Introduction to SAP

Systems,

Applications, and
Products in Data Processing
(SAP)
Origins
IBM development team
Rejected by IBM due to
perceived high risk and low
profitability
Intellectual property
remained with the
development team
Started SAP on that basis

Name of the Company

SAP AG
SAP America
SAP UK

Name of the Software

SAP R/2
SAP R/3
SAP ECC 6.04

Who
is
SAP?
SAP AG
Founded in Walldorf, Germany in
1972
Worlds Largest Business Software
Company
Worlds Third-largest Independent
Software Provider

Company Statistics
Sales and Development locations in
more than 50 countries
97,000 customers in more than 120
countries
74% of the Forbes 500 companies
run SAP
Source: SAP AG website

What is SAP ERP?

Worldwide

usage
Designed to satisfy the information needs for
business (small local to large all international)
Multi-lingual
Multi-currency

Designed

industries

to satisfy the information needs for all

SAP ERP
Enables

a company to link their business processes

Ties

together disparate business functions

(integrated business solution)
Helps

the organization run smoothly

Real-time
Scalable

environment

and flexible

Workplace demand
Monster.com
Over 250 listings for accountants with ERP knowledge /
experience
Robert Half International
Over 100 listings within California for accountants with ERP
knowledge / experience

Workplace demand
Selected

duties & qualifications from position listings

Maintain proper vendor master files in SAP by overseeing vendor

set up and performing maintenance, deactivation, etc. as needed
on a regular basis.
Review bills of materials and routings for completeness and
usability in an enterprise resource planning (ERP) system
Experience with a major ERP System
Proficiency with ERP System such as Oracle or SAP is required

Workplace demand
Selected

duties & qualifications from position

listings
Complete asset transfers and asset disposals in SAP
Calculate depreciation expense in SAP on existing assets
Conduct fixed asset audit program at plants including. .
.update records in SAP
Set up approved capital projects in SAP
Capitalize new assets in SAP system

SAP Architecture
Client/Server

Environment

Client hardware/software environment that can make a

request for services for a central repository of resources
Server hardware/software combination that can provide
services to a group of clients in a controlled environment

SAP Architecture
Three

Tier Structure

GUI: Graphical User Interface or Web Interface

Application Server: One or more, help distribute work load
Database Server: One single data repository

SAP Architecture
PCs, Laptops, etc.

Browser Client

Network
Web Server
Internet
Transaction
Server

Presentation
Application

Application
Servers

Database
Database

SAP Enterprise System

SD
MM

Materials
Mgmt.

PP
SM
Service
Mgmt.

Sales and
Distribution

Production
Planning

QM
Quality
Mgmt.

PM

FI
Financial
Accounting

CO
Controlling

SAP ECC 6.04

Client / Server
Integrated Business
Solution
WF

Plant Maintenance

HR
Human
Resources

IS
Industry
Solutions

AM
Fixed Assets
Mgmt. EC

PS

Enterprise
Controlling

Project
System

Workflow

Components of SAP
Finance

Logistics
Purchasing
Sales
Production
Project System

Human Resources
Personnel Management
Payroll

Reporting Requirements
Financial
Financial
Accounting
Accounting

Management
Management
Accounting
Accounting

Income & Expenditure

Balance Sheet
Cash Flow

Department Costs
Project costs
Costs v plan

SAP Finance Modules

FI
FI

Financial Accounting

CO
CO

External Accounting
Financial Statements
Legal Requirements
Standards

Controlling
Internal Accounting
Cost Reporting
Management
Flexible

Accounting

Components of Controlling
CO
CO
OM
OM

CO
CO
CEL
CEL

EC
EC
PCA
PCA

Overhead Cost Controlling

How high are the costs of organizational activities?
Are they within budget?
Cost & Revenue Element Accounting
What costs occur within our organization?

Profit Center Accounting

How profitable are the enterprise areas?

SAP Cost Objects

Used to track where costs occur within the organization

CO & PS
Controlling & Project
System

Balance
Sheet
Cost Objects

Internal
Orders

Cost
Centers

Project
System
WBS
Elements

Profit
Centers

Cost Centers
An organizational unit within SAP to which costs (and income) can
be assigned
Six digit number e.g. 252000
Used to track costs of departments/major activities

Cost Elements
Used to collect and summarize costs according to classification
Five digit number e.g. 50010
Main ranges:
40000 to 49999 External Income
50000 to 69999 External Costs
70000 to 74999 Internal Income
75000 to 75999 Internal Costs
80000 to 89999 Secondary Transfers

Internal Orders
Cost object used to monitor costs at a detailed level
Eight digit number e.g. 95000001
Linked to cost centre provides sub-analysis
Simplifies cost centre structure
Used to track costs of individual activities e.g. projects.