Introduction to SAP

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Business without ERP

Customers

PP contacts Purchasing for raw material

Purchasing
Customer Calls to place 1 order for a Car

Sales office/Inventory contacts PP

Production Planning
3
Sales office contacts Inventory

Sales

Inventory

Business without ERP (Contd..)

Lets add some more Business Processes

Business without ERP (Contd..)

Customers
What to manufactur e?? Whom to contact for status? What is Cost and profit

Where is my car

What is this confusion

Production Planning

Sales

Shop floor

Finance

Purchasing Vendors Inventory

Lets Deliver the end product to customer..

I did not order for a TRUCK!!!!

Dear Sir, Your Order

Sales

Business without ERP (Contd..)

I AM NOT TAKING DELIVERY AND WILL NEVER DEAL WITH YOU!

We are SORRY Sir

Sales

Overall Picture
Vendors

Sales General Ledger

Purchasing

Customers

A/R

A/P

Production Planning

Inventory

Shop Floor Execution

Why Enterprise Architecture Why Enterprise Architecture ? Numerous disparate information systems Integrating the data becomes costly

Time Money Resources

Inconsistencies and duplication of data Lack of timely information

Enterprise Structure Integrating Business

FA Marketing Treasury GL Shop Floor Sales AR AP Purchasing Payroll HR

Partner Systems
PP

Mfg.

Plants

Enterprise Architecture - Benefits

Eliminates the duplication, discontinuity and redundancy in data Increases the return on investment made on IT implementations Delivers quality information designed for the Enterprise as a whole Faster and cheaper Delivers quality information to produce a quality enterprise ER Satisfying Partners/CustomersP Reducing required manpower

Quiz Time
What is the full form of SAP?

When was SAP founded?

Quiz Time
What is the full form of SAP?
Systems Applications and Products in Data Processing

When was SAP founded?

Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira
Renamed in 1977

History of SAP
Systems Applications and Products in Data Processing
German : Systeme, Anwendungen, Produkte in der Datenverarbeitung

Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira

Renamed in 1977 Before 1977 : Systems Analysis and Program Development (German : Systemanalyse und Programmentwicklung)

SAP is both the name of the Company as well as their ERP Product

Steps to Strategic ERP

Enterprise Resource PlanningEnterprise is evolved through these Inter-Enterprise stages Resource Co-operation
Planning Collaborative Business

Create Strategic Value Total Company Value Automation Efficiency and Control

80s R/2

90s R/3

Today mySAP ERP

Evolution of ERP

Evolution of SAP

Quiz Time
SAP R/3 client server architecture evolved in year___________. Which is the latest SAP product?
mySAP ERP mySAP Business Suite mySAP.com with one step business

Quiz Time
SAP R/3 client server architecture evolved in year 1992 Which is the latest SAP product?
mySAP ERP mySAP Business Suite mySAP.com with one step business

SAP R/3 Architecture

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3 Tier Client / Server Architecture

The SAP R/3 architecture is based on a 3-tier
client/server principle

Presentation Server
Application Server

Database Server
Dedicated Servers are linked by Communication

SAP R/3 System Architecture (Contd...2)

Overview of Presentation & Database Servers

The Presentation Server
GUI only At workstation Very light Sends requests to application server Obtains screens from application server and displays

The Database Server

Interface between application server and RDBMS Also holds the vendor specific DB driver

SAP R/3 Conceptual Areas

SAP Conceptual Areas

Application Area
(Initiate and execute SAP transactions) (Functional)

Basis Area
(The technical administration of the system)

Development Area
(1. A developers workbench 2. Create & Test ABAP/4 programs) (Technical)

(Authorizations/Ids/etc)

Transport Request

Systems in R3
Development System (DC) Quality System (QC)

Production System (IC)

Client 110 100 etc..

Clients in R/3
The Logon Client
3 digit number ( 000 to 999) Helps maintain independent sets of data within the same R/3 system

Client mechanism and handling

Clients in R/3

R/3 Technology Environment

Hardware
UNIX Systems Bull IBM Digital SNI HP SUN Bull/Zenith Compaq Data General ... Digital NCR HP (Intel) Sequent IBM (Intel) SNI IBM AS/400 IBM S/390

Operating AIX Reliant systems Digital UNIX UNIX (SINIX)

HP-UX SOLARIS

Windows NT

OS/400

OS/390

Databases

ADABAS D DB2 for AIX INFORMIX-OnLine ORACLE

ADABAS D MS SQL Server INFORMIX-OnLine ORACLE

DB2 for OS/400

DB2 for OS/390

Dialog SAPGUI Languages

Windows 3.1, Windows 95, Windows NT, OSF/Motif *, OS/2 Presentation Manager (PM), Macintosh *, Java ABAP/4, C, C++, HTML, Java

Platforms and Databases supported by R/3

Operating Systems
AIX SINIX SOLARIS HP-UX Digital Unix Windows NT

Supported Hardware
IBM SNI SUN Digital HP Bull AT&T Compaq Bull / Zenith HP (Intel) SNI IBM (Intel) Digital (Intel) Data-General AS/400

Supported Front ends

Win 3.1/ 95 / NT OSF / Motif OS/2 Macintosh Win 3.1 / 95 / NT OSF / Motif OS/2 Macintosh

Supported Databases
DB2 for AIX Informix Online Oracle 7.1 ADABAS D Oracle 7.1 SQL Server 6.0 ADABAS D

OS/400

Win 95 OS/2

DB2/400

Client Server Benefit

Quiz Time
Presentation Server Application Server

Match the following

Windows Basis

3 Digit number Client Testing/ UAT

Quality System GUI

Quiz Time
Presentation Server Application Server

Match the following

GUI Business Administration Client Quality System (QC)

3 Digit number Client Testing/ UAT

SAP R/3 Modules

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SAP Modules
SD Sales and Distribution MM Materials Management PP Production Planning

FI Financial Accounting

SD
MM PP

FI CO
AM

CO Controlling AM Asset Management

SAP R/3
QM
QM Quality Management PM Plant Maintenance WM Warehouse Management

HR PM WM PS WF
HR Human Resources WF Workflow

PS Project System

Financial accounting (FI) SAP R/3 Application Controlling (CO) Asset management (AM)

Modules

Materials management (MM) Sales and Distribution (SD) Production Planning (PP) Quality management (QM) Plant maintenance (PM) & Customer Service (CS)

Module Functionalities

MM Material Procurement Inventory Management Batch Management Goods inspection Invoice Verification

PP BOM/Work Center/Routing MRP Capacity Evaluations Production Orders QM in production

SD Inquiry processing Sales Order Processing Delivery Processing Billing

FI General Ledger Accounts Payable Accounts receivable Cash management

CO Cost Center Accounting Product Costing Order Contribution Analysis

Quiz Time
Financial Accounting Controlling

Match the following

Inventory Management Shop Floor Control Financial Reporting Profit center Accounting Billing

Materials Management Sales & Distribution Production

Quiz Time
Financial Accounting

Match the following

Asset Management & Financial Reporting Profit center Accounting Inventory Management

Controlling

Materials Management Sales &

Billing

Module FI Financial Accounting

External reporting of
General ledger Accounts receivable/payable Sub-ledger accounts

with a user-defined Chart of Accounts Key elements

General ledger Accounts payable Accounts receivable Asset Management Special Purpose Ledger (FI-SL) Legal consolidation Accounting Information System

Financial Accounting
Bank Foreign exchange management Finance information system

Management of secureties and loans

Cash management and forecast

Accounts payable
Payables

Bank accounts
Receivables

Accounts receivable

General Ledger
Invoice verification Extended General Ledger
Consolidation

Credit management

Module CO Controlling
Represents the flow of cost and revenue Instrument for organizational decisions

Key elements of the CO application module include :

Cost center accounting Product cost Planning Product Costing

Profitability analysis
Profit center accounting Activity based costing Enterprise controlling

Module SD Sales and Distribution

Optimize tasks/activities in
Sales

Delivery
Billing

Key elements of the SD application module include :

Pre-sales support

Inquiry processing
Quotation processing Sales order processing Delivery processing Warehouse management Billing Credit Management Sales Information system

SALES INFORMATION SYSTEM

Sales Sales Support and Distribution Processing

Sales activity Inquiry Quotation Delivery free of charge Subsequent delivery free of charge Sales order Contract Scheduling agreement

MATERIALS MANAGEMENT

Sales

USD

Returns

Shipping
Delivery

Billing
Debit memo Invoice Credit memo

FINANCIAL ACCOUNTING

Module MM Materials Management

Supports
Procurement Inventory

Key elements
Materials procurement (purchasing) Inventory management

Invoice verification
Material valuation Vendor evaluation External Services management

Purchasing Information System (PurchIS)

Inventory Controlling Information system

BASIC DATA

Material Special stock Batch

Materials Management
PURCHASING

Purchase requisition

SD PP PM

Third-party order Requirements

Vendor/one-time customer Purchasing info record Service specifications Workflow Optical archive

RFQ/Quotation

Purchasing information system Vendor evaluation

MRP Direct requisition Release procedures Material/service Price comparisons Price comparison list Purchase orders Outline agreements Scheduling agreements

Purchasing

Service/ Spare Parts Service / Inspection QM spare parts lot

FI AM CO PS

G/L accounts Cash management and forecast

Fixed assets Cost center / Budget Project

INVENTORY MANAGEMENT

Texts Mail Communication

Classification Documents

Goods receipt/issue Transfer posting Quantities and values Physical inventory Storage bins

INVOICE VERIFICATION

Conditions

Check and post Price update

Module PP Production Planning

To plan and control the manufacturing activities Key elements
Bill of Material (BOM) Routings Work Centers Sales and Operations planning (SOP) Master Production Scheduling (MPS) Capacity Planning

Materials Requirement Planning (MRP)

Shop Floor Control (SFC) Production orders Product costing, activity-based costing Work in process Kanban Production planning for process industries (PP-PI) Repetitive Manufacturing

Production Planning
Customers
Sales Shipping Billing

SD PP

SD

Sales and Operations Planning Demand management / MPS Material requirements planning
Detailed Schedeling and Planning Capacity planning Shop floor control Costing Information system

Project Networks

PS SD

PM SD Maintenance Repairs Plant maintenance QM SD Inbound Raw Material Finished Goods

Vendors

MM SD Purchasing Warehouse Invoice verification

FI

Financial accounting

CO

Cost accounting

HR

Human resources

Module QM Quality Management

Supports
Quality planning

Inspection
Control for manufacturing Costing Procurement

Key elements
Quality planning Quality during procurement, production, distribution Quality Management Information - Quality inspection

Information System (QMIS)

Module PS Project System & HR Human Resource

PS Project Systems
Support planning, control, & monitoring of long term highly complex projects with defined goals Project WBS Plan Budget & Monitor Network Management Activity monitoring, Material Planning, Milestones, Capacities Scheduling

Key elements

Project Management Information System

HR Human Resource
Key elements Recruitment

Payroll & Time management

Travel Expense accounting & Benefits Workforce planning & Training administration Organization management

Quiz Time
Is Industry solutions an SAP module like FI/CO/MM
etc?

True/False
PP Supports procurement and Inventory FI Handles project budgeting and monitoring

Quiz Time solutions a module like FI/CO/MM Is SAP - Industry

etc? NO True/False
PP Supports procurement and Inventory
(False MM Supports these functions) FI Handles project budgeting and monitoring (False PS handles these functions)

IS Industry Solutions
Combines SAP R/3 application modules to additional industryspecific functionality Result of the research by industry Centers expertise (ICOE)

mySAP Industry Solutions (Some SAP for Aerospace & Examples) Defense
SAP for Media SAP for Automotive SAP for Mill Products SAP for Banking SAP for Mining SAP for Chemicals SAP for Oil & Gas SAP for Consumer Products SAP for Pharmaceuticals SAP for Engineering, Construction & Operations

SAP for Healthcare SAP for Public Sector SAP for High Tech SAP for Retail SAP for Higher Education & Research SAP for Service Providers SAP for Industrial Machinery & Components SAP for Telecommunications SAP for Insurance

SAP Product Overview

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Evolution of SAP products

Solutions mySAP CRM mySAP SCM mySAP HR mySAP PLM ..

mySAP ERP R/3 Enterprise

Web AS

mySAP Business Suite

R/3

SAP NetWeaver

Easing Upgrade Plans & Providing Transition Options

Bringing benefits of SAP Netweaver into installed base

New Customers have more entry options & receive world class ERP

Evolution of SAP products

SAP R/3

my SAP Solutions

my SAP Business Suite

SAP R/3
Financials

HR Corporate Services

Operations

mySAP Solutions
mySAP PLM mySAP SCM

mySAP Financials
mySAP CRM
mySAP SRM

mySAP HR Corporate Services Operations

Adaptive Business Solutions

SAP R/3

my SAP Business Suite

mySAP PLM

mySAP SCM

mySAP
mySAP SRM mySAP Financials mySAP HR Corporate Services Operations CRM

SAP NetWeaver Application Platform ( Web As) People Integration (Portal) Information Integration( BI,MDM) Process Integration (XI)

mySAP Solutions & Netweaver

mySAP CRM
mySAP SRM mySAP SCM

mySAP PLM

My SAP Customer Relationship Management (CRM)

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CRM Solution Map

CRM Holistic view

Where does a CRM solution fit?

Who What
Marketing Sales Service Executives Service
Use a CRM Solution to complete the Cycle

Engage

Fulfill Transact

Workplace
Which way How
Internet Mobile Telephony

Operational

Analytical

Collaborative

mySAP.com Portal Users

CRM Component Landscape

CRM System

OLTP R/3 System

BW As one big logical box Internet

Telephone Callers Mobile Clients

APO

Enterprise

CRM Internet Sales

B2C Scenario Consumer

Internetselling

BBP Scenario

Business Partner

B2R Scenario

Reseller

Service Planning within CRM Service module

Proactively engage customers with the correct resources at the most beneficial times

Customer Care

Provide customer with 24/7 accessibility from all communication channels with precise and consistent

informationon

Installed Base Management

Maintain an accurate, up-to-date record of a customers

MobileofSales module withinof the Suite tools tailored to the needs CRM
offline mobile sales force
Provides an integrated view of customers, prospects, products, services, competitors, activities, opportunities, quotations,

orders, etc.
Heavy cross-referencing for easy navigation

Facilitates the sales process by

Effectively managing customers and prospects
Providing appropriate customer, product and competitive information Determining product and pricing configurations

Quiz Time

What is the latest version of mySAP CRM

Name the three service modules with in CRM

Quiz Time

What is the latest version of mySAP CRM (Version 5.0) Name three service modules with in CRM
Service Planning Customer care

My SAP Supplier Relationship Management (SRM)

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SRM Solution Map

Key Components of mySAP SRM

mySAP SRM eProcurement mySAP SCE Supplier Collaboration Engine

Enterprise Buyer Prof 3.5

Business Inf. Whouse 3.0B Requisite Bugs Eye 3.5

Supplier self services 1.0 Bidding Engine 3.5 User Management 3.0

Requisite eMerge 3.5

Enterprise Portal 5.0

Exchange Infrastructure

Content Integrator

 Strategic Sourcing

Key Components of mySAP SRM

Sourcing analytics: Helps provide analytics based on supplier location, line of business Supplier evaluation: Helps you evaluate the supplier base within the organization systems and external market places to identify and select supplier to ensure reliable & uninterrupted supply Request for quotation and auctions: Provides electronic auctioning and bidding tools to compress sourcing cycle times

Contract management: Helps create and manage value and quantity contracts

Operational Procurement
Self-service procurement: Enables decentralizing procurement process within organization, without diluting the control Plan-driven procurement: Enables automatic purchase order generation for stock materials across the integrated supply chain Services procurement: Enables service procurement process to be managed online

Key Components of mySAP Supplier Enablement SRM.Contd.

and orders based document exchange

Supplier portal: Provides portal features for suppliers to manage their product data Supplier connectivity: Provides capability to connect multiple suppliers through XM_-

Content Management
Content consolidation: Provides capability to consolidate product and vendor
information Catalog content management: Provides capability to manage OCI compatible catalog with tools for data import, data edit and a search engine

Quiz Time

Name any one key component of mySAP SRM Solution map

Quiz Time

Name any one key component of mySAP SRM Solution map

Following are the three key components of mySAP SRM

My SAP Supply Chain Management (SCM)

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SCM Solution Map

mySAP SCM
SAP APO (Advanced Planning and Optimizing)
Flexible and Adaptive Planning, Integration with CRM, SRM and PLM

SAP ICH (inventory Collaboration Hub)

Collaboration with Suppliers

SAP EM (Event Management)

Monitor, alert and resolve exceptions

Typical SAP SCM Solution-scape

SAP R/3
Dominant source of Master Data in SAP SCM, destination of transaction data like planning outputs or Availability Checks for Execution systems

SAP SCM Transaction Data Core Interface Master Data

Module includea Demand Planning, SNP & Deployment, PPDS, GATP, TPVS and TLB Planning system where selective Master data maintained and sourced from R/3

Core interface SAP CRM, SAP SRM and SAP PLM

Planning Outputs include Forecasts, SNP or PPDS Planned Orders, Stock Transfers and Production Orders

Legacy Systems

BAPI

One-on-One comparison
i2 Technologies (Tradematrix SCM) Forecasting SAP SCM ORACLE APS Manugistics (Networks SCM)

Demand Demand Planner/Deman Planner d Management Demand Fulfillment Supply Chain Planning SAP GATP (Global ATP) SAP SNP (Supply Network Planning) PP/DS (Production Planning and Detailed

Oracle Demand Demand Planner Management Oracle GOP (Global Order Promising) Oracle ASCP (Advanced SCP) Oracle Manufacturing Scheduling Fulfillment Management Master Planning

ATP and Fulfillment Material and Resource planning

Manufacturing Factory Planning Planning

Manufacturing Planning and Scheduling

mySAP Product Life Cycle Management (PLM)

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PLM Solution Map

SAP Netweaver

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A Roadmap for Web Services

Services are changing SAPs Product portfolio

From Basis to WAS

Integration is the Key Challenge

Business Drivers
Document Mgmt Call Center Market Analysis

Extended Value Network Increased Market Dynamics

Integration costs are high

Long integration projects IT environments become increasingly rigid Lots of heterogeneous systems

SCM

ERP
E-sales

Pressure on IT increases
Must leverage existing investments Must support new business processes quicker

Trading

E-procurement
Technical systems

Must reduce total cost of ownership (TCO)

PLM

How to Address the Integration Challenge Reduce Complexity

Minimize the number of connections
through hubs
Document Mgmt Call Center Market Analysis

Use only one platform to integrate all people, information, and systems

Reduce Cost Integration

SCM ERP

Deliver .NET and J2EE interoperability Deliver adaptors for ISV products Deliver products, not projects

E-sales

Increase company performance

Increase ease of use, scalability and adaptability

Trading E-procurement Technical systems

Increase business process flexibility by using an Enterprise Services Architecture

PLM

The fundamental Web services standards are supported by the Web Application Server (Web AS), which is the basis for all other NetWeaver components

SAP NetWeaver
The integration and application platform for lower TCO Unifies and aligns people,
information and business processes
Integrates across technologies and organizational boundaries A safe choice with full .NET and J2EE interoperability

The Business foundation for SAP and partners

Powers business-ready solutions that reduce custom integration

Its Enterprise Services Architecture increases business process flexibility

SAP Mobile Infrastructure SAP Enterprise Portal

Business packages Collaboration

SAP NetWeaver in Detail (SAP Internal View) Product

SAP components and killer features NetWeaver
People Integration Composite Application Framework
Multi-channel Access Portal Collaboration

Tight coupling and alignment with SAP business solutions

SAP Business information Warehouse

Business content Tight integration to Sap Open architecture (Crystal, Accential )

Life cycle Management

Information Integration
Bus. Intelligence Knowledge Mgmt Master Data Management

Master Data Management

Coming in 2003

Process Integration
Integration Broker Business Process Management

SAP Exchange Infrastructure

Proxy generation and mapping tools Integration directory SAPs ability to execute

Application Platform
J2EE ABAP Multi-channel Access

SAP Web Application Server

Proven, scalable, comprehensive toolsets Leverage existing infrastructure/skillets

NetWeaver
Business content makes the business foundation

SAP Organizational units

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Business Scenarios Main Elements

Organizational Structure in SAP

Production Planning

Financial Accounting

Plant

Company Code

Controlling
Controlling Area

Client

Human Resources
Personnel Area

Sales and Distribution

Materials Management

Sales Area

Purchasing Organization

Company Code

Organizational Structure - Levels

Organizational Structure Business Functions

Enterprise Structure - Technology

SAP Organizational Structure: Cardinality

Client

Chart of Accounts
Purchasing Group

Company Code

Purchasing Org.

Plant

Sales Organ.

Shipping Point

Storage Location

Distribution Channel

Sales Office

Sales Group

Loading Point

Division

Quiz Time
Which is not a part of SAP Business Scenario main Elements
Master Data
Organizational Unit Transaction

Document
All the above

Answer True or False

Quiz Time
Elements

Which is not a part of SAP Business Scenario main

Master Data Organizational Unit Transaction Document

All the above

Answer True or False

One Chart of accounts can be assigned to many

Company Codes

Organizational Elements in FICO

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Organizational Units in R/3 FI

Overview: Organizational Elements in Accounting

Organizational Elements in Logistics

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Overview: Organizational Elements in Logistics

Quiz Time
State True/False
Company is obligatory in an organization structure

Fill in the blank

Unit responsible for procurement of materials/services
and negotiating with vendors is called ____________.

Quiz Time
State True/False
Company is obligatory in an organization structure (False Company code is obligatory)

Fill in the blank

Unit responsible for procurement of materials/services and negotiating with vendors is called Purchasing Organization

Organizational Elements in Sales

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Quiz Time
Fill in the blanks

Sales area is a combination of _____________, ________________ and _______________.

Quiz Time
Fill in the blanks

Sales area is a combination of

Sales Organization, Division and Distribution Channel

Navigation

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Logging on to SAP System

Logon pad with different systems

Adding to favorites
Steps to add transaction to favorites Step I: Select the transaction you want to add to favorites Step II: Right click on the transaction you want to add to favorites Step III: Select Add to favorites.

General Settings

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Variants Global Settings (at Country level) Calendar Public Holidays Holiday Calendar

Factory Calendar
Unit of Measurements Currencies Currency codes Conversions (quotations)

The Variant Principle

Calendar Holidays Define Public

Define Holiday Calendar
A combination of a yearly 12-month calendar and a list of all public

holidays that fall within a calendar year.

Gives an overview of all working days and all days off for a calendar year. It can be created to cover a validity period of several years. Can be defined according to the country or region in which they are

Define Factory Calendar Calendar

Calendar in which working days are numbered sequentially. Defined on the basis of a public holiday calendar. Validity period of a factory calendar must be within the

validity period of the public holiday calendar.

The weekdays that are working days must also be specified in this calendar.

Examples:

Monday through Friday are working days. Saturday, Sunday and public holidays are non-working

days.

Enables calculations with quantities and physical Unit of measurement units. Units of measurement are needed for internal conversions (such as kilogram <-> gram, but also centimeter <-> inch). The international system of units (SI) is used for this. UOMs are held centrally in the SAP System for all applications.

Currencies
Legal means of payment in a country.
You can manage ledgers in two parallel currencies in addition to the local currency

Currency settings

Currency codes

SAP maintains about 187 currencies. If any transaction in a new currency will happen for the organization, that currency to be maintained

Standard quotation

Can specify direct or indirect quotation. System by default will take direct quotes.
Conversion factors

Exchange Rate Type is used for different Exchange Rate Type business purposes where multiple rates can be maintained for a pair of currencies The following exchange rate types exist
Buying rate (G)
Bank selling rate (B) Average rate (M)

Historical exchange rate

Key date exchange rate

Default exchange rate types can be maintained

Exchange rates in the system for the following Exchange Rate purposes
Posting and Clearing
To translate amounts posted or cleared in foreign currency, or to check a manually entered exchange rate during posting or clearing. Exchange Rate Differences

To determine gains or losses from exchange rate differences.

Foreign Currency Valuation

Quiz Time
Fill in the blank

The difference between ____________ and

____________ is called spread.

SAP maintains ___________ number of currencies.

Quiz Time
Fill in the blank

The difference between Buying rate and

Selling rate is called spread. SAP maintains 187 number of currencies.

Thank You!

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