2. SAP THE COMPANY
Established in 1972 in Germany, first customer was
ICI Germany. Now has 28 subsidiaries and 21
regional offices world-wide
Produce fully integrated financial, human resource,
manufacturing and distribution systems.
Success built on 3 products
• R/2 (Real Time Enterprise Resource Planning)
• R/3 (Up gradation of R/2)
• ECC ( ERP Central Component)
Based in Walldorf, Germany, SAP AG is a leading international supplier of
standard application software.
4. What is ECC 6.0 ERP?
Integrated computer system
Supports the entire customer and vendor life cycle
(quote to cash) (req to check)
Information is entered once and stored in one
electronic location
Provides shared access to the same data to multiple
functions and locations
5. Competitive Factors
Business in
networked companies
Three-tier
client/server
architecture
Real-time
integration Over 1,000 predefined
business processes
spanning all functional areas
Openness,
portability
Scalability,
flexibility
6. SAP R/3 supports all business processes, including
production, sales and distribution, finance and accounting,
maintenance and human resources.
$
R/3
Client / Server
ABAP/4
FI
CO
AM
PS
WF
IS
MM
HR
SD
PP
QM
PM
SAP Integration
7. SAP AG
Designed for All Types of Business
Business processes
Order
processing
Product
development
Customer
Service
Financial
Reporting
Personnel Devel-
opment
Marketing
Sales
Pro-
duction
Service Financial
Accounting
Functions
8. Highest level of customer responsiveness at lowest cost
INFORMATION FLOW
Supply Chain Optimization
CASH FLOW
Transfer
Transfer Transfer
Transfer Transfer
Transfer Transfer
Transfer
Consumer
Supplier Manufacturing Distribution Retail Outlet
The Chain from Original Supply to
Final Consumption
9. Integration in SAP
Accounting
Logistics
Controlling
Treasury
Purchase req.
commitments
(Cost center
order)
Purchase
commitments
(Cost center
order)
Actual
(preliminary)
Actual
Purchase
requisition
Purchase
order
Goods
receipt
Invoice receipt
(prelim.
posting)
Electronic
banking
Cash
management
Cash
forecast
Cash
forecast
Vendors Re-
lease
GL Cashed
checks
Payment
GL
10. SAP Logistics Integration Overview
PP
SD
SD
SD CAS Order Delivery/ Goods Invoicing SIS
entry Shipm. issue
SOP Demand MRP Production control Production
Mgt. Capacity planning
MM
PM Corrective
Maintenance
Requisi- Purchase Inventory Invoice
tion order verification
CO
FI
CO
PCA
Cash
Asset
Structure
Maintenance
History and
Reliability Analysis
QM Quality
Planning
Quality
Inspection
Quality
Control
Preventive
Maintenance
14. R/3
SD
MM
PP
QA
PM
HR
FI
CO
AM
PS
WF
IS
HR within the SAP Modular
Business Concept
HR interfaces / integration
to other SAP modules
which includes from HR to:
FI Finance Accounting
CO Controlling
MM- External Services
Logistics PM, PS, PP
AM Assets Management
SD Sales & Distribution
HR Integrated Environment
15. One of SAP’s features is the high degree of integration between
functional components. The system is able to maintain data
integrity while simultaneously updating relevent data between
components.
SAP
Human
Resource
Components
Travel
Expense Acctg.
Payroll
Cost Planning
Workforce
planning
Seminar &
Convention
Admin.
Master Data
Organization and
Planning
Personnel Cost
Planning
Time
Management
Production
Financial Accounting Cost Accounting
Plant Maintenance
HR Integrated Environment
16. Goods Issue
to Production
Purchase
Requisition
Contract
Purchase
Order
Goods Receipt
from Vendor
Material
Transfer
Receive
Vendor
Invoice
Issue
Payment
Finished
Goods
Production
Customer
Order
Delivery
Notice
Picking
Delivery to
Customer
Customer
Invoice
Credit Memo
Receive
Payment
General Ledger
Automatic Postings
Goods Issue
to Work
Order
Work Order
Settlement
17. The SAP Financial Solution
Document data base
Optical archive
Document data base
AM
Payroll
AR
AP
Inventory
HR
MM
PM
PP
AM
SD
MM
CONTROLLING
PROFIT CENTERS
COST
CENTERS
ORDERS
18. R/3 for client/server configurations link business and technical
processes to form an integrated turnkey system.
The qualities of the R/3 systems are their comprehensive
integration, shared data storage, openness, modular structure,
internationality, and applicability for all sectors of industry.
WHY SAP?
20. Integration of planning, budgeting and actual information
BUDGETING
CASH FLOW
BUDGETS &
FORECASTS
SUPPLY CHAIN
TRANSACTIONS
PERFORMANCE
MEASUREMENT
PROFITABILITY
REPORTING
FINANCIAL
ACCOUNTING
BUSINESS
PLANNING
R/3
Client / Server
ABAP/4
FI
CO
AM
PS
WF
IS
MM
HR
SD
PP
QM
PM
21. Integration within a business process
BUSINESS
PLANNING
PROCUREMENT
PRODUCTION
PLANNING INVENTORY
MANAGEMENT
SALES ORDER
PROCESSING &
DEMAND
MANAGEMENT
ASSET
MANAGEMENT
CREDIT
MANAGEMENT
PROFITABILITY
REPORTING
HUMAN
RESOURCE
MAINTENANCE
MANAGEMENT
R/3
Client / Server
ABAP/4
FI
CO
AM
PS
WF
IS
MM
HR
SD
PP
QM
PM
22. Processing Procedure
Process Order Demand
Process Order Creation
Availability Check
Process Order Release
Print Shop floor Papers
Material Withdrawal
Process Order Execution
Completion Confirmation
Inward Stock Movement
Process Order Settlement
Archive / Delete
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