sap university alliances version 2 - j. mack robinson ...€¦ · bi sap netweaver sap scm pm hr is...
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ERP and SAP – Part 2SAP University Alliances
Version 2.01
Sumantra SarkarGeorgia State University
Robinson College of Businessg8rd November, 2011
SAP Components
Logistics FinanceFinancial Accounting (“Track”)Managerial AccountingAsset Management
SAP PLMSD
MM CO
FI
Treasury
SAP SRM
SAP CRMSAP ERP
PP
QM
AM
PS
SAP R/3Client/Server
ABAPB i
SAP NetWeaver
SAP SCMPM
HR ISWFBasis
Sales & Distribution (“Sell”)Materials Management (“Buy”)
- Personnel ManagementB fitMaterials Management ( Buy )
Production Planning (“Make”)Plant MaintenanceQuality Management
- Benefits- Payroll
SAP Document Principle
• Each business transaction impacting FI writes data to the SAP database creating a uniquely numbered electronic document.
• The document number can be used to recall the transaction at a later date.
• Audit Trail ‐ contains critical and necessary information as:y• Responsible person• Date and time of the transaction• Commercial content• Commercial content
• Once written to the SAP database, a financial document (one impacting the financial position of the company) can not be deleted from the databasedatabase.
• The SAP document principle provides a solid and important framework for a strong internal control system – a requirement of law for companies that operate in the United States and in most other countriescompanies that operate in the United States and in most other countries in the world.
GL Transactions Tracking
Post Goods IssueCOGS XXXX
INV‐FG XXXXX
I i C tInvoice CustomerA/R XXXX
SALES XXXXX
5
GL Transactions Tracking
7
S_ALR_87012291 Line item journal from Accounting General Ledger Information system Document Line item journal.
Presentation Overview
• Introduction to ERP• Introduction to SAP• Sales & Distribution• Materials Management• Production Planning• Financial Accounting • Controlling• Controlling
MM Functionality
• Inventory Management• PurchasingPurchasing• MRP• Physical InventoryPhysical Inventory• Valuation• Service Master• Service Master• Invoice Verification• Product Catalogs• Product Catalogs
Procure‐To‐Pay Process
PurchaseRequisition
VendorSelection
No financial impact (FI)
RequisitionPurchase
Order
Selection
P tNotify VendorMaterials Management (MM)Amount owed isPayment received andPayment
to VendorVendor
V d
A/P XXXXBank XXXX
Materials Management (MM) and Financial Accounting (FI)
via automatic account assignment
Amount owed isassigned and transferred to
vendor account payable
Payment received and Accounts payable reduced
VendorShipment
InvoiceReceipt
GoodsReceipt
PO Receipt XXXXA/P XXXX
g
ReceiptA/P XXXX
Inventory-RM XXXXPO Receipt XXXX
GL Transactions Tracking
Receipt of GoodsInventory‐RM XXXX
PO‐Receipt XXXX
I i R i tInvoice ReceiptPO‐Receipt XXXXX
A/P XXXXX
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Presentation Overview
• Introduction to ERP• Introduction to SAP• Sales & Distribution• Materials Management• Production Planning• Financial Accounting • Controlling• Controlling
PP Functionality
• SAP divides production into multiple processes• Production Planning• Manufacturing Execution
• Discrete ManufacturingR titi M f t i• Repetitive Manufacturing
• KANBAN
• Production – Process Industries• Integrated planning tool for batch‐orientated process manufacturing• Design primarily for chemical, pharmaceutical, food and beverage industries along with batch‐oriented electronicsindustries along with batch oriented electronics
Production Planning & Execution
• Players in the Game• Strategic Planning
ForecastingSIS CO/PAg g
• CEO, COO, CIO, CFO, Controller, Marketing Di t
Sales & OperationsPlanning
Strategic Planning
Director• Detailed Planning
• Line Managers, Production
DemandManagement
MPSDetailed PlanningProduction
Scheduler, MRP Controller, Capacity
MRP
Planning
Planners• Execution
• Line Workers,
ManufacturingExecution
Order
ProcurementProcess
ManufacturingShop Floor Supervisors
OrderSettlement
Manufacturing Execution
Forecasting
• Forecasting is the foundation of a reliablefoundation of a reliable SOP
• Accurate forecasts are essential in the manufacturing sector
• Overstocked & understocked warehouses result in the same thing: aresult in the same thing: a loss in profits.
• Forecasts are ALWAYS WRONG
Forecasting
• Forecasting Models• Trend• Trend• Seasonal• Trend and Seasonal• Constant• Constant
• Selecting a ModelSelecting a Model• Automatically• Manually
Sales and Operations Planning (SOP)
• Information OriginationOrigination• Sales• Marketing• Manufacturing• Accounting• Human Resources• Purchasing
• Intra‐firm CollaborationCollaboration• Institutional Common
Sense
Material Requirement Planning (MRP)
• In MRP, the system calculates the net requirements while considering available warehouse stock andwhile considering available warehouse stock and scheduled receipts from purchasing and production
• During MRP, all levels of the bill of material are plannedg , p• The output of MRP is a detailed production and/or
purchasing plan• Detailed planning level
• Primary Functions • Monitor inventory stocksMonitor inventory stocks• Determine material needs
• Quantity• Timing• Timing
• Generate purchase or production orders
PP Master Data
• Material• Bill of Materials (BOM)ill of Materials ( OM)• Routing• Work CenterWork Center• Product Group
Bill of Materials (BOM) Bicycle Example
• List of components that make up a product or assemblyassembly
• Wheel Assembly
Seat Kit
Handle Bar y• Tire• Tube• Wheel
Pedal Assembly
ChainWheel
• Hex nut• Lock Washer• Socket Head Bolt
Brake Kit
Warranty Document
PackagingSocket Head Bolt
• Frame• Derailleur Gear Assembly
Packaging
Derailleur Gear Assembly
Routing
• Routings enable you to plan the production of materials (products)materials (products).
• Routings are used as a template for production orders and run schedulesorders and run schedules
• Routing are also used as a basis for product costing.• Series of sequential steps (operations) that must be• Series of sequential steps (operations) that must be carried out to produce a given product
• Routings contain:Routings contain: • What, Where, When, How
Work Center
• A location within a plant where value‐added work (operations or activities) are performed(operations or activities) are performed• Work Centers can represent
• People or Groups of People• Machines or Groups of MachinesMachines or Groups of Machines• Assembly Lines
• Work center used to define capacities • Labor• Machine• Output
E i i• Emissions
• Capacities used in• Capacity requirements planning (CRP)• Detailed scheduling• Costing
Presentation Overview
• Introduction to ERP• Introduction to SAP• Sales & Distribution• Materials Management• Production Planning• Financial Accounting • Controlling• Controlling
FI Integration
• Fully integrated with other SAP modules • Sales and Distribution (SD)• Sales and Distribution (SD)• Materials Management (MM)• Production Planning and Execution (PP)Production Planning and Execution (PP)• Managerial Accounting (CO)
Goal of Financial Accounting (FI)
• Financial Accounting is designed to collect the transactional data that provides a foundation for preparing the standard portfolio of reports.
• In general, these reports are primarily, but not exclusively, directed at external parties.
• Standard reports include:• Balance Sheet• Income Statement• Statement of Cash Flows
FI Reporting ‐ sample
• Balance Sheet • Presentation of an organization’s Assets, Liabilities, and Equity at a point in time• Assets: What the company owns • Liabilities: What the company owes• Equity: The difference between Assets and Liabilities
• Income Statement • Presentation of an organization’s revenues and expenses for a given period of time
(e.g. monthly, quarterly, or yearly)( g y, q y, y y)
• Statement of Cash Flows • Considers the associated changes, both inflows and outflows, that have occurred in
h bl th t i t t f ll t i i d f ti (cash – arguably the most important of all assets – over a given period of time (e.g. monthly, quarterly, or annually)
Target Audience for reports
• Internal• Executives
• External‐ Legal Authorities• Executives
• Senior Management• Administrative Staff• Employees
g‐ Banks‐ Auditors‐ Shareholders
I• Employees ‐ Insurance‐ Taxing Authorities‐ Media‐ Financial Analysts
Accountants and Audit Trails
• Audit trails allow an auditor to begin with an account balance on a financial statement and traceaccount balance on a financial statement and trace through the accounting records to the transactions that support the account balance.pp
• Or ……enables an auditor to trace individual transactions to the effected account balance(s) on a ( )financial statement.
FI Master Data
• General Ledger (G/L) Accounts • The unique combination of Company Code and Chart of Account creates a data
t ll d G l L dstorage area called a General Ledger.• The General Ledger contains a listing of the transactions effecting each account in
the Chart of Accounts and the respective account balance.• It is utilized in the preparation of financial accounting statements• It is utilized in the preparation of financial accounting statements.
• Customer and Vendor Master Data• Customer and vendor account balances are maintained in FI through fully
integrated accounts receivable and accounts payable sub‐modules.• Financial postings for customers and vendors are made directly to their respective
individual accounts and accompanied by a concurrent automatic posting to the G l L dGeneral Ledger.
Presentation Overview
• Introduction to ERP• Introduction to SAP• Sales & Distribution• Materials Management• Production Planning• Financial Accounting • Controlling• Controlling
Goal of Controlling (CO)
• Managerial Accounting – also termed Controlling – is designed to collect transactional data that provides a foundation for preparing internal reports that support decision‐making within the enterprise.
• These reports are exclusively for use within the enterprise and include:
C t t f• Cost center performance• Profit center performance• Budgets analyses
Target Audience
• ExecutivesS i M t• Senior Management
• Department ManagersManagers
• ControllersC t A t t• Cost Accountants
CO Master Data
• Statistical Key Figures • Provide the foundation for accurate and effective cost allocations between cost
bj tobjects• Utilized to support internal cost allocations involving allocations, assessments, and
distributions• Examples:• Examples:
• number of employees• square footage• minutes of computer usage
6 Hours Executive Offices
Copy CenterActivity
(20 Hours)
10 Hours MaintenanceDepartment
(20 Hours)4 Hours IT Department
CO Processes
Rent ExpenseExecutive Offices
Posting Secondary Cost Element
Debit Credit
1,500
Rent Expense
1,800Copy
Supplies Expense 1,500
Center Maintenance Department
Debit Credit
2,500
Supplies Expense
2,500
2,000
3,000Sec. Cost Element
Debit CreditLabor Expense
1,200
Information Services
2,000,