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What is SAP R/3 Release 4.6?

Learning objective

After completing this topic, you should be able to describe how SAP R/3 Release 4.6
supports a business environment.

1. SAP business-process software

SAP R/3 Release 4.6 is a client/server business-process software application that assists
a company in computerizing its business environment and reaching its business goals.

Note

Client/server describes the relationship between two computer programs in which

one program, the client, makes a service request from another program, the
server, which fulfills the request. The SAP client is a Windows program called SAP
GUI, which is used to log on to the R/3 system. It provides a bridge between the
R/3 system and the user interface.

SAP R/3 is a product of SAP, the world's largest supplier of business-process software.
SAP stands for "systems, applications, and products in data processing".

SAP R/3 Release 4.6 consists of several application modules that support all of a
company's business transactions, accessed through the EnjoySAP client.

Note

EnjoySAP is the concept behind Release 4.6. It features a new graphical user
interface and personalized user profiles. You access EnjoySAP Release 4.6
through client software installed on your PC, or through your web browser and
mySAP.com. EnjoySAP is designed to make working with SAP R/3 an easier,
more streamlined experience.

Examples of the modules include Financials (FI), Human Resources (HR), Production
Planning (PP), Plant Maintenance (PM), and the Basis system.
2. Real-time processing

Release 4.6 features integrated application modules that interact with a single set of
master records for your enterprise, so everyone in the company shares the same data.

When you make a change to one application module, the SAP R/3 system automatically
updates the corresponding data in the other application modules.

Question

Release 4.6 uses real-time processing to update information in the master records.

What do you think this means?

Options:

1. The information you enter is automatically saved to your own computer to

avoid data loss
2. SAP R/3 processes information quickly
3. You can immediately edit the information that you enter
4. Information is automatically updated as soon as you enter it into the system

Answer

The system is automatically updated as soon as you enter information.

Real-time processing prevents data redundancy and allows employees to see the most up-
to-date information at their desktops.

Information is protected by record locking - only one user can modify data in a record at a
time. This prevents data conflicts.

Any enterprise that wants to fully integrate its business processes must use one source for
customer, product, and supplier data.

The SAP R/3 system allows for this by providing a single set of master records for the
enterprise. This means that your entire company can share the same customer or material
information that is entered in the SAP system master records.

Question

What are some of the characteristics of real-time processing using SAP?

 Options:

1. A single set of master records

2. Data redundancy prevention
3. Record locking
4. Standalone computing

Answer

Some of the characteristics of real-time processing using SAP include a single set
of master records, record locking, and data redundancy prevention.

Option 1 is correct. This means that your entire company can share the same
customer or material information.

Option 2 is correct. In this way, users get to see the most up-to-date information at
their desktops.

Option 3 is correct. The information is protected by record locking, which means

that only one user can modify data in a record at a time. This prevents data
conflicts.

Option 4 is incorrect. SAP R/3 Release 4.6 is a client/server business-process

software application. This, however, does not always imply real-time time
processing.

3. The interrelationship of application modules

The application modules in Release 4.6 are integrated into a workflow of business events
and processes across department and financial areas. Each module shares its information
with other modules, thereby creating an integrated system that provides real-time and up-
to-date information.

The displayed diagram shows some of the modules you can build together to make up
your SAP system.

Basis

CO

FI

HR

MM

PP

SD
Basis
The Basis module is essential to any SAP R/3 system. This module:

manages users
provides the runtime environment for SAP applications
creates a stable architecture framework for the system
optimizes applications in the system environment
contains system administration tools
provides interfaces for external products and decentralized system parts
allows resource and system module distribution
CO
The Controlling (CO) module is chiefly concerned with analyzing the revenue and
expenses from the components of FI, HR, MM, and SD modules and posting them
via cost and revenue elements for analysis. CO contains components such as:

Cost Center Accounting

Profitability Analysis
Overhead Cost Accounting
Profit Center Accounting
Product Cost Controlling
FI
The Financials module (FI) manages and reports on General Ledger and subledger
accounts using a chart of accounts that is defined by your company. It contains
components and activities such as:

Accounts Receivable
Accounts Payable
Asset Accounting
General Ledger accounting
Treasury
Cash management
HR
The Human Resources (HR) module is chiefly concerned with the administration of
personnel and contains components and activities such as:

recruitment
training and personnel development
payroll
work time management
compensation and benefits
career and succession planning
MM
The Materials Management (MM) module is used for procurement and inventory
management and contains activities such as:

purchasing requisition
vendor selection
purchase order
goods issue
invoice verification
vendor payment
PP
The Production Planning (PP) module is used to plan and control the manufacturing
 elements of the company and contains components such as:

Sales and Operations Planning

Master Production Scheduling
Materials Requirements Planning
Production Order
Production Control
SD
The Sales and Distribution (SD) module helps improve the efficiency of many tasks
carried out in the customer order management cycle. It contains activities such as:

customer order
inventory sourcing
delivery
invoicing
customer payment

Other Release 4.6 application modules include:

Fixed Asset Management (AM)

Project System (PS)

Industry Solutions (IS)

Plant Maintenance (PM)

Quality Management (QM)

Enterprise Controlling (EC)

Investment Management (IM)

Service Management (SM)

Customer Relationship Management (CRM)

Advanced Planner and Optimizer (APO)

Business-to-Business Procurement (B2B)

Business Information Warehouse (BW)

To examine what application modules do and how they connect to each other in more
detail, let's take a look at the following application modules:

Sales and Distribution (SD)

Materials Management (MM)

Financials (FI)

Production Planning (PP)

Suppose the company you work for manufactures motorcycle helmets. A customer has
ordered 150 helmets.

First you use the Sales and Distribution (SD) module to enter the customer request and
generate a sales order. The SD module draws information from the customer master and
the material master to complete the customer order and generate a sales order.

Note

The customer master is a single location that contains all customer-specific

 information for your company.

The material master is the central source for material-specific data in Release 4.6.
All Logistics modules use it to generate Logistics documents.

The SD module automates the integration of customer ordering and information, making
the customer order management cycle more efficient.

Immediately after you generate a sales order, the SD module creates a delivery document,
which includes shipping information. This information will inform warehouse managers
which helmets to collect from stock.

Release 4.6 copies information from one document into the next, thereby reducing the
need for manual data entry and minimizing the scope for errors.

Additionally, if materials need to be purchased or manufactured, the order information is

passed to the Materials Management (MM) module, where a requisition is generated, or to
the Production Planning (PP) module, where the production work is scheduled.

When you create a sales order, integration occurs between the SD and Financial (FI)
modules. This happens because SAP R/3 checks the customer's credit limit, which is
stored in FI. In addition, the creation of the sales order updates your company's cash
forecast, which is also stored in the FI module.

Question

When you create a sales order, SD integrates with another module to verify that
the ordered material will be available on the requested delivery date.

Which module do you think this is?

Options:

1. Accounts Receivable (AR)

2. Controlling (CO)
3. Materials Management (MM)
4. Production Planning (PP)

Answer

SD integrates with the MM module when you create a sales order. This is to verify
that the ordered material will be available on the requested delivery date.
 SD integrates with the Production Planning (PP) module when materials entered on sales
orders require a planning strategy, such as make to order. When this happens, Release
4.6 automatically creates a production order in the module.

Application modules share a common user interface and architecture. You navigate each
module in the same way - so in addition to being integrated technically, they are also
integrated in look and feel.

Question

What are some of the components of the Controlling (CO) module?

Options:

1. Accounts Receivable
2. Cost Center Accounting
3. Invoicing
4. Profitability Analysis

Answer

Components of the Controlling (CO) module include Cost Center Accounting and
Profitability Analysis.

Option 1 is incorrect. Accounts Receivable is an element of the Financials module

(FI).

Option 2 is correct. The Controlling (CO) module is chiefly concerned with

analyzing the revenue and expenses from the components of FI, HR, MM, and SD
modules and posting them via cost and revenue elements for analysis.

Option 3 is incorrect. Invoicing is an activity of the Sales and Distribution (SD)

module.

Option 4 is correct. Profitability analysis is a key activity of any financial analysis

and determines the future viability of an organization.

4. Globalization features

In today's competitive worldwide market, globalization is one of the primary challenges

facing any organization that seeks to integrate its business processes.

A business system must be capable of supporting all of an organization's offices, across

the globe. The R/3 system has no organizational or geographical boundaries.
Question

Which of the following challenges of globalization do you think are addressed by

Release 4.6?

Options:

1. Cultural differences
2. Different currencies
3. Different tax systems
4. Language barriers

Answer

Release 4.6 supports globalization by removing organizational and geographical

boundaries. It supports multiple currencies, taxation systems, and languages so
your organization can implement one system in multiple operations.

SAP's comprehensive e-business platform, mySAP.com, helps companies collaborate and

integrate their business processes via the Internet, and provides employees with the
services and solutions they need in a global marketplace.

Here you can see the SAP Community section of mySAP.com, through which you can
access SAP experts, demos, and webcasts. You can also participate in discussions and
polls.

mySAP.com includes the mySAP Workplace and mySAP Marketplace.

This is an example of the mySAP Workplace which provides employees with an easy-to-
use, web-based user interface that serves as an alternative to an application-based user
client. All user tasks are assigned by user roles, and users can customize their views. Your
organization can also integrate search engines, web services, and e-mail into the
Workplace.

And mySAP Marketplace presents information, products, and content for your organization
to external businesses and users. You can segment products amongst the business
communities, and business partners can integrate their business processes with yours
using One-Step Business.

Question

Which statements about mySAP Marketplace are correct?

 Options:

1. It presents information for your organization to external businesses and users

2. It serves as an alternative to the SAP application-based user client
3. It's a component of mySAP.com

Answer

mySAP Marketplace is a component of mySAP.com and presents information for

your organization to external businesses and users.

Option 1 is correct. You can segment products among business communities, and
business partners can integrate their business processes with your processes
using One-Step Business.

Option 2 is incorrect. mySAP Workplace, which provides employees with an easy-

to-use, web-based user interface, serves as an alternative to an application-based
user client.

Option 3 is correct. mySAP.com helps companies collaborate and integrate their

business processes via the Internet. It includes mySAPWorkplace and mySAP
Marketplace.

Summary

SAP R/3 Release 4.6 is a client/server business process software application that assists a
company in achieving its business goals.

Release 4.6 uses real-time processing to immediately update data to the entire system.
Record locking is used to prevent two users from modifying a record at the same time.

There are a number of application modules to support business activities. Application

modules have a common architecture and interface, and they can be navigated in the
same way.

To facilitate the process of globalization, Release 4.6 supports multiple languages,

currencies, and tax systems. It also links into mySAP.com and the mySAP Workplace,
which provides a browser-based work area for users. mySAP Marketplace provides a
business exchange for your organization, partners, and customers.

Table of Contents

| Top of page |
| Learning objective |

| 1. SAP business-process software |

| 2. Real-time processing |

| 3. The interrelationship of application modules |

| 4. Globalization features |

| Summary |

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