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SAPSystemBasicsIntroductionBasicsandObjectives

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Lesson01:SAPSystemBasics
Hello and welcome to the SAP Basics module offered by Simplilearn. I am Jack who will be your tutor
throughout this module. This SAP course unit is about SAP Basic skills. In this unit, we will learn about SAP System
Basics which will cover the history, and the evolution of SAP. This unit is divided into five lessons. Lesson 1 deals
with SAP System Basics, Lesson 2 covers the SAP Navigation, Lesson 3 is about Run and Print Reports, Lesson 4 is
about using the SAP Business Workplace, and finally, Lesson 5 deals with Master Data and Transactions.
Let us now understand the objectives of this unit.

Objectives
In this unit, we will be able to: learn the basics of the SAP system; learn to navigate, search, and get help; run
and print reports; use the SAP business workplace; and work with master data and transactions.
Let us now begin with the first lesson, i.e., SAP system basics.

SAPSystemBasics
Welcome to the lesson on SAP system basics. This is the first lesson of the unit wherein we will learn the basic
concepts of SAP system, ERP, and its uses.
Before we begin, let us understand the objectives of this lesson.

Objectives
In this lesson, we will: understand the history of SAP; describe ERP and its uses; classify SAP modules; explain SAP
system landscape; differentiate between customization and configuration; and list the benefits of SAP.
Let us now begin with a brief introduction about SAP.

IntroductiontoSAP
SAP refers to Systems, Applications, and Products in data processing, and was established in 1972 in Walldorf,

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Germany. Through the years, it has grown and emerged as the worlds leading provider of client/server business
solutions, for which, it is so popular today. The SAP solution comprises of a complex combination of different
modules or applications, each being a significant part of the basic business process.
SAP is the market leader in providing softwarerelated services to enterprises according to their business
requirements, and also in terms of profits. Based on market capitalization, SAP is the worlds third largest
independent software manufacturer.
We will look into some SAP company facts, in the next slide.

CompanyFacts
Following are some of the companys facts and figures: SAP has more than 197,000 customers in more than 120
countries; it has more than 55,765 employees and is located in more than 130 countries; it has a 40year legacy
of innovation and growth as a true industry leader; it has an annual revenue (IFRS) of 16.22 billion Euro [To be
pronounced as sixteen point two two billion euro], and is listed under the symbol "SAP" on stock exchanges,
including the Frankfurt Exchange, and NYSE.
Let us begin with understanding the concept of SAP.

WhatisSAP
SAP develops enterprise resource planning (ERP), software products that can be used by the companies to manage
their enterprise. The most significant feature of SAP, which makes it stand out compared to other ERP vendors, is
the way SAP integrates complex activities such as operations, logistics, manufacturing, finances, HR, and creates
a seamless system. These applications update and process transactions in real time, thus, are easy to use, and at
the same time, sophisticated enough to handle the required operations for any kind of enterprise.
SAP solutions and services facilitate more than 197,000 customers to generate profitable revenue, constantly
adapt to the ever changing technology and market, and at the same time maintain growth.
Next, let us learn about ERP.

WhatisERP
ERP refers to Enterprise Resource Planning. It is a business management software system that serves all
departments within an enterprise. An ERP management information system integrates areas such as:
manufacturing, distribution, marketing, sales, purchasing, inventory, finance, and human resources.
Let
15 us now learn more about ERP planning and execution.
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ERPPlanningandExecution
The
0 diagram shows the process of planning and execution using SAP.
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The SAP system is a fullyintegrated system where activities in one area generate activities in another area.

3 ERP management information system integrates areas such as manufacturing, distribution, marketing,
An
finance, sales, purchasing, inventory, and human resources.
We will now find out the uses of ERP.

Share

UsesofERP
ERP
2 has various implications across several business areas such as: ERP can be used for over all control of an
organization; it is used to have a better financial control; it helps to have a better inventory control; it provides a
better way of operating an organization and its systems; it provides a better reporting system; it helps in man
power assessment; it also helps in the optimum utilization of resources such as people, machines, and materials;
it ensures accountability throughout the organization, and it provides an improved quality of life.
Let us now have a look at the various ERP vendors.

ERPVendors
The various vendors of ERP include Oracle, Baan, SAP, PeopleSoft, Siebel, and JD Edwards.
We will move on to the different SAP online training modules.

SAPModules
SAP can be divided into 4 modules which are: Functional, Technical, Industry Specific, and New Dimensional.
Lets look into these one by one.
Functional Modules: SAP's solution includes a number of functional modules, which support transactions to
execute key business processes. The functional modules include: Financial Accounting (FI); Controlling (CO);
Materials Management (MM); Sales and Distribution (SD); Logistics Execution (LE); Production Planning (PP);
Quality Management (QM); Plant Maintenance (PM); Project System (PS); and Human Resources (HR).

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Technical Modules: SAP consists of the following technical modules:
SAP Advanced Business Application REQUESTACALLBACK

LIVECHAT

Programming or ABAP [To be pronounced as A B A P], and SAP Business Application Software Information System
REQUESTACALLBACK
or BASIS [To be pronounced as Basis]. This will be dealt with in detail in the following slide.
Industry Specific: SAP also consists of an industry specific retail system, which provides a retail pricing sheet
Name*
that can be used to determine the retail price for articles.

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New Dimensional: Apart from basic ERP solutions, SAP R/3 [To be pronounced as R 3] has introduced many new
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dimensional advanced products for an enterprise, which continuously thrives to upgrade its enterprisewide
processes.
Let us understand more about the technical modules in the next slide.

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SAP Technical Modules: SAP R/3 uses a 3tiered model and is a client/server based application. In this model, a

presentation layer, or client, interfaces with the user. The application layer includes all the businessspecificREQUESTACALLBACK
logic and the database layer records, and stores all the information about the system, including transactional and
configuration data.
SAP technical modules can be divided as follows:
SAP ABAP: SAP R/3 functionality is designed using its own exclusive language called Advanced Business
Application Programming (ABAP). ABAP or ABAP/4 [To be pronounced as A B A P four] is a fourth generation
language (4GL), focused towards the creation of simple, yet powerful programs. R/3 also comes with a complete
development environment which provides developers an opportunity to modify the existing SAP code, and
functionality. It also allows them to develop their own functions, such as, reports or complete transactional
systems within the SAP framework.
SAP BASIS: SAP BASIS is a set of middleware programs and tools that forms the fundamental base for applications
to be operated across many operating systems. It includes a Relational Database Management System or RDBMS
[To be pronounced as R D B M S] RDBMS stores the data into a pool of tables, which might be related by common
fields. RDBMS also offers relational operators to manipulate the data stored into the database tables. The
relations among tables are also stored in the form of the table, Graphical User Interface or GUI, and client server
architecturearchitecture of a computer network, in which many clients or remote computers request and receive
service, from a centralized server or host computer. Apart from the interface part of Basis, it also includes
components such as a data dictionary, user, and system administration. Basis is a business application integrated
software solution which is used for the administration of the SAP system. It is a piece of middleware which links
the application with the database, and the operating system. Basis usually links the GUI to the SAP, and the Basis
administrator is an SAP professional who controls the SAP environment, including the GUI screens, and SAP
application servers.
We will look into the industry specific modules in the following slide.

IndustrySpecificModules
The SAP retail system consists of a retail pricing sheet, which can be used to determine the retail price for
articles. The retail pricing sheet estimates a retail price, which can either be accepted, or can be modified.
There are a number of different methods in the SAP system to calculate the proposed retail price. The proposed
retail price is always based on the purchase net or net price. This purchase net or net price is made from the
purchasing pricing elements, or condition types defined to be included in the purchase net or net price. A planned
markup is applied to the purchase net or net price to calculate the proposed retail price.
For example: ISRetail, ISOil and Gas, ISUtilities, ISBanking
Let us now learn more about the new dimensional modules in the next slide.

NewDimensionalModules
Apart from the basic ERP solutions, SAP R/3 has developed many advanced products for an organization which
continuously thrive to upgrade their enterprisewide processes. After the core modules have been implemented,
and when the confidence and knowledge in SAP has seen a substantial jump, organizations start searching for
tools that can help them to not only run their daytoday transactions efficiently, but also proactively.
It is specifically for this reason, that the role of decision support tools gets justified, and reviewed in the form of
new dimensional modules of SAP.
For example: BI/BW (Business Intelligence)/(Business Warehouse), SCM (Supply Chain Management), CRM
(Customer Relationship Management), HCM (Human Capital Management), EHS (Environment Health and Safety),
PLM (Product Lifecycle Management), APO (Advanced Planning Optimization), PS (Project System), PI (Process
Integration), BO(Business Objects), SEM (Strategic Enterprise Management), SRM (Supplier Relationship
Management), FSCM (Financial Supply Chain Management), GRC (Global Trade Services), BPC (Business Planning
and Consolidation).

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Next, we will move on to the SAP system landscape.

SAPSystemLandscape
The diagram in this slide shows the SAP system landscape for an organization. An enterprise (organization) can
have servers to install SAP. These servers can be divided into many clients.
The system landscape consists of all the SAP systems that have been installed. It can consist of several system
groups in which the SAP systems are linked by transport routes.
When it is decided which clients are required and which roles are needed, how to allocate them amongst the
different SAP systems needs to be decided. Multiple clients can be created independent of one another in a single
SAP system. However, when the data is configured, it must be ensured that the crossclient customizing settings
and repository objects are the same for all clients in a single SAP system. Changes made in one client apply
immediately to all clients in the system.
Let us learn about SAP servers.

SAPServers
SAP system can be divided into three servers, Development and Customizing, Quality Assurance, and
Production.
Development and Customizing: In this server configuration can be done based on customers requirements.
Quality Assurance: In this server, after the completion of configuration, the testing and verification of
functionality can be done.
Production: In this server, live business data for client activities can be found.
A threesystem landscape in which each of the central clients has its own SAP system is recommended.
This comprises of a development system or DEV, a quality assurance system or QAS, and a production system or
PRD. The development system encloses the customizing client or CUST, the quality assurance system encloses the
quality assurance client or QTST, and the production system encloses the production client or PROD.
All the modifications are made to the customizing data and the repository objects in the customizing client. When
the corresponding change requests are issued, they are transported into the quality assurance client. This means
that the modifications to crossclient data only display in the quality assurance client after the transfer. In the
quality assurance client it can be tested whether the transferred data are complete, or whether any associated
modifications are lost, and are still as unreleased change requests. If the test is successful, the change requests
are transferred into the production client. The production client is completely distinct from the other clients with
respect to the crossclient data.
There are many versions of SAP, let us find out about them.

SAPVersions
The chart shows the evolution of SAP across time. The different versions of SAP and their release dates are: SAP
R/3 Release 1.0A Release Date 6 July 1992; SAP R/3 Release 2.0/2.1 (pronounce as two point zero two point
one) Released 1993; SAP R/3 Release 3.0/3.1 Released 1995; SAP R/3 Release 4.0B Release Date June 1998; SAP
R/3 Release 4.5B Release Date March 1999; SAP R/3 Release 4.6A Release Date 1999; SAP R/3 Release 4.6B
Release Date Dec 1999; SAP R/3 Release 4.6C Release Date April 2001; SAP R/3 Enterprise Release 4.70 Release
Date MarchDec 2003; SAP R/3 Enterprise Edition 4.7; SAP R/3 Enterprise Central Component 5.0; SAP R/3
Enterprise Central Component 6.0; and SAP ERP 6.0 Enhancement Packages (1,2,3,4,5,6).
Next, we will look into the difference between customization and configuration.

DifferencebetweenCustomizationandConfiguration
The difference between customization and configuration is:
Customization: In customization, the system can be customized, or modified to the business requirements, which
is the process of integrating SAP to the business process.
Configuration: In configuration, the system can be configured to meet the requirements of the business by using
the existing data.
Lets now learn about SAP ECC.

WhatisSAPECC
ECC stands for ERP Central Component. SAP is the ERP (Enterprise Resource Planning) software, and ECC is the
version of SAP, like 4.6, 4.6c, and 4.7. The latest version is ECC 6. It is known as enterprise core component.
Moving on, next, we will understand the benefits of SAP.

BenefitsofSAP
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SAP has revolutionized the way an organization is managed. It has tremendous benefits for the organizations,
some of which are listed here: SAP provides realtime processing with an integrated suite of client and server
applications. It provides fullyintegrated business process including maximum flexibility and scalability; it is
multilingual, multicurrency, and includes best business practices; it ensures cost control and increases profit;
provides increased productivity of all resources including people, material, and money; provides transparency in
operations, resulting in better communication; provides better managerial control; provides efficiency and
unification within a business organization; provides realtime information about the business processes within a
company; and provides easy tracking of the business process updates, as well as any changes accomplished.
With this we have come to the end of this lesson. We will summarize what we have learnt so far in the next slide.

Summary
Here is a quick recap of what was covered in the lesson 1 of SAP course:
We learned about the history of SAP, ERP and its benefits, the different modules in SAP, SAP system landscape,
the difference between customization and configuration, and the benefits of SAP.
Before we move on to the next lesson, please go through the quiz to check your knowledge.

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