History of SAP

Systems Applications and Products in Data Processing German : Systeme, Anwendungen, Produkte in der Datenverarbeitung Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira Re named in 1977 Before 1977 : Systems Analysis and Program Development (German : Systemanalyse und Programmentwicklung) SAP is both the name of the Company as well as their ERP Product SAP system comprises of a number of fully integrated modules, which covers virtually every aspect of the business Three systems developed : R/1, R/2, R/3
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3 Tier Client / Server Architecture

The SAP R/3 architecture is based on a 3-tier client/server principle Presentation Server Application Server Database Server Dedicated Servers are linked by Communication Networks Perform tasks without sacrificing data integration and processes within the system, as a whole

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SAP R/3 System Architecture

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SAP Modules
SD Sales and Distribution MM Materials Management PP Production Planning FI Financial Accounting

SD MM PP

FI CO AM

CO Controlling AM Asset Management

SAP R/3
QM Quality Management

QM PM WM PS WF

HR

HR Human Resources WF Workflow

PM Plant Maintenance WM Warehouse Management

PS Project System

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Procurement Process
Outline Agreement Purchase Requisition Demand Scheduling Agreement

Vendor

Accounts Payable
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Invoice Verification

Goods Receipt & Inventory Mgmt.

Purchase Order
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BASIC DATA

Materials Management
Vendor/one-time customer Purchasing info record Service specifications Workflow Texts Mail Communication Classification Documents Conditions RFQ/Quotation
Material/service Price comparisons Price comparison list

PURCHASING

Purchasing information system Vendor evaluation

Material Special stock Batch

Purchase requisition
MRP Direct requisition Release procedures

SD PP PM

Third-party order Requirements

Purchasing

Service/ Spare Parts Service / parts lot Inspection QM spare G/L accounts Cash management and forecast Fixed assets Cost center / Budget Project

Purchase orders Outline agreements Scheduling agreements

FI AM CO PS

INVENTORY MANAGEMENT
Goods receipt/issue Transfer posting Quantities and values Physical inventory Storage bins

INVOICE VERIFICATION
Check and post Price update

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Organizational Structures

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Organizational Structures: Client

The client is a unit within an SAP R/3 system that is selfcontained both in legal and organizational terms and in terms of data, with separate master records and an independent set of tables. From a business viewpoint, the client represents a corporate group, for example. Client: 3 numerical digits

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Organizational Structures: Company

is the smallest organizational unit of external accounting for which a complete, self-contained bookkeeping system can be replicated. A company code represents an independent unit producing its own balance sheet, for example, a company within a corporate group (client). Company code = 4 characters
The company

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Organizational Structures: Plant

Lowest valuation area Organizational level where Material Requirements (MRP) runs Generally used to describe a production site, a distribution center or centralized warehouse May be a physical or logical unit

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Organizational Structures: Valuation Area

The valuation area determines at which level a material is valuated (inventory value is established) SAP R/3 allows valuation at the company code or plant level, but recommends valuation area be set at the plant level. Means each plant can have its own material prices and account determination

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Organizational Structures: Storage Location

Subdivision of a plant Where materials are managed (inventory management)
Raw Materials Maintenance, Repair, and Other (MRO) Finished Product

May be a physical or logical unit

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Organizational Structures: Purchasing Organizations

An organizational unit responsible for procuring materials or services for one or more plants and for negotiating general conditions of purchase with vendors. The purchasing organization assumes legal responsibility for all external purchase transactions.

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Purchasing organization
purchasing organization purchasing group MG 0, 3

material group

purchasing group MG 1, 4 purchasing group MG 2, 5 purchasing group MG 6 plant purchasing group MG 7, 8, 9

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Organizational Structures: Purchasing Organization Groups

The purchasing organization is further subdivided into purchasing groups (buyer groups), which are responsible for day-to-day buying activities. A purchasing group can also act for several purchasing organizations. A purchasing group can be defined by line products (Frame, Engine, Tires)

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Materials Management Overview

What is Materials Management ?

Procurement

MM Master Data

Inventory Management

Requisition Planning Purchase Requisitions RFQs Contracts Purchase Orders

Receiving Materials Transfer Posting/ Goods Issue Vendors Physical Inventory (Raw Material, Semi Information Records Finished Goods, Finished Goods)

The Material Management module comprises of procurement and the inventory management functions .
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Logging into SAP ERP

Double Click

Select Server {Double Click}

LOGON ICON

LOGON PAD
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Enter Client, User Name and Password

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SAP Standard Screen

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Menu Bar Command Field Title Bar Standard Tool Bar Application Tool Bar

SAP Standard Screen Components

Status Bar
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The Module MM Main Functions

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MM interdependencies to other modules

Logistics
PP production planning MM material master purchasing requirements plan. QM quality management inventory mgmt. invoice verification PM plant maintenance SD sales and distrib.

FI financial acc.
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CO controlling

AM fixed assets mgmt.

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