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Overview
SAP Stands for Systems Applications and Products in Data Processing
What is ERP?
Integrated system where all business activities happen in the same system.
But with ERP system such as SAP, all activities happen within the same ERP System.
Procurement Cycle
Sales Cycle
SAP Architecture
It has 5 Phases,
1. Project Preparation
2. Business Blueprint
3. Realization
a. Additional Testing
b. End user training
c. Cut over planning and activities
Client: Highest Org. Unit. Think of it as a System ID so if System name is Sandbox System ID (Client) is 100.
Company: Organizational unit in Accounting which representing a business organization according to the
requirements of commercial law in a particular country
Company Code: The smallest organizational unit of Financial Accounting for which a complete self-contained
set of accounts can be drawn up for purposes of external reporting.
This includes recording of all relevant transactions and generating all supporting documents required for
financial statements.
Chart of Accounts: Grouping of all the GL accounts that the Company has access to use.
Let’s take a scenario where a Company called ABC Corp. is implementing SAP.
This Company has the Corporate office in NY and will have different locations where they manufacture, sell
and operate from (legal entities) in TX, OK and KS.
Therefore ABC Corp will be represented in SAP as the Company and its legal entities in TX, OK and KS will be
setup as Company Codes.