SAP- ERP

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What is ERP?
An Enterprise Resource Planning system is a packaged business software system that allows a company to:

Automate and integrate the majority of its business processes Share common data and practices across the entire enterprise Produce and access information in a realtime environment

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What is SAP

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What is S A P
SAP Stands for Systems Applications and Products

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About SAP
Systems, Applications, Products...
Founded in Walldorf, Germany in 1972

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SAP Facts & Figures

World Leader in enterprise business software solutions

4th

largest independent software supplier in the world Largest ERP vendor More than 2,500,000 users in over 50 countries Over 21,000 R/3 installations worldwide An average of 25% of revenue invested in R&D www.sapendusers.com High customer and employee satisfaction

Why SAP is Unique

Highly integrated Comprehensive functionality Complex data structures Availability of data Single point of entry On-line data capture and real-time update Requires strong application knowledge Causes personnel and organizational

structure changes Causes business process changes

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SAP Business Partners

Business Development Partners Logo and Implementation Partners

Platform Partners

Technology Partners

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Support & Services

SAP Employees Logo/Implementation Partners Competence Centers OSS
Online Service System over 18,330 worldwide over 10,000 consultants trained in SAP worldwide over 400 different SAP training courses

Training

( 24 hours a day 7 days a week )

Hotline

Remote Support Early Watch

User Groups

Computing Center Management System

CCMS

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01 Raw Materials, Mining Agriculture 02 Oil and Gas 03 Chemical 04 Pharmaceutical 05 Building Materials, Clay, Glass 06 Building and Heavy Construction 07 Primary Metal, Metal Products, Steel 08 Industrial and Commercial Machinery 09 Automotive 10 Ship, Aerospace & Train Construction 11 Transportation Services, Tourism 12 Electronic/Optic Equip., Common Devices 13 Wood and Paper 14 Furniture

Industries Served By SAP

15 16 Consumer Packaged Goods - Food Consumer Packaged Goods Non-Food 17 Clothing and Textiles 18 Retail and Wholesale 19 Communication Services, Media 20 Storage, Distribution, Shipping 21 Utilities 22 Financial Services, Banks and Insurance 23 Government, Public Admin. and Services 24 Museums and Associations 25 Healthcare and Hospitals 26 Educational Institutions, Unis, Research 27 Consulting, Software 28 Services

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SAP - The Product

Original product was SAP R/2 on the

mainframe introduced in 1972 SAP R/3 introduced for smaller platforms in 1992 Developed using a fourth generation proprietary language developed by SAP called ABAP/4 Major SAP versions:
2.2h 3.0d, 3.0e, 3.0f , 3.1g, 3.1h, 3,1i 4.0b, 4.5b, 4.6b, 4.6c, 4.7 5.0, 6.0
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SAP - Enterprise System

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SAP - Client/Server Environment

Client Software/hardware combination that can make a request for services from a central repository of resources Server Software/hardware combination that can provide services to a group of clients in a controlled environment
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SAP - Three-Tier SAP Structure

GUI Graphical User Interface or Web Interface Application server (one or many) Database server (one single location)

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SAP Components
SAP R/3 is comprised of modules categorized in three

core functional areas: Financial Human Resources Logistics Special software packages on top of R/3, targeted to specialized vertical industries: Industry Solutions (IS) Special set of modules positioned between the technical and functional areas of the system: Cross Application (CA) Modules Workflow (WF)

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Financial Accounting
q q

FI

q q q q

General Ledger Accounts Receivable Accounts Payable Tax and Financial Reports Special Purpose Ledger Legal Consolidations

Financial Applications. . . . . . . .
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Controlling
q q

CO

q q q q

Cost Center Accounting Profit Center Accounting Product Cost Controlling Profitability Analysis Activity Cost Management Internal Orders

Financial Applications. . . . . . . .
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Fixed Asset Management

q q

Depreciation Property Values Insurance Policies Capital Investment Grants

A M

q q

Financial Applications. . . . . . . .
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Project System
q q

Project Tracking Work Breakdown Structure Budget Management Cost and Revenue Planning Networks and Resources

PS

q q q

Financial Applications. . . . . . . .
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Sales and Distribution

q q

Computer Aided Sales Quotations Sales Order Management Pricing Delivery Invoicing

SD

q q q q

Logistics Applications . . . . . . . .
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Materials Management
q q

Procurement Inventory Management Vendor Evaluation Invoice Verification Warehouse Management

M M

q q q

Logistics Applications . . . . . . . .
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Production Planning
q

PP

q q

q q

Sales & Operations Planning Demand Management Material Requirements Planning Production Activity Control Capacity Planning

Logistics Applications . . . . . . . .
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Quality Management
q q

Quality Certificates Inspection Processing Planning Tools Quality Control Quality Notifications

Q M

q q q

Logistics Applications . . . . . . . .
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Plant Maintenance
q q

Plant Maintenance Equipment and Technical Objects Preventive Maintenance Service Management Maintenance Order Management

PM

q q q

Logistics Applications . . . . . . . .
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Human Resources
q q

HR

q q q

Personnel Administration Payroll, Benefits Time Management Planning and Development Organization Management

Human Resources. . . . . . . .
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Industry Solutions
q q q

IS

q q q q q

Banks Hospitals Oil Companies Publishing Sector Telecommunications Retail Utilities Others

Industry Solutions. . . . . . . .
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Audit Cycles
Revenue Expenditure Inventory Management Fixed Assets Treasury Payroll/Personnel Business Processes Or: audits specified by your organization e.g. Cross functional, Operational
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Management Challenges
SAP Modules Three Main Functional Categories Multitude of Modules Multitude of Sub-Modules SAP Business Processes 1000+ Processes Many Audit cycles Auditors will determine how all these components interrelate in order to audit effectively Management should have continuous monitoring processes in place

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Business/SAP/Audit Process Views

Business Processes Application Level Client Environment Model Level SAP Process Model Implementati on Level SAP Software Model

SAP Modules

Audit Cycles

Organizations Audit Business Cycles

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Relationship of Audit to SAP

SAP Module Functional Categories, Modules and Components Business Cycles Audits and SAP Modules
Audit Account Balances (A/R) SAP Components
SAP Modules
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SAP Processes (Revenue)

(Financial Accounting)

Audit Business Cycles

Linking Audit Cycles to SAP Modules

Treasury Fixed Assets Expenditure Revenue Inventory Management Payroll and Personnel

SAP Module Functional Category

Financial Applications

Logistics Applications

Human Resources

Basis Component Cross Applications Industry Solutions

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BOTTOMLINE: When auditing SAP, one should not be concerned so much with which modules or sub-modules

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Thank You

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