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Systems, Applications and Products in Data Processing
What is SAP? Thousands of mid to large size companies worldwide use SAP software to run the majority of their day-today business transactions and processes. Called an enterprise system, or ERP (Enterprise Resource Planning) solution, it can literally run an entire enterprise. Companies can run SAP's transactions to support their Order to Cash, Procure to Pay, Plan to Produce, Hire to Retire business processes, and much, much more!
Introduction to SAP
Introduction to SAP the Company Five former IBM employees founded SAP in 1972 in Germany. The vision was to develop standard application software for real-time business processing. The first releases, called R1 and R2, were mainframe-only applications. SAP started with a set of Financial applications and then added logistics, manufacturing, and HR. In the 1980s, they moved to a true 3-tiered client-server solution and by the early 1990s, R/3 was released to the market. Introduction to SAP the Software
In 2000, SAP renamed their solution mySAP and released the latest version of SAP, ECC or Enterprise Core Component, and the most recent release is ECC 6.0. SAP's current release strategy is to provide Enhancement Packs with additional functionality instead of releasing new versions of the software. SAP's Enhancement Pack strategy eliminates major upgrades and allows customers to choose which enhancements to apply to their systems. SAP Module Introduction
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Financial Accounting (FI) Financial Supply Chain Management (FSCM) Controlling (CO) Materials Management (MM)
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Sales and Distribution (SD) Logistics Execution (LE) Production Planning (PP) Quality Management (QM) Plant Maintenance (PM) Project System (PS) Human Resources (HR)
The Finance Module is designed to record financial transactions in a manner consistent with external reporting. External reporting must be in compliance with a country's accounting principles and is required for public entities, regulatory agencies and information required by banks and other lenders. The module also handles legal consolidations, receivables, payables, fixed assets as well as banking functions if required. This is brief review of the components and processes associated with the SAP FI module. For a more indepth understanding of the Financial Accounting module, please review our available SAP Financial Accounting training. Please Note: The Learn SAP pages on this site are intended to be brief summaries for SAP customers who are encountering SAP for the first time. For more advanced knowledge, please review the articles in our SAP Library, and our SAP Trainingofferings for both Super Users and Project Teams.
This is brief review of the components and processes associated with the SAP FSCM module. For a more indepth understanding of the Financial Supply Chain Management module, please review our available SAP Financial Supply Chain Management training. Please Note: The Learn SAP pages on this site are intended to be brief summaries for SAP customers who are encountering SAP for the first time. For more advanced knowledge, please review the articles in our SAP Library, and our SAP Trainingofferings for both Super Users and Project Teams.
Report sales and gross profitability by external measures such as market segments or customer groups. Controlling consists of all master data, configuration, and reporting required to analyze both spend and revenues, both within and across organizations. This includes the following master data: y Cost Elements - cost and/or revenue accounts y Cost Centers - departmental units y Profit Centers - business lines, product lines or divisions y Internal Orders - projects or events y Functional Area - Cost of Sales Accounting y Statistical Key Figures - non financial statistics for allocating or measuring financial costs y Activity Types - Labor or other activity costs Business process associated with the SAP CO module:
Subcomponents of the SAP Controlling (SAP CO) Module: y CO-OM - Overhead Management - CO-OM-CCA - Cost Center Accounting - CO-OM-OPA - Internal Order Accounting - CO-OM-CEL - Cost Element Accounting - CO-OM-ABC - Activity Based Costing y CO-PCA - Profit Center Accounting y CO-PA - Profitability Analysis y CO-PC - Product Costing
This is brief review of the components and processes associated with the SAP CO module. For a more indepth understanding of the Controlling module, please review our available SAP Controlling training. Please Note: The Learn SAP pages on this site are intended to be brief summaries for SAP customers who are encountering SAP for the first time. For more advanced knowledge, please review the articles in our SAP Library, and our SAP Trainingofferings for both Super Users and Project Teams.
Subcomponents of the SAP Materials Management (SAP MM) Module: y Purchasing y Inventory Management y Logistics Invoice Verification y Physical Inventory y Material Valuation y Material Requirements Planning (MRP) y External Services Management This is brief review of the components and processes associated with the SAP MM module. For a more indepth understanding of the Materials Management module, please review our available SAP Materials Management training. Please Note: The Learn SAP pages on this site are intended to be brief summaries for SAP customers who are encountering SAP for the first time. For more advanced knowledge, please review the articles in our SAP Library, and our SAP Trainingofferings for both Super Users and Project Teams.
The Sales and Distribution (SAP SD) consists of all master data, system configuration, and transactions to complete the Order to Cash process. It includes the following information and processes: y Customer Master and Material Master data y Sales Orders y Deliveries y Pricing y Billing y Credit Management Order to Cash business process associated with the SAP SD module:
Subcomponents of the SAP Sales and Distribution (SAP SD) Module: y Master Data y Sales Support y Pendulum List Indirect Sales y Sales y Shipping and Transportation y Billing y Empties Management y Credit Management y Foreign Trade/Customs y Sales Information System This is brief review of the components and processes associated with the SAP SD module. For a more indepth understanding of the Sales and Distribution module, please review our available SAP Sales and Distribution training. Please Note: The Learn SAP pages on this site are intended to be brief summaries for SAP customers who are encountering SAP for the first time. For more advanced knowledge, please review the articles in our SAP Library, and our SAP Trainingofferings for both Super Users and Project Teams.
This is brief review of the components and processes associated with the SAP LE module. For a more indepth understanding of the Logistics Execution module, please review our available SAP Logistics Execution training. Please Note: The Learn SAP pages on this site are intended to be brief summaries for SAP customers who are encountering SAP for the first time. For more advanced knowledge, please review the articles in our SAP Library, and our SAP Trainingofferings for both Super Users and Project Teams.
SAP Production Planning (SAP PP) is compromised of the following modules: y Master Data - includes the material master, work centers, routings and bill of materials. y SOP - Sales and Operations Planning (SOP) provides the ability to forecast sales and production plans based on historical, current and future data. y DRP - Distribution Resource Planning allows companies the ability to plan the demand for distribution centers. y Production Planning - includes material forecasting, demand management, long term planning and master production scheduling (MPS). y MRP - Material Requirements Planning relies on demand and supply elements with the calculation parameters to calculate the net requirements from the planning run.
Shop Floor Control - includes the processing of production orders, goods movements, confirmations and reporting tools for production. y Capacity Planning - evaluates the capacity utilized based on the work centers available capacity to show capacity constraints. y Repetitive Manufacturing - in repetitive manufacturing, the manufacturing process is usually simple in that the same products are produced over a long period of time. This module provides the transactions and business process for companies to run repetitive manufacturing in SAP. y KANBAN - is a process of replenishment based on a pull system using KANBAN cards to generate the replenishment cycle. y Product Cost Planning - is the process of evaluating all the time values and value of component materials to determine the product cost. This is brief review of the components and processes associated with the SAP PP module. For a more indepth understanding of the Production Planning module, please review our available SAP Production Planning training. Please Note: The Learn SAP pages on this site are intended to be brief summaries for SAP customers who are encountering SAP for the first time. For more advanced knowledge, please review the articles in our SAP Library, and our SAP Trainingofferings for both Super Users and Project Teams.
The Quality Management module covers all classic quality management tasks, such as quality planning (setup of data for QM tasks), quality inspection, and quality control. SAP has several QM terms that are important to note. y Quality Planning: the creation and management of master data that is required to plan and complete inspections. y Quality Inspection: the identification of whether an inspection unit meets specified criteria. y Quality Certificates: documents that contain text, value, and inspection results, which are used to certify the material. y Quality Notifications: the recording and processing of internal or external problems that result from poor quality. y Quality Control: the combination of specification from inspection planning, results from quality inspections, and quality notifications form the basis for quality control. y Test Equipment Management: the management of test equipment in the form of master data records in SAP. The following figure shows a sample flow that depicts typical tasks in the Quality Management process flow.
This is brief review of the components and processes associated with the SAP QM module. For a more indepth understanding of the Quality Management module, please review our available SAP Quality Management training. Please Note: The Learn SAP pages on this site are intended to be brief summaries for SAP customers who are encountering SAP for the first time. For more advanced knowledge, please review the articles in our SAP Library, and our SAP Trainingofferings for both Super Users and Project Teams.
The following diagram illustrates the common process for both Corrective and Preventative Maintenance within the Plant Maintenance module:
Subcomponents of the SAP Plant Maintenance (SAP PM) Module: y Management of Technical Objects - includes master data objects such as functional locations and equipment master records. y Maintenance Processing - includes processing steps such as notifications and work orders. y Preventative Maintenance - includes maintenance planning and work scheduling tasks. This is brief review of the components and processes associated with the SAP PM module. For a more indepth understanding of the Plant Maintenance module, please review our available SAP Plant Maintenance training. Please Note: The Learn SAP pages on this site are intended to be brief summaries for SAP customers who are encountering SAP for the first time. For more advanced knowledge, please review the articles in our SAP Library, and our SAP Trainingofferings for both Super Users and Project Teams.
The following diagram illustrates the hierarchy of objects within an SAP Project:
This is brief review of the components and processes associated with the SAP PS module. For a more indepth understanding of the Project System module, please review our available SAP Project System training. Please Note: The Learn SAP pages on this site are intended to be brief summaries for SAP customers who are encountering SAP for the first time. For more advanced knowledge, please review the articles in our SAP Library, and our SAP Trainingofferings for both Super Users and Project Teams.
This is brief review of the components and processes associated with the SAP HR module. For a more indepth understanding of the Human Resources module, please review our available SAP Human Resources courses. Please Note: The Learn SAP pages on this site are intended to be brief summaries for SAP customers who are encountering SAP for the first time. For more advanced knowledge, please review the articles in our SAP Library, and our SAP Trainingofferings for both Super Users and Project Teams.
SAP Defined
"What Does SAP Stand For?" Don't say 'sap', say 'S' 'A' 'P'." Top Things SAP Stands For (From a User's Point of View) Stops All Production! Select Another Package Suffering and Pain Salary Advancement Program Scare Another Programmer Slow and Pointless Say a Prayer
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the original meaning (which is German) is: "Systeme, Anwendungen und Produkte in der Datenverarbeitung'.
When SAP came to America, it changed to Systems, Applications and Products. In the 1980s it was Systems, Applications and Products in Data Processing, a literal translation of the German wording.
Financials
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Accounting Customization Asset Accounting Controlling* Cost Center Accounting Financials* Financial Accounting Fixed Assets* Financial Supply Chain Management
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Logistics
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Inventory Management* Logistics Execution* Materials Management* Material Requirements Planning* Plant Maintenance* Pricing* Production Planning* Purchasing* Sales and Distribution*
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Analytics CRM Interaction Center and e-Commerce Marketing Middleware Sales Service
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Enterprise Asset Management Life Cycle Data Management Project Management Quality Management Variant Configuration
Human Resources
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Benefits Basic Organizational Management* Payroll Basic Personnel Administration* Talent Management Time Management
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Basic Plant Maintenance* Basic Plan to Produce* Basic Procure to Pay* Basic Product Costing* Basic Quality Management* Basic Sales and Distribution*
If you have trouble landing an SAP consulting position, look to strengthen either your hands-on SAP skills or your overall consulting skills. Then try again. In this market, persistence pays. I rarely see examples of people who are determined to become SAP consultants who don't eventually break through. But sometimes you have to be creative about finding the right opportunity. Self-education options are numerous, and plenty of training and certification options can help you on your way. But they won't take the place of hands-on experience, so keep that in the forefront of your career goals at all times. Content provided by Jon Reed. Jon is an independent SAP analyst and SAP Mentor who blogs, tweets, and podcasts on SAP market trends. He is the driving force behind JonERP.com, an interactive website that features Jon's SAP Career Blog and his podcasts for SAP professionals.
IFS/eInvoice improves and automates the supplier invoicing workflow by reducing the amount of invoices needing manual registration. Invoice scanning as well as true electronic invoices are enabled. Advanced rules for authorisation and matching with purchase orders significantly speed up the invoice processing. Events messages and history logs further improve the process and make follow-up easier.
IFS/Budget Management lets you manage the planning, budgeting, and forecasting workflow in IFS Applications. Use it to set your corporate strategy and to fix targets for the scorecard and budget templates. Continuous planning and rolling forecasting allow you to monitor and update the process at all stages. This component is designed for integration with Microsoft Excel.
IFS/Cash Flow offers you flexible liquidity analyses based on a variety of scenarios that you select. Use customer orders, purchase orders, accounts receivable, and payables to generate projections of your cash position. Use this information to analyse your company for better cash management and strategic decision making.
IFS/Accounts Payable simplifies your supplier invoicing and payment processes. Support for self-billing reduces invoice handling. A variety of currency and payment options contributes to the flexibility of the component while follow-up and analysis capabilities ensure full control.
IFS/Accounts Receivable simplifies customer invoicing and payment processes. It automatically handles coding of routine transactions. Integrated with customer orders and accounting rules functionality, it helps minimise errors and simplify routines.
IFS/Fixed Assets is a fully integrated accounting tool for strategically managing your companys fixed assets. Moreover, it includes multi-country support for depreciation methods, making it the perfect fixed asset tool for a global organisation.
IFS/Consolidated Accounts provides users with data from any number of companies consolidated into one place. They can map different charts of accounts, budgets, and currencies from subsidiary to parent. Snapshots of subsidiary data, taken during the period, enable management to view up-to-date consolidated financial information whenever needed.
IFS/General Ledger ensures you have a solid base for financial analysis and reporting, plus powerful simulation capabilities, including multiple general ledgers and advanced distribution rules. It helps you to gather and consolidate financial events from all systems and subsidiaries within a corporate group.