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ECC 6.

January 2008

Business Process
Integration I

Presented by
The Rushmore Group, LLC

Course Materials
Business Process Integration Slides
Business Process Integration Exercises

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

An Introduction to the
Basics of SAPs R/3
Client / Server
Integrated Business
Solution

SAP AG and The Rushmore Group, LLC 2008

ECC 6.0

January 2008

SAP
Systems, Applications, and Products in Data
Processing (SAP)
Name of the company
SAP AG
SAP America

Name of the software


SAP R/2 Mainframe version
SAP R/3 Client/Server version

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

SAP AG
Founded in Germany (1972)
Worlds third largest software provider
Worlds largest provider of Integrated Business
Solutions software
Company stock trades on the Frankfurt and New
York exchanges

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

SAP R/3

World-wide usage
Designed to satisfy the information needs for
business sizes (small local to large all
international))
Multi-lingual
Multi-currency

Designed to satisfy the information needs for all


industries (industry solutions)

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

SAP AG and The Rushmore Group, LLC 2008

ECC 6.0

January 2008

SAP R/3

Enables a company to link its business processes


Ties together disparate business functions
(integrated business solution)
Helps the organization run smoothly
Real-time environment
Scalable and flexible

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

Integrated Business Solutions


Software Vendors

SAP
Oracle (Peoplesoft and J.D. Edwards)
Microsoft Great Plains, Axapta, Solomon
IBM
BAAN

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

Architecture

Central relational database (e.g., Oracle,


Informix, Microsoft SQL and many others)
Client/Server three-tiered
ERP Component Oriented towards common
identifiable business modules
(FI, MM, SD, CO, PP, HR)

Add-ons:
Customer Relationship Mgmt (CRM)
Supply Chain Mgmt (SCM)
Product Lifecycle Mgmt (PLM)
January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

SAP AG and The Rushmore Group, LLC 2008

ECC 6.0

January 2008

Relational Database

Tables: Defines and links thousands of tables of


information (25,000+)
Advantages

Consistent and accurate data


Common definitions for terms
Shared, but restricted usage (e.g., profiles)
Eliminates data redundancy

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

10

Client/Server Environment

Client
Software/hardware combination that can make a
request for services from a central repository of
resources

Server
S
Software/hardware combination that can provide
services to a group of clients in a controlled
environment

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

11

Three-Tier SAP Structure


GUI Graphical User Interface or Web
Interface
Application server (one or many)
Database server (one single location)

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

SAP AG and The Rushmore Group, LLC 2008

12

ECC 6.0

January 2008

SAP Enterprise System

PCs, Laptops, etc.

Browser Client

Network
Web Server
Internet
Transaction
Server

Presentation

Application
Servers

Application
Database

Database

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

13

mySAP Business Suite

mySAP PLM

mySAP
ERP

mySAP
SRM

mySAP
CRM

mySAP SCM

SAP NetWeaver
January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

14

mySAP ERP Modules


SD

FI

Sales and
Distribution

Financial
Accounting

MM

CO

Materials
Mgmt.
Production
SM Planning
Service
Mgmt.

Controlling

R/3

PP

AM

Fixed Assets
Mgmt. EC

Enterprise
p
Client / Server
Controlling
QM
Integrated Business
PS
Quality
Project
Mgmt.
Solution
PM
WF System
Plant Maintenance

January 2008

Workflow

HR

IS

Human
Resources

Industry
Solutions

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

SAP AG and The Rushmore Group, LLC 2008

15

ECC 6.0

January 2008

Business Modules
Collections of logically related transactions
within identifiable business functions

MM (Buy)
PP (Make)
SD (Sell)
( Sell )
FI and CO (Track)
HR

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

16

SAP R/3 Basics


Instance each install of the SAP R/3 software
on an individual application server
Configurable each instance can be
distinctively configured to fit the needs and
desires of the customer (within limits)
Most of the infrastructure decisions, including
configuration decisions, occur during project
implementation
January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

17

Configuration
The process of tailoring SAP software by
selecting specific functionality from a list of those
supported by the software, very much like
setting defaults (e.g., Word, Access)
DOES NOT involve changes to the underlying
software code

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

SAP AG and The Rushmore Group, LLC 2008

18

ECC 6.0

January 2008

Programming Code Modifications


Changes to the delivered code
ABAP/4 Advanced Business Application
Programming (ABAP)
This should be done sparingly and carefully as it
can make migration to new versions of the
software much more difficult

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

19

SAP R/3 Document Principle


Each business transaction that writes data to the
database creates a uniquely numbered
electronic document
Each document contains information such as
Responsible person
Date and time of the transaction
Commercial content

Once created, a document can not be deleted


from the database

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

20

Review

SAP and SAP R/3


Integrated Business Solution
Architecture
Client/Server Software
Relational Database
SAP R/3 Modules
Configurable Software
Programming Code Modifications Be Careful!!
SAP R/3 Document Principle
January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

SAP AG and The Rushmore Group, LLC 2008

21

ECC 6.0

January 2008

Unit 1Unit 1
Business Processes,
Integration, and
Configuration
g
in the
SAP R/3 Environment

Two Differing Learning Approaches

Standard SAP training


Level 1: Introductory
Level 2: Business processes
Level 3: Configuration

Our Approach
Cross functional
Understand business processes and their
relationships to SAP's organizational structure
Highlight integration/configuration!!
January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

23

Learning by Creating a Model


Business
Understanding business processes and their
integrative nature
Understanding SAP organizational structures
Combining business processes and SAP
organizational structure (i.e., configuration)
Test the newly configured system
View system outputs - statistics, reports, and
graphics

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

SAP AG and The Rushmore Group, LLC 2008

24

ECC 6.0

January 2008

Pen Incorporated

Start-up company in the promotional pen


business
Initially buys and re-sells different lines of
promotion p
p
pens
Sells to both wholesale and retail procure and
distribute
Later acquires a production facility to
manufacture its own product produce and
distribute
January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

25

SAP R/3 and


Business Processes

- Overview -

Pen Incorporated
Procure for Sales Order

Pre-Sales
Activity

Sales Order

Availability
Check
In
Inventory

January 2008

Billing

Accounts
Receivable

Goods to
Delivery

YES

Plant or
Warehouse

NO

Purchase
Requisition

Delivery

Inventory
Postings

General
Ledger
Accounts

Goods from
Purchase Order
Purchase
Order

Goods
Receipt

Invoice
Receipt

Accounts
Payable

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

SAP AG and The Rushmore Group, LLC 2008

27

ECC 6.0

January 2008

Pen Incorporated
Produce for Sales Order

Sales
Order

Pre-Sales
Activity

Delivery

Availability
Check

Goods Issued
to Delivery

In
Inventory

NO

Accounts
Receivable

Billing

Plant or
Warehouse

YES

Issue Goods
to Production
Order

Planned
Order

January 2008

General
Ledger
Accounts

Inventory
Postings

Goods from
Production Order

Production
Order

Completion Confirmation

Accounts
Payable

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

28

SAP Enterprise System

SD

FI

Sales and
Distribution

Financial
Accounting

MM

CO

Materials
PP Mgmt.
Production
SM Planning
Service
Mgmt.

Controlling

R/3

AM

Fixed Assets
Mgmt. EC

Enterprise
p
Client / Server
Controlling
QM
Integrated Business
PS
Quality
Project
Mgmt.
Solution
PM
WF System
Plant Maintenance

January 2008

Workflow

HR

IS

Human
Resources

Industry
Solutions

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

29

Logistics
Materials Management (MM)
Sales and Distribution (SD)
Production Planning (PP)
Quality Management (QM)
Plant Maintenance (PM)
Service Management (SM)

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

SAP AG and The Rushmore Group, LLC 2008

30

10

ECC 6.0

January 2008

Accounting and Finance

Financial Accounting (FI)


Controlling (CO)
Enterprise Controlling (EC)
Fixed Asset Management (AM)
Project Systems (PS)

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

31

Human Resources

Human Resources (HR)

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

32

Materials Management (MM)

SD

FI

Sales and
Distribution

Financial
Accounting

MM

CO

Materials
Mgmt.
Production
SM Planning
Service
Mgmt.

Controlling

R/3

PP

AM

Fixed Assets
Mgmt. EC

Enterprise
p
Client / Server
Controlling
QM
Integrated Business
PS
Quality
Project
Mgmt.
Solution
PM
WF System
Plant Maintenance

January 2008

Workflow

HR

IS

Human
Resources

Industry
Solutions

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

SAP AG and The Rushmore Group, LLC 2008

33

11

ECC 6.0

January 2008

Components of Materials Management

Foreign
Trade/
Customs

Valuation
Logistics
Invoice
Verification

Materials
Management
(MM)

Purchasing

Product
Catalog

MRP
Service
Entry
Sheet

Material
Master
Inventory
Mgmt.

January 2008

Service
Master

Physical
Inventory

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

34

Integration

Procurement Process
(Procure-to-Pay)

Purchase
Requisition

Purchase
Order

Notify
Vendor
Payment
to Vendor
Vendor
Shipment

Invoice
Receipt

January 2008

Goods
Receipt

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

35

Sales and Distribution (SD)

SD

FI

Sales and
Distribution

Financial
Accounting

MM

CO

Materials
Mgmt.
Production
SM Planning
Service
Mgmt.

Controlling

R/3

PP

AM

Fixed Assets
Mgmt. EC

Enterprise
p
Client / Server
Controlling
QM
Integrated Business
PS
Quality
Project
Mgmt.
Solution
PM
WF System
Plant Maintenance

January 2008

Workflow

HR

IS

Human
Resources

Industry
Solutions

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

SAP AG and The Rushmore Group, LLC 2008

36

12

ECC 6.0

January 2008

Components of Sales and Distribution

Shipping
Transport
Sales
Information
System

Sales
Support
pp

Sales and
Distribution
(SD)

Master
Data

Billing
Foreign
Trade

Sales
Credit
Mgmt.

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

37

Integration

Sales Order Process


(Order-to-Cash)

Check
Availability

Sales Order
Entry

Pick
Materials

Receipt of
Customer Payment

Pack
Materials
Invoice
Customer

January 2008

Post Goods
Issue

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

38

Financial Accounting (FI)

SD

FI

Sales and
Distribution

Financial
Accounting

MM
PP
SM

CO

Materials
Mgmt.

R/3

Production
Planning

Service
Mgmt.

Controlling

AM

Fixed Assets
Mgmt. EC

Enterprise
p
Client / Server
Controlling
QM
Integrated Business
PS
Quality
Project
Mgmt.
Solution
PM
WF System
Plant Maintenance

January 2008

Workflow

HR

IS

Human
Resources

Industry
Solutions

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

SAP AG and The Rushmore Group, LLC 2008

39

13

ECC 6.0

January 2008

Components of Financial Accounting

Accounts
Receivable

Financial
Accounting

General
Ledger

Fixed
Assets
Accounts
Payable

(FI)

Banks
Special
Purpose
Ledger

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

40

Integration

Procurement Process
(Procure-to-Pay)

Purchase
Requisition

Purchase
Order

Notify
Vendor
Payment
to Vendor
Invoice
Receipt

January 2008

Vendor
Shipment
Goods
Receipt

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

41

Integration

Sales Order Process


(Order-to-Cash)

Check
Availability

Sales Order
Entry

Pick
Materials

Receipt of
Customer Payment
Invoice
Customer
January 2008

Pack
Materials

Post Goods
Issue

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

SAP AG and The Rushmore Group, LLC 2008

42

14

ECC 6.0

January 2008

SAP R/3 Configuration

- Overview -

SAP Enterprise System

SD

FI

Sales and
Distribution

Financial
Accounting

MM

CO

Materials
PP Mgmt.
Production
SM Planning
Service
Mgmt.

Controlling

R/3

AM

Fixed Assets
Mgmt. EC

Enterprise
p
Client / Server
Controlling
QM
Integrated Business
PS
Quality
Project
Mgmt.
Solution
PM
WF System
Plant Maintenance

January 2008

Workflow

HR

IS

Human
Resources

Industry
Solutions

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

44

Business Process Integration


The Stool
Components
Organizational Data
Master Data
Rules
Transactions

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

SAP AG and The Rushmore Group, LLC 2008

45

15

ECC 6.0

January 2008

Business Process Integration

FI

MM

SD

Rules

FI
MM
SD
January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

46

Organizational Data

A hierarchy in which the organizational units in


an enterprise are arranged according to tasks
and functions
Are static data and are rarelyy changed
g
The definition of organization units is a
fundamental step, it is a critical factor in how the
company will be structured

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

47

Master Data

Master data is relatively fixed

Material master data


Vendor master data
Purchasing information record
General Ledger master data

Before making the master data configurations,


you must have completely defined the
organizational structures

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

SAP AG and The Rushmore Group, LLC 2008

48

16

ECC 6.0

January 2008

Rules

Defines the parameters for Master Data and


Transactions
Determines functionality for Master Data and
Transactions
Relatively fixed
Changes as policy changes

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

49

Transaction Data

Includes internal and external exchanges that


describe business activities
Unlike master data, aggregate transactional data
is dynamic
y
each transaction is unique
q

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

50

Functional Areas Where and When

Business Process Integration I


Financial Accounting (FI)
Materials Management (MM)
Sales and Distribution (SD)

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

SAP AG and The Rushmore Group, LLC 2008

51

17

ECC 6.0

January 2008

Functional Areas Where and When

Business Process Integration II

Financial Accounting (FI)


Controlling (CO)
Materials Management (MM)
Production Planning (PP)
Quality Management (QM)
Sales and Distribution (SD)

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

52

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

53

January 2008

SAP AG - University Alliances and The Rushmore Group, LLC


2008. All rights reserved.

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SAP AG and The Rushmore Group, LLC 2008

18