UNIT1

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
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 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

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

Integrated Business Solutions

Software Vendors
SAP
Oracle (Peoplesoft and J.D. Edwards)
Microsoft Great Plains, Axapta, Solomon
IBM
BAAN
January 2008

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

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

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

11
Three-Tier SAP Structure

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

13
mySAP Business Suite
mySAP PLM
mySAP
ERP
mySAP
SRM
mySAP
CRM
mySAP SCM
SAP NetWeaver
January 2008

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

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

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

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

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

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

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

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

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

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

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

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

28
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

29
Logistics
Materials Management (MM)
Sales and Distribution (SD)
Production Planning (PP)
Quality Management (QM)
Plant Maintenance (PM)
Service Management (SM)
January 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

31
Human Resources
Human Resources (HR)
January 2008

32
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

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

34
Integration
Procurement Process
(Procure-to-Pay)
Purchase
Requisition
Purchase
Order
Notify
Vendor
Payment
to Vendor
Vendor
Shipment
Invoice
Receipt
January 2008
Goods
Receipt

35
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

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

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

38
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

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

40
Integration
Procurement Process
(Procure-to-Pay)
Purchase
Requisition
Purchase
Order
Notify
Vendor
Payment
to Vendor
Invoice
Receipt
January 2008
Vendor
Shipment
Goods
Receipt

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

42
14
ECC 6.0
January 2008
SAP R/3 Configuration
- Overview -
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

44
Business Process Integration

The Stool
Components
Organizational Data
Master Data
Rules
Transactions
January 2008

45
15
ECC 6.0
January 2008
Business Process Integration
FI
MM
SD
Rules
FI
MM
SD
January 2008

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

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

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

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

50
Functional Areas Where and When
Business Process Integration I

January 2008

51
17
ECC 6.0
January 2008
Functional Areas Where and When
Business Process Integration II

Controlling (CO)
Production Planning (PP)
Quality Management (QM)
January 2008

52
January 2008

53
January 2008

54
18

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ECC 6.

SAP AG - University Alliances and The Rushmore Group, LLC

SAP AG and The Rushmore Group, LLC 2008

Name of the software

SAP AG - University Alliances and The Rushmore Group, LLC

SAP AG - University Alliances and The Rushmore Group, LLC

Designed to satisfy the information needs for all

SAP AG - University Alliances and The Rushmore Group, LLC

SAP AG and The Rushmore Group, LLC 2008

Enables a company to link its business processes

SAP AG - University Alliances and The Rushmore Group, LLC

Integrated Business Solutions

SAP AG - University Alliances and The Rushmore Group, LLC

Central relational database (e.g., Oracle,

SAP AG - University Alliances and The Rushmore Group, LLC

SAP AG and The Rushmore Group, LLC 2008

Tables: Defines and links thousands of tables of

Consistent and accurate data

SAP AG - University Alliances and The Rushmore Group, LLC

SAP AG - University Alliances and The Rushmore Group, LLC

Three-Tier SAP Structure

SAP AG - University Alliances and The Rushmore Group, LLC

SAP AG and The Rushmore Group, LLC 2008

SAP Enterprise System

PCs, Laptops, etc.

SAP AG - University Alliances and The Rushmore Group, LLC

mySAP Business Suite

SAP AG - University Alliances and The Rushmore Group, LLC

mySAP ERP Modules

SAP AG - University Alliances and The Rushmore Group, LLC

SAP AG and The Rushmore Group, LLC 2008

SAP AG - University Alliances and The Rushmore Group, LLC

SAP R/3 Basics

SAP AG - University Alliances and The Rushmore Group, LLC

SAP AG - University Alliances and The Rushmore Group, LLC

SAP AG and The Rushmore Group, LLC 2008

Programming Code Modifications

SAP AG - University Alliances and The Rushmore Group, LLC

SAP R/3 Document Principle

Once created, a document can not be deleted

SAP AG - University Alliances and The Rushmore Group, LLC

SAP and SAP R/3

SAP AG - University Alliances and The Rushmore Group, LLC

SAP AG and The Rushmore Group, LLC 2008

Two Differing Learning Approaches

Standard SAP training

SAP AG - University Alliances and The Rushmore Group, LLC

Learning by Creating a Model

SAP AG - University Alliances and The Rushmore Group, LLC

SAP AG and The Rushmore Group, LLC 2008

Start-up company in the promotional pen

SAP AG - University Alliances and The Rushmore Group, LLC

SAP R/3 and

SAP AG - University Alliances and The Rushmore Group, LLC

SAP AG and The Rushmore Group, LLC 2008

SAP AG - University Alliances and The Rushmore Group, LLC

SAP Enterprise System

SAP AG - University Alliances and The Rushmore Group, LLC

SAP AG - University Alliances and The Rushmore Group, LLC

SAP AG and The Rushmore Group, LLC 2008

Accounting and Finance

Financial Accounting (FI)

SAP AG - University Alliances and The Rushmore Group, LLC

Human Resources (HR)