SAP Technology

Vishal Kumar Jaiswal | 3rd B.Tech.(Information Technology)

What is SAP?• A collection of software that performs

standard business functions for

corporations.

• Incorporates the concepts of ERP and

Business Process Reengineering(BPR)

into an integrated solution for

business applications.

Areas covered….• Manufacturing

• Accounting

• Financial

• Management

• Human Resource

History In June 1972, Five former IBM

engineers founded Systems,

Applications and Products in Data

Processing as a private partnership

under the German Civil Code.

Timeline History 1973:SAP R/1

1976:SAP R/2

1992:SAP R/3

2000:Under the name mySAP,released

ECC(Enterprise Core Component).

Transitions of ERP

Cloud Computing

Client Server Architecture

Mainframe Computing

SAP in India

SAP Modules……….

Financial Accounting

Financial Supply Chain Management

ControllingMaterials

Management

Sales and Distribution

Logistics Execution

Production Planning

Quality Management

Plant Maintenance

Project SystemHuman

Resources

1.Financial Accounting• Designed to capture organizations

business transactions to satisfy

external reporting.

• Local legal considerations are pre-

delivered with the system.

• Ability to manage and report on

multiple companies, multiple countries

and multiple currencies is part of

standard functionality

Financial

Accounting(continued……)• Integration with sales and distribution ,

purchasing and materials

management allows for the ability to

select any financial transaction and

“Drill Down” to the originating

transaction whether it is a purchase

order , sales order or material

movement

2.Financial Supply Chain

ManagementCash Management

• Compare incoming cash to outgoing cash

• Liquidity planar to gain a clear picture of financial resources

Dispute Management

• Business partner

• Outstanding billing and accounting documents

• Collections strategies defined in collections management

Credit Management

• Credit master data

• Credit information and business partner rating

• Score and credit limit calculation and credit limit check(credit rules engine)

• Credit information and credit decisions

3.Controlling• Consists of all master data,

configuration, and reporting required

to analyze both spend and revenues ,

both within and across organization.

• Provide a view of profitability beyond

that of basic financial reporting

Subcomponents of

Controlling

Controlling

CO-PC CO-PCA CO-PA CO-OM

CO-OM-CCA

CO-OM-OPA

CO-OM-CEL

CO-OM-ABC

4.Materials Management• Consists of all master data, system

configuration, and transactions to

complete the procure to pay process

• Process map spans from MRP

generated procurement proposals

through final invoice receipt and

verification.

Components of SAP MM• Vendor master and material master

data

• Consumption based planning

• Purchasing

• Inventory Management

• Evaluation of materials

• Invoice verification

5.Sales and Distribution• Includes Customer master and

material master data , Sales order ,

Deliveries , Pricing , Billing , Credit

Management

Components of SAP SD• master data

• Sales support

• Pendulum list indirect sales

• Sales

• Shipping and transportation

Components of SAP

SD(continued….)• Credit Management

• Foreign Trade/customs

• Sales information System

• Billing

• Empties Management

6.Logistics Execution(SAP LE)• Covers areas of warehouse

management and inbound receiving

and outbound shipping processing

Warehouse

Management(WM)• Manages stock down to the bin level ,

or to the physical coordinates within

your warehouse..

• Picking and put away strategy.

• Additional level of stock location detail

than IM.

Inventory Management(IM)• Maintains stock quantities at the

storage location level , which is

typically an area of your warehouse or

a building on your company’s

campus.

7.SAP Logistics Execution

Create delivery document(s) for all sales order

that are due for delivery

Print pick tickets for

deliveries with optional wave

picking functionality

Pack Delivery

Print Relevant Documents(Bill

of landing , pack list)

Issue Inventory from stock for

delivery

Optional track delivery

8.Production PlanningIncludes:

Material master , Bill of Material ,

routing and work center data

Sales and production plan

Long Term Planning

Demand Management

Production

Planning(continued….)Includes:

Material Requirements Planning

Capacity Planning

Production Orders

KANBAN

9.Quality Management(QM) Assures the products meet stringent

regulatory standards , are safe and

uniform , meet company product

specifications

Throughly integrated into the

manufacturing process

Quality Management(QM)• Includes:

planning

inspection

certificates

notifications

control

Test equipment management

10.Project System Provides tools to track milestones ,

costs and resources.

Utilizes personnel records from HR ,

rolls costs into controlling and links to

materials or customers in the logistics

modules.

11.Human Resources Consists of all master data , system

configuration , and transactions to

complete the hire to retire(or , as

some say, fire) process

Human Resources

Recruit HireRecord Time and

ExpensesPay via payroll

process

Personnel development

Maintain benefits plan

Maintain personal data and family

member/dependent information

Recording education

Change of Pay Change of position Leave of absence Termination

SAP Technology

NetWeaver Basis and Security

Development(ABAP and JAVA)

Exchange infrastructure(XI)

NETWEAVER

“Netweaver is a combination of the underlying

SAP kernel(what I like to call the SAP OS layer ,

basically the WEB AS) and any SAP software

tool for business enablement.”

SAP BASIS AND SECURITY

TECHNOLOGY

‘BASIS’ refers to application layer of the SAP

System . Includes:

Managing Database

Transporting development and

configuration objects from one SAP system

to another

Monitoring System Performance

SAP BASIS AND SECURITY

TECHNOLOGY(Continued….)

The user accounts defined for users in the

SAP Runtime Environment are secured by

roles that grant authorizations to them.

SAP authorizations control access to

transactions, or what can be performed

within a specific business process step.

ABAP and JAVA Used for building solid-state business

application solutions in the SAP run

environment

SAP Extra Infrastructure

Technology(XI) technology Can be equated to a message broker.

Used for SAP to SAP messages or for

SAP to non-SAP messages.

Also known as SAP process

integration(SAP PI)

SAP Advantages Integration

Efficiency

Cost Reduction

Less personnel

Accuracy

SAP Disadvantages Expensive

Not very flexible

Vishal Kumar Jaiswal | 3rd B.Tech.(I T )