ERP

Enterprise Resource Planning

Introduction

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Definition
Enterprise resource planning is a strategy to plan the resources to get the best out put in an organization.
Resource
Money, Machine, Material and Men

A company or An organization

Strategy A Plan

Enterprise
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Planning
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SAP
SAP (Systems Applications and Products in data processing ) is an ERP product, it integrates the overall organization into a system. It is made for providing ERP solutions to the organizations. It is introduced in 1972 by the company SAP AG. its a Germany based company established by 4 former employees of IBM.
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Role of SAP in organizations

Organization w/o SAP Practice Organization with SAP Practice

Sales team

sales

Human resources

Production

HR

SAP system
Fina nce

produ ction

Finance

Purchasing

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Advantages to have SAP Practice

SAP is the wonderful software for ERP solutions. It fills the gap between the different departments together in a company. It helps to get the reports analysis to take quick and effective decisions. It saves the time while serving the customers by quick response. It reduces the production and maintenance cost in organizations.
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SAP-SD
Enterprise Structure In SAP-SD enterprise structure we have the following organizational elements. 1. Sales organization 2. Distribution channel 3. Division 4. Sales area 5. Sales office 6. Sales group
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Sales Organization
Sales organization is a highest organizational element in sales and distribution module, which takes care about sales processes with in a company code. Sales organization is decided based on the geographical locations. Based on the requirement we can have multiple sales organizations under one company code. SAP always suggests to have only one sales organization. Sales organization is assigned to the company code. Relationship: the relationship between the sales organization and company code is one to many

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Distribution Channel
Distribution Channel is one of the organizational element in sales and distribution module. Distribution channel is a channel through which the goods are delivered to the customer. Ex: Retail, whole sale, direct, Internet and institutional sales etc. Distribution channel is assigned to sales organization. We can have multiple distribution channels with in a sales organization. Relationship- Relationship between Distribution channel and sales org. is many to many.
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Division
Division is one of the organizational element in SD. Division is the range of the products or product line is called as division. Division is assigned to sales Organization, because sales organization decides the divisions to be sold. Division is decided based on the purpose and usage of the product. A company can have multiple Divisions with in a sales organization. Relationship- the relationship between the Division and Sales organization is many to many.
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Sales area
Sales area is a combination of the sales organization, distribution channel and division. Sales area represents the basic sales processes of the company. A Company can have multiple sales areas.

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Sales office
Sales office is an organizational element in SD. Sales office is a geographical location, where the sales activities are to be taken. We assign sales office to the sales area.

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Sales group
Sales group is an organizational element in SD. Sales group is a group of employees who work for a particular Division with in a sales office. Sales group is assigned to sales office.

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Basic view of enterprise structure in SD

In next slide we can see how the organizational elements are related together in sales and distribution.

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Company code

Sales org1
Sales area

Sales org2

Dist.chnl

Division

Dist.chnl
Sales line

Division

Sales office

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Sales group

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Customer Master
Maintaining the data of the customers in R/3 system is called customer master. Customer master data is maintained at 3- levels. 1. General data 2. Company code data 3. Sales area data Again these views have tabs and fields.

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1. General data
General data contains the data which is related to the customer general information. Example like communication address,etc. In this view we have 4 important tab pages. those are, 1. Address- here we specify the address of the customer. 2. Marketing- in this tab we have one important field is Customer classification:- it specifies the classification of the customer. it is defined based on the turnover they generated. Ex: A- 50-60 lac B: 30-50 lac, C: 20-30 lac.

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3.Unloading Points- here we have to specify the location where we have to unload the goods at customers place.
In this tab page we have 2 important fields. Receiving points- here we have to specify the receiving points under one unloading point. we can have multiple receiving points with in an unloading point. Goods receiving hours- here we have to specify the flexible hours of the customer for the goods to be received at customers place. 4.Contact person- here we can specify the contact person who is responsible at customers place.

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2. Company code data

this view contains the data related to financial transactions.

In this view we have two important tab pages. 1. Accounting management- which contains the accounting information. In this tab we have the field called Reconciliation account- it is the the account in G/l account the values will parallel posted to the sub ledger account. It is specified to the customers to maintain the balance sheet in simplified way. 2. Payment transaction- the information regards payment transactions is maintained here. here we have 2 fields. Terms of payment- it represents the payment periods and discount percentages given to the customer. 2/4/2013

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Payment history record- if we check this field the payment history of the customer is recorded.

3. Sales area data

In this view we have to maintain the data related to sales transaction. In this view we have few tab pages with fields. those are, 1. sales- in this tab page we have the following fields sales district- it specifies the district in which the customer is existed. sales office- it specifies the sales office in which the customer exist.
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Sales office- it specifies the sales group which is taking care of the customer.

Customer group- it specifies the group of the customer which can be based on the transaction they execute. Currency- it specifies the currency of the customer. Switch off rounding- if we check this field the order quantity will not be rounded. Customer pricing procedure- it enables the system to automatically determine a corresponding pricing procedure.

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2. shipping- in this tab page we have few fields Delivery priority- it specifies the delivery priority Shipping condition- it specifies the shipping condition Delivering plant- it represents the plant which delivers the goods to the customer Pod- it specifies the proof of delivery after shipping Order combine- if we check this field the open orders will be combined.

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Partial delivery- here we can specify that whether partial deliveries are allowed or not.

Max partial deliveries- here we can specify the maximum partial deliveries for the customer. 3.Billing- in this tab page we have few fields. Rebate- if we check this field the customer will get rebate. Inco terms- here we have to specify the international common terms. a/c assignment group- it enables the system to post the sales values of the customer to g/l account.
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Tax classification- it specifies the customer is liable for tax or not.

4. Partner functions- here the partners of the customer are existed. sold to party- customer who raise the order ship to party- customer who receives the goods bill to party- customer who receives the bill payer- customer who pays the bill

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Note: if we want to create a customer, first we must make few configuration settings. those are

Account group- it is a parameter to control the customer master. It represents the basic function of the partner. We have to define different account groups for different partners. Number ranges- every customer will have one number which is unique, for this we have to define the number ranges and assign the number ranges to the account group.
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Defining partner functions- Based on the requirement the customer may have different partners or it may act like all.

Like sold to party ship to party bill to party payer To get these partner functions in master data we have to configure these.
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