version of the SAP R/3 suite of enterprise software applications. It is designed to offer
the best possible foundation for easily carrying the company through to e-business with
mySAP Business Suite.

The first release of SAP R/3 Enterprise Core (4.7) contains some functional
enhancements, but it is primarily a technical change. SAP R/3 Enterprise is built on SAP
Web Application Server (SAP Web AS) and integrates seamlessly with the enterprise
portals and exchange infrastructure.

SAP Enterprise Core is the heart of SAP R/3 4.7 and supports the packaging concepts,
business configuration sets and Unicode-compliance. In addition, enterprise core
provides users with the SAP R/3 Enterprise HR and non-HR Core Support Packages.

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As it’s name suggests, Enterprise Core will contain the inward,
enterprise processes that make the enterprise work. The
outward, collaborative processes will not be included in
Enterprise Core. They will be included in what is called
Enterprise Extensions.

Release 4.7 is a major change of direction for SAP and therefore for it’s customers. This
new release needs to be closely studied by each of it’s customers and then acted on.

2.0 Architectural model of SAP R/3 Enterprise 4.7

The SAP R/3 4.7 version is the functional and technical advancement over classical
Enterprise Resource Planning solution that provides customers flexibility, stability, new
functions and new technology. It achieves these functions by facilitating connection to
marketplaces, portals and other collaborative applications as well as enabling an easy
evolution to mySAP.com. This new model of SAP R/3 is also more flexible to future
upgrades.

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The basic model of SAP R/3 Enterprise Release 4.7 consists of three parts:

 Web Application Server

 Enterprise Core
 Enterprise Extensions

Figure: Architectural Model of SAP R/3 4.7 (Enterprise Core)

Web Application Server (WAS):

The WAS 6.2C of SAP Enterprise integrates all the features of already existing SAP
Basis and Web application server. In addition, it provides users with additional
enhancements in the form of package concept, global parameterization with business
configuration sets, Unicode compliance, and accessibility.

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 Read This Nugget
Thespot4sap.com offers a premium paper covering SAP Web
Application Server. You can take a look at the table of contents
at http://www.thespot4sap.com/shop/SAP_WAS_302_TOC.htm

Enterprise Core:

Enterprise Core (SAP Release 4.7) includes all R/3 4.6 functionality with limited
functional enhancements and developments. On a go-forward basis, all legal changes
and support packs, including stabilization and performance enhancements, will be
applied at the Enterprise Core level. According to SAP, this Enterprise Core will remain
stable until at least 2007. Therefore, no planned upgrades are necessary, just support
packages.

Enterprise Extensions:

Extensions use a technology called ‘package builder.’ The concept is similar to user
exits. Extensions may be activated selectively and independently of each other or
remain inactive. A new set of extensions will be released annually as the Enterprise
Core remains stable. For example, Extension Set 1.10, available with R/3 Enterprise, will
consist of extensions in FIN (FI/CO), HR, PLM, TRVL, and SCM (WM, PP, MM). If you
take advantage of any Extension, the Extension would need to be activated in a similar
manner and with the level of effort required to customize new functionality. This
Extension philosophy decouples all development from the R/3 technical platform,
allowing the SAP community more flexibility in taking advantage of enhanced
functionality The Enterprise Extensions are the center of functional developments. These
functionalities are selectively deployable and each functionality has its own release
cycle.

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SAP R/3 Enterprise Core will remain stable until 2007. This
means that the functionality will not change unless absolutely
necessary — and then this will be done via support packs.
All functionality upgrades from now on will be done via the
Enterprise Extensions which will have their own release
schedules (probably yearly).

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3.0 Features and Benefits of SAP R/3 Enterprise Core
(SAP Enterprise 4.7)

Thus, the main difference between 4.6C and 4.7 is that 4.7 comes with new
technologies, optional deployment of new features and more flexibility is
available for future upgrades. The basic architecture for SAP R/3 4.7 is given in
the figure below.

Figure: New Architecture Model of SAP R/3 Enterprise versus SAP 4.6C

Commonalities:

 SAP 4.7 has all the features such as development workbench, transport
management system, monitoring, versioning and business object repository of
already existing SAP 4.6C.
 Web Application Server6.20 of 4.7 includes all the features of SAP Basis of SAP
4.6C.

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Differences:

 SAP 4.7 has a more structured approach as compared to SAP 4.6C from a
technical perspective. It is based on mySAP.com technology, which is actually
the Web Application Server 6.2C. This not only includes SAP Basis Technologies
with their latest advancements but also the new features of SAP Web AS 6.20.
 SAP 4.7 is more structured even from a functional perspective as this version
has been developed after functional and infrastructure developments of earlier
SAP R/3 4.6C.
 In SAP 4.7 the functional and infrastructure developments are made on separate
levels. The functional developments are made in the Enterprise Extensions and
infrastructure developments are made in the Enterprise Core unlike SAP 4.6C in
which both the developments take place within the systems.
 SAP in its Web AS has additional enhancements in the form of package concept,
global parameterization with business configuration sets, Unicode compliance
and accessibility that are not present in 4.6C.
 SAP 4.7 Core supports the above-mentioned enhancements that SAP 4.6C does
not.
 SAP 4.7 unlike 4.6C has Enterprise Extensions that can be separately deployed
and have their own releases.

4.0 Technical Specification of SAP Enterprise Core

The functionality of SAP R/3 Enterprise Core is based on the previous SAP R/3 release
SAP R/3 4.6C. Its functionality has been enhanced in SAP 4.7 by optimizing and
stabilizing of existing processes as well as legal changes and limited functional
developments. Also, SAP R/3 Enterprise Core supports the packaging concept,
business configuration sets, and Unicode-compliance. Moreover, it comes with five
encapsulated extensions. These Extensions along with the enterprise core are
maintained through scheduled support package tracks:

 SAP R/3 Enterprise Core: Non-HR Core Support Package

 SAP R/3 Enterprise Core: HR Core Support Package

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The five encapsulated extensions that are delivered along with
SAP R/3 Enterprise Core are: FIN (FI/CO), HR, PLM, TRVL, and
SCM (WM, PP, MM). Again, no functionality upgrades are
planned for Enterprise Core. Rather, all functionality will be
applied to these Enterprise Extensions – and they will each have
their own release schedules.

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In addition, SAP Enterprise Core features Accrual Accounting Engines. These enable
Accrual Accountings, allowing users to automatically calculate and post accruals, such
as license fees, rent costs, or revenues, in the general ledger accounting functionality of
SAP R/3 Enterprise Core. Also, the users can calculate and post the accruals according
to as many accounting principles as desired.

Other features of SAP Enterprise core are:

 Native Internet
 Support (SOAP/XML)
 Open Integration
 Web Services
 Java and J2EE
 Web Flow
 Security Enhancements
 New Upgrade Tools

5.0 New Functionality in SAP R/3 Enterprise 4.7

SAP Enterprise Core provides users with new functionalities in the following areas by
incorporating SAP Enterprise Extensions in its architecture.

Human Resource

SAP 4.7 facilitates the companies in management of global employees along with their
payroll management by providing a function to support all processes involved in
transferring an employee abroad. The cases where the employees cannot always obtain
access to a personal computer it gives an additional feature of mobile time management.
In this the employees working in the field can use the wireless application protocol
(WAP)-enabled mobile phones to record their working times directly and to check their
time accounts regardless of time or location. In addition, SAP 4.7 makes available the
users with newly introduced or updated functions of benefits and compensation,
concurrent employment, payroll, time management and enabling for application service
provision.

Supply Chain Management

The 4.7 version provides users with manufacturing execution that is based on the
process management functionality of the previous SAP R/3 releases. It delivers
additional production execution features and serves as a basic manufacturing platform.
This version also comes with the function for managing cross- system flow of goods. It
attains this function by facilitating the management of good movements relating to sales
and purchase orders within a business system group. Moreover it comes with the

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functions for advanced warehouse interface, business application add-ins, document
change management for purchase orders, interfaces and extractors, task and resource
management.

Financial Management

It comes with new post processing of electronic bank account statements functions that
enable customers to select and correct bank statement items faster in case the function
did not post automatically. This enables the users to trigger automatic postings for
several items at the same time. It also has an accrual accounting engine that enables
users to automatically calculate and post accruals such as license fee, rent costs, or
revenues in the general ledger accounting facility of SAP R/3 Enterprise core. Besides
this, the functions have been added or changes have been made in the functions for
process improvements, valuation and legal improvements, and technical improvements.

6.0 Upgrading SAP Enterprise R/3 4.7

4.7 does include some enhanced functionality. These enhancements may include vast
areas such as the recruitment front end, compensation, time management, financial
management and organization management. The first decision is whether to utilise this
functionality or not. If the decision is to not utilise it, then the upgrade is mostly technical
in nature.

In addition to the new functionality, there are other reasons for electing to upgrade to
Release 4.7:

 Optimization of SAP 4.6C to transform it into SAP Enterprise core: It involves the
advancement in SAP 4.6C to make it more stable, improve its performance and
enhance its Unicode compatibility. This optimized SAP 4.6C functions as the
enterprise core of SAP 4.7.
 New additions in the form of SAP Enterprise Extensions: The functional
enhancements that are to be made in SAP 4.6C are made in Enterprise
extensions. These enterprise extensions are independent of the Enterprise Core
as they are grouped on the basis of the area that it deals with such as Financials,
SCM, HR, Travel Management and PLM. This feature of Extensions being
independent of enterprise core makes it possible for the users to independently
upgrade the functionalities of SAP4.6C. These extensions are linked to the
enterprise core functionality by the means of BADIs (Business Add-Ins) or BTEs
(Business Transaction Events), so that the SAP R/3 enterprise objects are not
modified directly.
 Integrating with SAP Web Application Server (WAS): SAP WAS is the advanced
form of SAP Basis technology that has been achieved by adding a few system
administration processes, especially with regard to Web enabling. Hence, in it all

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 the administration system activities are carried on as before without need for
many changes.

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SAP have stated that they will only support 4.6C until March
2006.

The upgrade of SAP 4.6C devises a new upgrade procedure known as System Switch
Upgrade, which is the standard procedure for all software components that run on SAP
WAS 6.10 and higher. This upgrade procedure gives its customers the option of
selecting between two different upgrade strategies, depending on whether they want to
keep their downtime or system resources to a minimum. The feature of the system that
makes this procedure so popular is the non-active shadow system (the additional
instance of the system) that already runs with the target release software version. This
allows the upgrading of the objects without shutting down by processing the objects in
the non-active shadow system while the production system is still running. The
generated shadow repository is activated later on and replaces the old repository.

The time that is required for upgrading to SAP 4.7 is much less i.e. 30% to 50% faster as
compared to what was required in upgrading previous versions. Also, the version is
more user-friendly and stable. The feature of SAP Enterprise being available for 64-bit
operating system might require the upgrade their operating system platforms. The
performance and resource requirements for SAP enterprise are plus or minus 10% less
that of SAP 4.6C.

7.0 Conclusion
SAP 4.7 has been developed keeping in mind specific needs of the customers. This
version of SAP can be easily downloaded and will be easy to upgrade to the future
versions. SAP R/3 4.7 allows users to maintain stability and reduce costs for upgrade as
they can upgrade functions depending on their personal requirement unlike earlier
versions that needed end-to-end upgrade from the already existing ones. Moreover this
version enables total e-business solutions for each company with fully integrated
technology and best in-class solutions.

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