Bpi - Sap 2011

Business Process Integration I
The Rushmore Group, LLC

June 2005
SAP AG and
The Rushmore Group, LLC 2005 2
Welcome
SAP introductions
Host institution introductions
Instructor introductions
Student introductions
Course schedule
Classroom materials
Housekeeping issues
Introduction to SAP
June 2005
SAP AG and
Course Materials
Business Process Integration Slides
Business Process Integration Exercises
An Introduction to the Basics of
SAPs R/3 Client / Server
Integrated Business Solution
June 2005
SAP AG and
SAP
Systems, Applications, and Products in
Data Processing (SAP)
Name of the company
SAP AG
SAP America
Name of the software
SAP R/2 Mainframe version
SAP R/3 Client/Server version

June 2005
SAP AG and
SAP AG
Founded in Germany (1972)
Worlds third largest software provider
Worlds largest provider of Integrated
Business Solutions software
Company stock trades on the Frankfurt and
New York exchanges

June 2005
SAP AG and
SAP R/3
World-wide usage
Designed to satisfy the information needs
for business sizes (small local to large all
international)
Multi-lingual
Multi-currency
for all industries (industry solutions)

June 2005
SAP AG and
SAP R/3
Enables a company to link its business
processes
Ties together disparate business functions
(integrated business solution)
Helps the organization run smoothly
Real-time environment
Scalable and flexible

The Rushmore Group, LLC

June 2005
SAP AG and
Welcome
SAP introductions
Host institution introductions
Instructor introductions
Student introductions
Course schedule
Classroom materials
Housekeeping issues
Introduction to SAP
June 2005
SAP AG and
Course Materials
Business Process Integration Slides
Business Process Integration Exercises
An Introduction to the Basics of
SAPs R/3 Client / Server
June 2005
SAP AG and
SAP
Systems, Applications, and Products in
Data Processing (SAP)
Name of the company
SAP AG
SAP America
Name of the software
SAP R/2 Mainframe version
SAP R/3 Client/Server version

June 2005
SAP AG and
SAP AG
Founded in Germany (1972)
Worlds third largest software provider
Worlds largest provider of Integrated
Business Solutions software
Company stock trades on the Frankfurt and
New York exchanges

June 2005
SAP AG and
SAP R/3
World-wide usage
for business sizes (small local to large all
international)
Multi-lingual
Multi-currency
for all industries (industry solutions)

June 2005
SAP AG and
SAP R/3
Enables a company to link its business
processes
Ties together disparate business functions
(integrated business solution)
Helps the organization run smoothly
Real-time environment
Scalable and flexible

June 2005
SAP AG and
Integrated Business Solutions
Software Vendors
SAP
Oracle (Peoplesoft and J.D. Edwards)
Microsoft Great Plains, Axapta, Solomon
IBM
BAAN

June 2005
SAP AG and
Architecture
Central relational database (e.g., Oracle,
Informix, Microsoft SQL and many others)
Client/Server three-tiered
ERP Component Oriented towards
common identifiable business modules
(FI, MM, SD, CO, PP, HR)
Add-ons:
Customer Relationship Mgmt (CRM)
Supply Chain Mgmt (SCM)
Product Lifecycle Mgmt (PLM)

June 2005
SAP AG and
Relational Database
Tables: Defines and links thousands of
tables of information (25,000+)
Advantages
Consistent and accurate data
Common definitions for terms
Shared, but restricted usage (e.g., profiles)
Eliminates data redundancy

June 2005
SAP AG and
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
June 2005
SAP AG and
Three-Tier SAP Structure
GUI Graphical User Interface or
Web Interface
Application server (one or many)
Database server (one single location)
June 2005
SAP AG and
SAP Enterprise System
Database
Application
Presentation
Browser Client
PCs, Laptops, etc.
Network
Application
Servers
Database
Internet
Transaction
Server
Web
Server
June 2005
SAP AG and
mySAP Business Suite
SAP NetWeaver
mySAP SCM
mySAP PLM
mySAP
SRM
mySAP
CRM
mySAP
ERP
June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
mySAP ERP Modules
June 2005
SAP AG and
Business Modules
Collections of logically related transactions
within identifiable business functions
MM (Buy)
PP (Make)
SD (Sell)
FI and CO (Track)
HR

June 2005
SAP AG and
SAP R/3 Basics
Instance each install of the SAP R/3
software on an individual application server
Configurable each instance can be
distinctively configured to fit the needs and
desires of the customer (within limits)
Most of the infrastructure decisions,
including configuration decisions, occur
during project implementation

June 2005
SAP AG and
Configuration
The process of tailoring SAP software
by selecting specific functionality from a
list of those supported by the software,
very much like setting defaults (e.g.,
Word, Access)
DOES NOT involve changes to the
underlying software code

June 2005
SAP AG and
Programming Code Modifications
Changes to the delivered code
ABAP/4 Advanced Business
Application Programming (ABAP)
This should be done sparingly and
carefully as it can make migration to
new versions of the software much
more difficult

June 2005
SAP AG and
SAP R/3 Document Principle
Each business transaction that writes data
to the database creates a uniquely
numbered electronic document
Each document contains information such
as
Responsible person
Date and time of the transaction
Commercial content
Once created, a document can not be
deleted from the database

June 2005
SAP AG and
Review
SAP and SAP R/3
Architecture
Client/Server Software
Relational Database
SAP R/3 Modules
Configurable Software
Programming Code Modifications
Be Careful!!
SAP R/3 Document Principle

Unit 1
Business Processes,
Integration, and Configuration
in the SAP R/3 Environment
June 2005
SAP AG and
Two Differing Learning Approaches
Standard SAP training
Level 1: Introductory
Level 2: Business processes
Level 3: Configuration
Our Approach
Cross functional
Understand business processes and their
relationships to SAP's organizational structure
Highlight integration/configuration!!
June 2005
SAP AG and
Learning by Creating a Model Business
Understanding business processes and
their integrative nature
Understanding SAP organizational
structures
Combining business processes and SAP
organizational structure (i.e., configuration)
Test the newly configured system
View system outputs - statistics, reports,
and graphics
June 2005
SAP AG and
Pen Incorporated
Start-up company in the promotional pen
company
Initially buys and re-sells different lines of
promotion pens
Sells to both wholesale and retail procure
and distribute
Later acquires a production facility to
manufacture its own product produce
and distribute
SAP R/3 and
Business Processes
- Overview -

June 2005
SAP AG and
Pen Incorporated Procure for Sales Order
Pre-Sales
Activity
Sales
Order
Delivery Billing
General
Ledger
Accounts
Purchase
Requisition
Purchase
Order
Goods
Receipt
In
Inventory
Plant or
Warehouse
Invoice
Receipt
Availability
Check
NO
YES
Goods to
Delivery
Goods from
Purchase Order
Inventory
Postings
Accounts
Receivable
Accounts
Payable
June 2005
SAP AG and
Pen Incorporated Produce for Sales Order
Pre-Sales
Activity
Sales
Order
Delivery Billing
Planned
Order
Production
Order
Completion Confirmation
In
Inventory
Plant or
Warehouse
Availability
Check
NO
YES
Goods Issued
to Delivery
Goods from
Production Order
General
Ledger
Accounts
Inventory
Postings
Accounts
Receivable
Accounts
Payable
June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Logistics
Materials Management (MM)
Sales and Distribution (SD)
Production Planning (PP)
Quality Management (QM)
Plant Maintenance (PM)
Service Management (SM)
June 2005
SAP AG and
Accounting and Finance
Financial Accounting (FI)
Controlling (CO)
Enterprise Controlling (EC)
Fixed Asset Management (AM)
Project Systems (PS)

June 2005
SAP AG and
Human Resources
Human Resources (HR)
June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Components of Materials Management
Materials
Management
(MM)
Logistics
Invoice
Verification
Material
Master
Physical
Inventory
Valuation
MRP
Service
Entry
Sheet
Service
Master
Product
Catalog
Purchasing
Inventory
Mgmt.
Foreign
Trade/
Customs
June 2005
SAP AG and
Materials Management (MM) Integration
Procurement Process
(Procure-to-Pay)
Purchase
Requisition
Payment
to Vendor
Notify
Vendor
Vendor
Shipment
Invoice
Receipt
Goods
Receipt
Purchase
Order
June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Components of Sales and Distribution
Sales and
Distribution
(SD)
Sales
Support
Sales
Credit
Mgmt.
Shipping
Transport
Billing
Foreign
Trade
Sales
Information
System
Master
Data
June 2005
SAP AG and
Sales Order Process
(Order-to-Cash)
Integration
Sales Order
Entry
Post Goods
Issue
Invoice
Customer
Pick
Materials
Receipt of
Customer Payment
Pack
Materials
Check
Availability
June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Components of Financial Accounting
Financial
Accounting
(FI)
Accounts
Receivable
Accounts
Payable
Special
Purpose
Ledger
Fixed
Assets
Banks
General
Ledger
June 2005
SAP AG and
Procurement Process
(Procure-to-Pay)
Purchase
Requisition
Payment
to Vendor
Notify
Vendor
Vendor
Shipment
Invoice
Receipt
Goods
Receipt
Purchase
Order
June 2005
SAP AG and
Sales Order Process
(Order-to-Cash)
Integration
Sales Order
Entry
Post Goods
Issue
Invoice
Customer
Pick
Materials
Receipt of
Customer Payment
Pack
Materials
Check
Availability
SAP R/3 Configuration
- Overview -
June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Business Process Integration
The Stool
Components
Organizational Data
Master Data
Rules
Transactions
June 2005
SAP AG and
R
u
l
e
s

FI
MM
SD
FI SD
MM
June 2005
SAP AG and
Organizational Data
A hierarchy in which the organizational
units in an enterprise are arranged
according to tasks and functions
Are static data and are rarely changed
The definition of organization units is a
fundamental step, it is a critical factor in
how the company will be structured

June 2005
SAP AG and
Master Data
Master data is relatively fixed
Material master data
Vendor master data
Purchasing information record
General Ledger master data
Before making the master data
configurations, you must have completely
defined the organizational structures

June 2005
SAP AG and
Rules
Defines the parameters for Master Data
and Transactions
Determines functionality for Master Data
and Transactions
Relatively fixed
Changes as policy changes
June 2005
SAP AG and
Transaction Data
Includes internal and external exchanges
that describe business activities
Unlike master data, aggregate
transactional data is dynamic each
transaction is unique

June 2005
SAP AG and
Functional Areas
Where and When
Business Process Integration II
Controlling (CO)
Production Planning (PP)
Unit 2
The Basics
- An Introduction to Accessing
and Navigating the SAP R/3 System -

June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Unit 2
Overview
Logging on
SAP R/3 screens
Basics of data entry
Working with multiple sessions
Reporting
On-line help and system messages
Setting user defaults
Logging off
June 2005
SAP AG and
SAP R/3 System Standard Features
Logging on
SAP R/3 screens
Reporting
Logging off
June 2005
SAP AG and
Logging On - SAP R/3 Initial Screens
June 2005
SAP AG and
Logging On - The Client
This is a numeric field
This number defines a
whole business entity

June 2005
SAP AG and
Logging On - User
Enter the name of
the SAP user
Users of SAP system
are client-specific
User identification on
one client will only
allow access to that
client on that server
June 2005
SAP AG and
Logging On - Password Rules
Letters
Numbers
Easy to remember
3-8 Characters long
No 3 Characters can
be the same
Do not start with a ?
or an !
Do not use previous
5 passwords

June 2005
SAP AG and
Logging On - Language
SAP supports
multi-national
character sets and
languages on the
same system, at
the same time
Default languages
are English and
German

June 2005
SAP AG and
Logging On - Data Record
Valid Valid
Client User Password
From To
400 STEVE ******** 1/1/2000 12/21/2000
400 BOB ******** 1/1/2000 12/21/2000
400 JERRY ******** 1/1/2000 12/21/2000
410 STEVE ******** 1/1/2005 12/31/2008
410 BOB ******** 1/1/2005 12/31/2008
410 JERRY ******** 1/1/2005 12/31/2008
Table
June 2005
SAP AG and
SAP R/3 System - Standard Features
Logging On
SAP R/3 Screens
Basics of Data Entry
Working with Multiple Sessions
Reporting
On-line Help and System Messages
Setting User Defaults
Logging Off
June 2005
SAP AG and
SAP R/3 Screens - The Topics
Easy Access desktop
System menus
System navigation
Transaction name
Transaction icons
Transaction work area
Status messages

June 2005
SAP AG and
SAP R/3 Screens - Easy Access Desktop
System Menus
Transaction
Name
Transaction
Icons
Transaction
Work Area
Status Messages
System
Navigation
June 2005
SAP AG and
SAP R/3 Screens - Easy Access Desktop
Favorites
Folder and
Sub-Folder
Transactions
June 2005
SAP AG and
SAP R/3 Screens - System Menus
June 2005
SAP AG and
SAP R/3 Screens - System Navigation
June 2005
SAP AG and
SAP R/3 Screens - Transaction Name
June 2005
SAP AG and
SAP R/3 Screens - Transaction Name
June 2005
SAP AG and
SAP R/3 Screens - Transaction Icons
Screen or view dependant
(e.g. materials master will differ from sales order
entry will differ from the main menu)
June 2005
SAP AG and
SAP R/3 Screens - Transaction Work Area
June 2005
SAP AG and
SAP R/3 Screens - Status Messages
System Message
System Information
June 2005
SAP AG and
SAP R/3 Transaction Screen
Tabs
Header
Line Item
Line Item
Detail
June 2005
SAP AG and
SAP R/3 Master Data Screen
Tabs
June 2005
SAP AG and
Logging on
SAP R/3 screens
Reporting
Logging off
June 2005
SAP AG and
Using menus
Using transaction codes
System > status
Using /n
Multiple sessions
Using /o

June 2005
SAP AG and
Types of entry fields
Moving between fields
Radio buttons and check boxes
Possible entry fields
Match-codes
Saving data
Canceling data

June 2005
SAP AG and
Cancel
Check Box
Pull Down
Entry (Input) Field Tab
Save
June 2005
SAP AG and
There are three types of entry fields:
Required
Default entry
Optional entry field
June 2005
SAP AG and
Logging on
SAP R/3 screens
Reporting
Logging off
June 2005
SAP AG and
Opens another session
June 2005
SAP AG and
An SAP session is
a window in which
the user may
perform a particular
task
Users may have up
to nine sessions
open at one time
June 2005
SAP AG and
Logging on
SAP R/3 screens
Reporting
Logging off
June 2005
SAP AG and
Reporting
Three basic steps to running a report
Access the report
Enter selection criteria
Execute the report

June 2005
SAP AG and
Reporting
Access Selection
Execution
June 2005
SAP AG and
Logging on
SAP R/3 screens
Reporting
Logging off
June 2005
SAP AG and
On-line Help
June 2005
SAP AG and
On-line Help
Help on screen fields - F1
Extended help
Reference information
Technical information
Displaying possible entries - F4
Using the Help menu
Extended help
R/3 library
Getting started
June 2005
SAP AG and
F1 - Key
F4 - Key
On-line Help
June 2005
SAP AG and
System Messages
E = Error
An invalid entry has been made
The cursor moves to the field where the
error has occurred
W = Warning
A possible error has been made
The user can continue without changing
I = Information
Feedback from the system
June 2005
SAP AG and
Logging on
SAP R/3 screens
Reporting
Logging off
June 2005
SAP AG and
Setting User Defaults
June 2005
SAP AG and
Logging on
SAP R/3 screens
Reporting
Logging off
June 2005
SAP AG and
Logging Off
System > logoff
Exit button
Control box
For security purposes it is important to log off SAP
whenever you leave your PC. Your user name is
linked with all transactions you perform providing an
audit trail.
June 2005
SAP AG and
Sales Order
Entry
Check
Availability
Procurement
Process
Pick
Materials
Purchase
Requisition
Purchase
Order
Goods
Receipt
Invoice
Receipt
Payment
to Vendor
Post Goods
Issue
Invoice
Customer
Receipt of
Payment
BPI I
Exercise Roadmap
Run MRP
Sales Process Exercise
Part 1
Order-to-Cash
June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Sales Order Process
(Order-to-Cash)
Integration
Sales Order
Entry
Post Goods
Issue
Invoice
Customer
Pick
Materials
Receipt of
Customer Payment
Pack
Materials
Check
Availability
Procurement Process
Exercise
Procure-To-Pay
June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Procurement Process
(Procure-to-Pay)
Purchase
Requisition
Payment
to Vendor
Notify
Vendor
Vendor
Shipment
Invoice
Receipt
Goods
Receipt
Purchase
Order
3-
Way
Matc
h
Sales Process Exercise
Part 2
Order-to-Cash
June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Sales Order Process
(Order-to-Cash)
Integration
Sales Order
Entry
Post Goods
Issue
Invoice
Customer
Pick
Materials
Receipt of
Customer Payment
Pack
Materials
Check
Availability
Financial and Managerial
Accounting
(FI and CO)

- Overview -
Unit 3
June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
Financial Accounting (FI) Controlling (CO)
June 2005
SAP AG and
Unit 3, Part 1
Overview
Goals and Objectives
Target Audience
Components
Managerial Accounting (CO)
Target Audience
Components
Comparisons and Relationships
Financial Accounting (FI) Controlling (CO)
June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Financial accounting is designed to collect
all of the data needed to support the
preparation of financial statements for
external users

June 2005
SAP AG and
Target Audience
Internal
Executives
Senior Management
Accounts
Administration Staff
Employees

External
Legal Authorities
Banks
Auditors
Shareholders
Insurance
Taxing Authorities
Media
Financial Analysts

June 2005
SAP AG and
Components of Financial Accounting
Financial
Accounting
(FI)
Accounts
Receivable
Accounts
Payable
Special
Purpose
Ledger
Fixed
Assets
Banks
General
Ledger
June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
Controlling (CO)
June 2005
SAP AG and
Managerial accounting is designed to
collect data for the preparation and
analysis of reports for use by internal users

Controlling (CO)
June 2005
SAP AG and
Controlling (CO)
Target Audience
Executives
Senior Management
Department Managers
Controllers
Cost Accountants

June 2005
SAP AG and
Components of Managerial Accounting
Controlling (CO)
Controlling
(CO)
Cost
Element
Acct
Cost
Center
Acct
Product
Cost
Controlling
Internal
Orders
Activity
Based
Costing
Profit
Center
Acct
Profitability
Analysis
June 2005
SAP AG and
Comparison
Managerial Accounting
Cost Center Accounting
Profit Center Accounting
Product Costing
Profitability Analysis
Different Valuations
Flexibility

Financial Accounting
External Accounting
Balance Sheet
Profit & Loss Statement
Legal Requirements
Standards
Controlling (CO) Financial Accounting (FI)
June 2005
SAP AG and
Comparative Reporting
External
Reporting
Managerial Accounting (CO)
Product
Costs
Reports
Internal
Reporting
Cost
Center
Reports
Profit
Center
Reports
Profit
Margin
Retained
Earnings
Report
Liquidity
Calculation
Income
Statement
Balance
Sheet
June 2005
SAP AG and
Income Statement Bal. Sheet

Financial Accounting
(FI) Transaction
Document
Amount
G/L Account #
Cost Center
1900012432

(CO) Transaction
Document
Cost Center
Cost Element
20000657

Controlling
100 100
Bank Supplies Exp.
Cost Center
100
Interrelated and
Closely Connected
- The Basics -

June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Unit 3, Part 2
Overview
General Ledger
Chart of Accounts
Balance Sheet
Assets
Liabilities
Equity
Income Statement
Revenues
Expenses
June 2005
SAP AG and
General Ledger
The General Ledger provides a complete
record of all "acceptable" business
transactions from the viewpoint of an
accountant
An acceptable business transaction has
the following traits
Affects the financial position of the entity
Measurable in a currency
Affects at least two accounts
Assets = Liabilities + Equity
Debits = Credits

June 2005
SAP AG and
Chart of Accounts
The foundation for the General Ledger is
the Chart of Accounts
A Chart of Accounts contains a complete
list of all of the accounts utilized in the
General Ledger for a given company
Financial accounting reports are prepared
from the balances contained in the General
Ledgers Chart of Accounts
June 2005
SAP AG and
Chart of Accounts
(continued)
There are five types of accounts contained
in a Chart of Accounts
Assets
Liabilities
Equity
Revenues
Expenses
There are two primary accounting reports
prepared from the General Ledger Chart of
Accounts
Balance Sheet
Income Statement
June 2005
SAP AG and
Balance Sheet
Assets
Things of value that a company owns or
controls that accountants have agreed to
measure in monetary terms.
Examples of these accounts include:
Cash
Accounts receivables
Plant and equipment
Inventory

June 2005
SAP AG and
Balance Sheet
Liabilities
Things that a company owes or must
provide services in order to settle that
accountants have agreed to measure in
monetary terms.
Examples of these accounts include:
Accounts payable
Notes payable
Bonds payable
Unearned revenue

June 2005
SAP AG and
Balance Sheet
Equity
Equity is simply the mathematical
difference between assets and liabilities.
Includes the monetary amounts collected
with respect to all preferred and common
stock transactions, the aggregate net
income reported since organization of the
company, and a reduction for dividends
that have been paid to stockholders.
June 2005
SAP AG and

Balance Sheet
June 2005
SAP AG and
Income Statement
Revenues
The monetary amounts collected from
customers in settlement for goods
purchased from our company or services
rendered by our firm to them during the
current fiscal year.

June 2005
SAP AG and
Income Statement
Expenses
The monetary amounts paid to vendors in
settlement for goods purchased by our
company or services rendered to our firm
by other companies during the current
fiscal year.

June 2005
SAP AG and

Income Statement

- Organizational Structures -

June 2005
SAP AG and
June 2005
SAP AG and
Organizational Data
June 2005
SAP AG and
Unit 3, Part 3
Overview
Organizational Structures
Client
Company
Chart of accounts
Company code
Credit control area
Financial Accounting (FI) Integration
June 2005
SAP AG and
Client
Highest hierarchical level in an SAP
environment
A complete database containing all the
tables necessary for creating a fully
integrated information system
Master records are created at the client
level
June 2005
SAP AG and
Client
June 2005
SAP AG and
Company
Consolidated financial statements are
created at the company level
A company can include one or more
company codes
All company codes must use the same
chart of accounts and fiscal year
Company is not required in the definition of
an enterprise (optional)
June 2005
SAP AG and
Client
Company
June 2005
SAP AG and
Company Code
A legally independent entity
The smallest organizational unit for which
accounting can be carried out
Business transactions are processed at
this level
Accounts are managed at this level
Legal financial statements, such as the
balance sheet and the income statement,
are generated at this level using the
General Ledger balances

June 2005
SAP AG and
Client
Company
Company
Code
June 2005
SAP AG and
Chart of Accounts
A listing of the accounts (assets, liabilities,
equity, revenues, and expenses) that are
contained in the General Ledger
A chart of accounts must be assigned to
every company code in order to create the
General Ledger for that company
Several company codes can use the same
chart of accounts
June 2005
SAP AG and
Company
Code 010
Company
Code 038
Company
Code 110
Company
Code 117
United States
Chart of
Accounts
Canadian
Chart of
Accounts
June 2005
SAP AG and
Client
Company
Chart of
Accounts
Company
Code
June 2005
SAP AG and
Fiscal Year Variant
Specifies the accounting fiscal year for
reporting purposes
Special periods are created to aid in the
quarterly or year-end adjusting process
completed prior to preparing financial
statements
A single fiscal year variant is assigned to
each company code

June 2005
SAP AG and
Client
Company
Chart of
Accounts
Fiscal Year
Variant
Company
Code
June 2005
SAP AG and
Credit Control Area
An organizational unit or area of
responsibility created to control customer
credit limits
A company code is assigned to one and
only one credit control area
Multiple company codes can be assigned
to one credit control area
June 2005
SAP AG and
Client
Company
Chart of
Accounts
Company
Code
Fiscal Year
Variant
Credit Control
Area
June 2005
SAP AG and
Client
Company
Chart of
Accounts
Company
Code
Fiscal Year
Variant
Credit Control
Area
June 2005
SAP AG and
Consolidation and Business Areas
Company
A company is an organizational unit in Financial
Accounting which represents a business
organization according to the requirements of
commercial law in a particular country.
Business Areas
A unit in an enterprise that groups product and
market combinations as homogeneously as
possible for the purpose of developing unified
business policy.
June 2005
SAP AG and
Client
General
Motors
GM Corp.
Chart of Accts
GMC Cadillac Chevrolet
Corporate
Fiscal Year Var.
GMCorporate
Credit CA
Cars Cars
Trucks Trucks Trucks
Business Areas
Consolidation of Company Codes
June 2005
SAP AG and
Client 100
Chart of
Accounts
Company
Code
Fiscal Year
Variant
Credit Control
Area
Pen Inc.
- Rules -

June 2005
SAP AG and
Rules
and Transactions
and Transactions
Relatively fixed
June 2005
SAP AG and
Unit 3, Part 4
Overview
Rules
Account groups
BS Balance Sheet Account Group
PL Income Statement Account Group
RA Reconciliation Account Group
Field status variant
Field status groups
Fiscal year variant
Tax version
June 2005
SAP AG and
Account Groups

Chrt/accts Acct group Description From To
CHRT BS Balance Sheet 100000 399999
CHRT PL Income Sheet 400000 999999
CHRT RA Reconciliation 110000 310000
June 2005
SAP AG and
So What is a
Reconciliation Account?
Postings to sub-ledgers (such as accounts
receivable or accounts payable) are
automatically concurrently posted to the
corresponding reconciliation account in the
General Ledger
In this way, the General Ledger is
automatically updated and remains in
balance with the customer and vendor
individual account totals
June 2005
SAP AG and
Account Groups
Identifier that controls which fields must be
entered when an account is created
Determine a valid number interval for each
of the groups (types) of General Ledger
accounts that have common attributes
Must be created before General Ledger
Chart of Accounts master records can be
created
You must assign each account to an
appropriate account group
June 2005
SAP AG and
Account control Suppress Req. entry Opt. entry Display

Currency
Tax category
Reconciliation account

Account Group BS

Account control
Account management
Document entry
Bank/financial details
Interest calculation
Joint venture
June 2005
SAP AG and
Field Status
Field status controls how the data will be
entered for a field when an accounting
master record is being used in a
transaction
Determining whether a field is required,
optional, suppressed, or display only
Field status controls are also relevant to a
specific activity create, change, or
display

June 2005
SAP AG and
Field Status Variant
Fld status group Text
ZBSA Balance Sheet Accounts
ZEXP Expense Accounts
ZGRI Material Management (GR/IR) Accounts
ZRCN Reconciliation Accounts
ZREV Revenue Accounts
June 2005
SAP AG and
Field status variant (V000) - Group ZBSA - Balance Sheet Acct.

General data
Additional account assignments
Materials management
Payment transactions
Asset accounting
Taxes
...
General Data Suppress Req. entry Opt. entry Display

Assignment number
Text
Invoice reference

June 2005
SAP AG and
Departure Country
Destination County
Customer Tax Classification (EU countries)
Material Tax Classification
Tax Version
June 2005
SAP AG and
Unit 4
June 2005
SAP AG and
June 2005
SAP AG and
Organizational Data
June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Unit 4
Overview
Unit Concept
Purchasing and SAP R/3
Procurement Process
Organizational Relationships
Warehouse Management
June 2005
SAP AG and
Unit Concept
The purchasing process involves the
acquisition of goods and services to
support the creation of goods and services
in the organization
In this unit the structure required for the
purchasing process is presented
June 2005
SAP AG and
Purchasing and SAP R/3
The purchasing process exists in the
Materials Management (MM) module of
SAP R/3 and Finance (FI) module
The structure includes elements of the
Materials Management (MM) and Finance
(FI) modules
Master data for the purchasing process
exists in the (MM) and (FI) modules
The purchasing process can and does
interface with the Production Planning
(PP), Warehouse Management (WM), and
Quality Management (QM) modules
June 2005
SAP AG and
Components of Materials Management
Materials
Management
(MM)
Logistics
Invoice
Verification
Material
Master
Physical
Inventory
Valuation
MRP
Service
Entry
Sheet
Service
Master
Product
Catalog
Purchasing
Inventory
Mgmt.
Foreign
Trade/
Customs
June 2005
SAP AG and
Procurement Process
(Procure-to-Pay)
Purchase
Requisition
Payment
to Vendor
Notify
Vendor
Vendor
Shipment
Invoice
Receipt
Goods
Receipt
Purchase
Order
3-
Way
Matc
h
June 2005
SAP AG and
Plant
Valuation Area
Storage Locations
Purchasing Organizations
Purchasing Groups

June 2005
SAP AG and
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
June 2005
SAP AG and
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
June 2005
SAP AG and
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

June 2005
SAP AG and
Plant/Storage Location
Storage Location
20 - Quality
Storage Location
10 - Inventory
Plant P001
June 2005
SAP AG and
Purchasing Organization
Organizational unit responsible for the
procurement of materials and services.
SAP requires that purchasing organizations
be assigned at the plant level
A purchasing organization can be assigned
to more than one plant
A purchasing organization can be assigned
to a company code
June 2005
SAP AG and
Plant/Purchasing Organization (1)

One plant multiple purchasing
organizations
Purchasing
Organization P002
Purchasing
Organization P001
Plant P001
June 2005
SAP AG and
(continued)
Each plant has its own purchasing
organization
Purchasing
Organization P002
Plant P002
Purchasing
Organization P001
Plant P001
June 2005
SAP AG and
(continued)
One purchasing organization for
multiple plants
Plant P002 Plant P001
Purchasing
Organization P001
June 2005
SAP AG and
(continued)
One purchasing organization for multiple
company codes
Company Code
C002
Company Code
C001
Purchasing
Organization P001
June 2005
SAP AG and
Purchasing Group
Responsible for specified purchasing
activities
Often used to identify individual buyers
Used for reporting

June 2005
SAP AG and
Purchasing Organization/Purchasing
Group
Purchasing Group
002
Purchasing Group
001
Purchasing
Organization P001
June 2005
SAP AG and
Organizational Structure
Purchasing
Organization P001
Company Code
C001
Storage Location
20 - Quality
Storage Location
10 - Inventory
Plant P001
Purchasing
Group
001
June 2005
SAP AG and
Warehouse Management
Not required for the purchasing
functionality of SAP R/3
A separate module in the SAP R/3
environment
Many functions and elements can be
performed outside of the module

June 2005
SAP AG and
Warehouse Management Elements
Receiving, identifying and sorting goods
Placing goods into storage bins
Taking inventory
Monitoring and inspecting goods in storage
Preplanning distribution of materials
Picking and accumulating orders
Packaging, loading and shipping goods

June 2005
SAP AG and
Company C001
Plant P001
Plant P002
Storage Loc. 30
Storage Loc. 10
Warehouse 1
Warehouse 1
Aisle 1 Aisle 1 Aisle 2 Aisle 2 Aisle 3
Rack 1 Rack 1
Rack 1
ABC123
Storage Loc. 40
Storage Loc. 20
Warehouse Management Relationships
Inventory
Management
(MM)
Warehouse
Management (WM)
Company Code
Plant
Storage Loc.
Warehouse
Aisle
Storage Rack
Quantity
- Master Data -

Unit 5
June 2005
SAP AG and
June 2005
SAP AG and
Master Data
Vendor master data

June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Unit 5
Overview
General Ledger Master Data
Chart of Accounts Data
Company Code Data
Reconciliation Accounts
Accounts Receivable
Accounts Payable
Goods Receipt/Invoice Receipt
General Ledger Account Balances
June 2005
SAP AG and
General Ledger
Master Data
A unique master record is created for each
General Ledger account
General Ledger accounts are created at
the client level
Business transactions are posted to the
portfolio of General Ledger accounts made
available to a company through the
assignment of a specific Chart of Accounts
June 2005
SAP AG and
General Ledger
Master Data (continued)
Contains control information for:
Data entry
Data processing
Specifies the account type:
Balance sheet
Income statement
June 2005
SAP AG and
General Ledger
Organization of the Data
Contains one or more Chart of Accounts
specific information areas
Contains one or more Company Code
specific information areas
In this way, a General Ledger master
account can be shared by several
combinations of Charts of Accounts and
Company Codes
June 2005
SAP AG and
General Ledger
Chart of Accounts Data
Account number
Name of the Chart of
Accounts
Account group provides
information that controls
the creation of the
master record for a
company code
100101
CPEN
X
BS
Account number
Chart of accounts

Account group
P&L statement acct type
Balance sheet account

June 2005
SAP AG and
General Ledger
Company Code Data
Local currency
Foreign currency
Tax category
Open item management
Line item display
Sort key

June 2005
SAP AG and
General Ledger
Company Code Data (continued)
Local currency
Specify the currency in which the account is to
be posted
Transaction figures are always updated and
displayed in local currency
June 2005
SAP AG and
General Ledger
Foreign currency
Specify the alternative currency in which the
account is to be posted
It is possible to select up to two alternative
currencies
Transaction figures will be updated in both the
local and alternative currencies
June 2005
SAP AG and
General Ledger
Tax category
Specify the type of tax on purchase and sales
(input or output taxes) that can be posted to the
account
If the account is not tax relevant, do not make a
specification in this field
June 2005
SAP AG and
General Ledger
Open item management
Indicates that the account is subjected to an
affirmative clearing process involving the
matching of debits to credits with the purpose of
closing each individual line item
For example, reconciliation accounts
You can only archive an accounting document
if all of its individual line items have been
cleared
June 2005
SAP AG and
General Ledger
Line item display
Select if it is desirable to view all the debit and
credit detail for the account
Remember that when posting items to such
accounts and displaying line items, additional
storage space and system time are required
June 2005
SAP AG and
General Ledger
Line item display should not be used for
the following accounts:
Reconciliation accounts
Accounts that have a summation function and
are analyzed by another application such as
revenue or stock accounts
Output and input tax accounts, since tax
information is required only in connection with
the document
June 2005
SAP AG and
General Ledger
Sort Key
Necessary when line item display is selected
Determines the data field that will be used to
sort the line items
Posting date
Document date
Cost center
June 2005
SAP AG and
General Ledger
Reconciliation accounts
When you post to a sub-ledger, the system
automatically concurrently posts to the
corresponding reconciliation account in the
general ledger
In this way, the general ledger is automatically
updated and remains in balance with the
individual account totals
June 2005
SAP AG and
Subsidiary
Ledger Accounts
A/R, A/P, GR/IR
General Ledger
Reconciliation Accounts
A/R, A/P, GR/IR

General Ledger
General
Ledger
Debit Credit
Debit Credit
A/P
Debit Credit
A/R
Debit Credit
GR/IR
$$ $$
$$ $$ $$ $$ $$ $$
June 2005
SAP AG and
Accounts Receivable
Reconciliation Account
Integration
Accounts Receivable
Reconciliation
950
300
Customer 142
150
Customer 123
400
Customer 135
100
Customer 189
June 2005
SAP AG and
Accounts Receivable
Integration
FI
Financial
Accounting
FI
Financial
Accounting
Integration
FI
Financial
Accounting
FI
Financial
Accounting
MM
Materials
Mgmt.
MM
Materials
Mgmt.
Revenue
Increase to A/R
Goods
Issue
Sales
Order
Income Statement
Balance Sheet
FI
Financial
Accounting
FI
Financial
Accounting
CGS
Decrease to Inventory
SD
Sales and
Distribution
June 2005
SAP AG and
Accounts Payable
Financial Accounting (FI) Materials Management (MM)
Integration
Accounts Payable
Reconciliation
950
250
Vendor 100435
200
Vendor 100234
100
Vendor 100621
300
Vendor 100846
June 2005
SAP AG and
Accounts Payable
Integration
MM
Materials
Mgmt.
MM
Materials
Mgmt.
FI
Financial
Accounting
FI
Financial
Accounting
FI
Financial
Accounting
FI
Financial
Accounting
Increase to A/P
Goods
Receipt
Balance Sheet
FI
Financial
Accounting
FI
Financial
Accounting
Increase to Inventory
Financial Accounting (FI) Materials Management (MM)
Integration
Invoice
Receipt
MM
Materials
Mgmt.
MM
Materials
Mgmt.
June 2005
SAP AG and
Line Item Display

Account number 100999 Bank Account
Company code C999
Period Debit Credit DC bal. Balance
C/f bal. 750,000.00
Period 1 5,250.00 3,540.00 1,710.00 751,710.00
Period 2 25,000.00 15,000.00 10,000.00 761,710.00
Period 1
Doc. no. DT Doc.date Currency Amount
1500000013 KZ 01/05/04 USD 1,800.00 -
1500000014 KZ 01/06/04 USD 990.00 -
100000012 SA 01/08/04 USD 750.00
1400000342 DZ 01/14/04 USD 5,250.00
Unit 6
- Master Data and Rules -

June 2005
SAP AG and
R
u
l
e
s

MM
June 2005
SAP AG and
Master Data
Vendor master data

June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solution
s
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Unit 6, Part 1
Overview (Master Data)
Unit Concept
Procure-to-Pay Process
Vendor Master Data
Purchasing Information Record

Integration Materials Management (MM)
June 2005
SAP AG and
Unit Concept
The purchasing process involves the
acquisition of goods and services to
support the creation of goods and services
in the organization
Master data and rules required for the
purchasing process is presented
June 2005
SAP AG and
Procurement Process
(Procure-to-Pay)
Purchase
Requisition
Payment
to Vendor
Notify
Vendor
Vendor
Shipment
Invoice
Receipt
Goods
Receipt
Purchase
Order
3-
Way
Matc
h
June 2005
SAP AG and
Master Data
General
Business rules and supportive information
are stored in master data records
Each master data record is unique in name
or number
Internal or external number ranges are
possible
Usually created or converted (legacy
system) in the beginning
Maintained by numerous organizations

June 2005
SAP AG and
Master Data
General (continued)
Vendor master records are maintained by
both accounts payable (A/P) and
purchasing
Material master records are maintained by
purchasing, sales, production, accounting,
etc.
Purchasing information records are
maintained primarily by purchasing
June 2005
SAP AG and
Vendor Master
Organization of the Data
Integration
Vendor 10001
General Data
Company Code Data
Purchasing Organization
Data (MM)
June 2005
SAP AG and
Vendor Master Data
A master record must be created for every
vendor
General data, Company Code data (Financial
Accounting - FI), and Purchasing Org data
(Material Management - MM)

Purch. org data
Purchasing data
Partner functions

Company code data
Account
management
Payment
transactions
General data
Address
Control data
Payment
transactions
June 2005
SAP AG and
Vendor Master
Includes all data necessary for processing
business transactions and corresponding
with vendors
Information is shared between the
accounting and purchasing departments
June 2005
SAP AG and
Vendor Master
Typical Screens
Address
Control
Payment Transactions
Accounting Information
Correspondence
Purchasing Data
Partner Functions
June 2005
SAP AG and
General Data Address

Address
Vendor Name
Search Term
Street address
City, Region Postal code
Country
Communication
Language
Telephone, Fax, E-Mail
Vendor Master
June 2005
SAP AG and
Vendor Master
General Data Control Data
Account Control
Customer
Authorization
Trading partner
Group key
Tax Information
Tax codes
Fiscal address
Country code
City code
Reference Data / Area
International locator number
Industry
Transport zone

June 2005
SAP AG and
Vendor Master
General Data Payment Transactions
Bank Details
Bank Key
Bank Account
Account Holder
Partner Bank Type
Payment Transactions
Alternative Payee
Instruction Key

June 2005
SAP AG and
Vendor Master
Company Code Accounting Information
Sort Key
Release Group
Interest Calculation
Interest Calculation Indication
Interest Calculation Frequency
Withholding Tax
Withholding Tax Code
Exemption Number

June 2005
SAP AG and
Vendor Master
Company Code Payment Transactions
Payment Data
Payment Terms
Tolerance Group
Check Double Invoice
Check Cashing Time
Automatic Payment Transactions
Payment Methods
Alternate Payee
Payment Block
Invoice Verification
Tolerance Group
June 2005
SAP AG and
Vendor Master
Company Code Corr. Accounting
Dunning Data
Dunning Procedure
Dunning Block
Dunning Recipient
Date of Legal Dunning Procedure
Correspondence
Local Processing
Accounting Clerk
Account With Vendor

June 2005
SAP AG and
Vendor Master
Purch. Org. Data Purchasing Data
Conditions
Order Currency
Terms of Payment
Incoterms
Minimum Order Value
Sales Data
Salesperson
Control Data
Acknowledgement Required
Returns to Vendor
Automatic Purchase Order
Default Data Material
Purchasing Group
Planned Delivery Time

June 2005
SAP AG and
Vendor Master
Purch. Org. Data Partner Functions
Partner Functions
Partner Function
Partner Name

June 2005
SAP AG and
Vendor Master
Purch. Org. Data Account Group
Vendor masters are assigned to a vendor
account group
Through field status maintenance, vendor
account groups can be setup for one-time
vendors, regional vendors, and internal
vendors
The vendor account group controls both
type and number range assignment for
vendors
June 2005
SAP AG and
Unit 6, Part 2
Overview (Rules)
Payment and Planning
Plant Parameters
MRP

June 2005
SAP AG and
Rules
and Transactions
and Transactions
Relatively fixed
June 2005
SAP AG and
Purchasing Info Record
The purchasing info record provides
continuously updated information about the
relationship of a specific material with a
specific vendor
Order unit, price, price changes,
tolerances, reminder infos, historic data,
statistics, texts
Choice of automatic or manual updating
June 2005
SAP AG and
Source List
The source list stores information about
where to acquire a given material for a
given period of time
It specifies whether this source should be
used by Materials Requirement Planning
(MRP)
June 2005
SAP AG and
Fiscal Period
In order to execute any material postings,
the current fiscal period has to be activated
By initializing the company code for
material management, the first major
integration between Financial Accounting
(FI) and Logistics is completed
June 2005
SAP AG and
Payment and Planning
Payment Program
Plant Parameters
Material Requirements Planning (MRP)

June 2005
SAP AG and
Payment Program
Invoice processing
Partial or full payment requirements
Automatic payments
Manual payments
Returns and credits (offset postings)
June 2005
SAP AG and
Plant Parameters
controllers
Individuals responsible for running and
maintaining Material Requirements Planning
data and reports
Negative stock allowance
If a material is allowed to go negative for
inventory stock
June 2005
SAP AG and
Plant Parameters
(continued)
Purchasing
Special purchasing rules
External purchasing only settings
Planned orders
Rescheduling
Conversion to purchase requisitions

June 2005
SAP AG and
Plant Parameters
(continued)
Document number ranges
Planned orders
Purchase requisitions
Material Requirements Planning (MRP) lists
Reservations

June 2005
SAP AG and
Material Requirements Planning
Detailed planning level
Primary Functions
Monitor inventory stocks
Determine material needs
Quantity
Timing
Generate purchase or production orders

June 2005
SAP AG and
Materials Requirements Planning
(continued)
Integrates Production Planning (PP)
module with the Materials Management
(MM) module
Prerequisites for Materials Requirement
Planning (MRP)
Activate Material Requirements Planning
(MRP) for a plant
Material Master created
Material Requirements Planning view
Material Requirements Planning type
June 2005
SAP AG and
Basic Process
Exploding the Bill of Material (if using
production)
Netting Out Inventory
Lot Sizing
Time-phasing requirements
June 2005
SAP AG and
Net Requirements
calculates the quantity of material needed,
if any, based on
Sales Orders
Material Reservations
Repair Parts
Inventory
Purchase Orders
Etc
June 2005
SAP AG and
Net Requirements (continued)
If adequate inventory is not available to
meet Material Requirements Planning
(MRP) needs then the system generates
Planned Production Orders
Planned Purchase Orders

June 2005
SAP AG and
Lot Sizing
Static
Based on fixed values in the Material Master
Periodic
Groups net requirements together from multiple
periods
Optimum
Calculates the optimum lot size for a several
periods of net requirements

June 2005
SAP AG and
Unit 6, Part 3
Overview (Material Master)
Material Type
Industry Sector
Maintenance Features
Organizational Levels
Primary Views
June 2005
SAP AG and
Material Master Data
Material master data can be related to all
organizational levels
General information of a material
(description, number, base unit of
measure)
Has to be related to the highest level of
organization - the client
June 2005
SAP AG and
Material Master
Material Type
Material types group materials with the
same attributes
Material type information determines:
What views are maintained
Whether internal or external procurement is
allowed
If changes in material quantity are updated
Which general ledger accounts are updated
June 2005
SAP AG and
Material Master
Material Types
Standard material types are used in all
industries.
ROH: Raw Materials
Purchased externally only
No sales view
HAWA: Trading Goods
Always purchased externally
Sold without any change to the material
No manufacturing views exist
June 2005
SAP AG and
Material Master
Material Types (continued)
FERT: Finished Products
Are produced internally
Normally no purchasing views exist

June 2005
SAP AG and
Material Master
Additional Material Types
HIBE: Operating Supplies
VERP: Customer returnable packaging
LEER: Empty containers
KMAT: Configurable material
ERSA: Spare parts
DIEN: Services
June 2005
SAP AG and
Material Master
Additional Material Types (continued)
NLAG: Non-stock, non-valuated
material
UNBW: Non-valuated, stocked
material
FHMI: Production resources/tools
WETT: Competitive products
PROD: Product group
IBAU: Maintenance assembly
(Plant Maintenance)
June 2005
SAP AG and
Material Master
Industry Sector
Records are grouped according to industry
sector and material type
Determines the industry specific data that
will appear on the master record
June 2005
SAP AG and
Material Master
Maintenance
Defaults - speeds entry of data by using
the most frequently used field values
(plant, purchasing organization, etc.)
Reference Material - speeds entry of data
by copying data from existing material
master
June 2005
SAP AG and
Material Master
Maintenance (continued)
Profiles - speeds entry of data by copying
standard data created in a profile into a
selected view Materials Requirements
Planning (MRP)
Collective entry of storage location data -
speeds creation of multiple storage
locations
June 2005
SAP AG and
Material Master
Levels
Client
Description
Units of measure
Material number
Engineering data
Plant
Planning data
Manufacturing data
Purchasing data
June 2005
SAP AG and
Material Master
Levels (continued)
Storage Location
Stock quantities
June 2005
SAP AG and
Material Master
Views
Basic data 1, 2
Classification
Sales: sales organization data 1, 2
Sales: general/plant data
Sales text
Purchasing
Purchase order text
Forecasting
June 2005
SAP AG and
Material Master
Views (continued)
MRP 1, 2, 3, 4
Work scheduling
Storage
Warehouse management
Quality management
Accounting 1, 2
Costing 1, 2
June 2005
SAP AG and
Material Master
Material Management
Basic Data
Purchasing
MRP 1,2,3
General Plant
Data/Storage
Accounting 1

Barrel Pen
June 2005
SAP AG and
Material Master
Basic Data
General data
Basic Unit of Measure
Unit of measure in which stocks of the material are
managed
Material Group
Key that you use to group together several materials
or services with the same attributes
Division
Used to determine the sales area and the business
area for a material, product, or service

June 2005
SAP AG and
Material Master
Basic Data (continued)
Dimensions/EANs
Gross weight
Used to check storage capacity in warehouse
Net weight
Weight excluding packaging and extras this is
needed for sales and distribution
Weight Unit
Unit of Measure for weight
Volume
The space that the material occupies per unit of
volume

June 2005
SAP AG and
Material Master
Purchasing View
General Data
Order Unit
The unit of measure in which a company purchases
the product
Purchasing Group
Key for a buyer or a group of buyers, who is/are
responsible for certain purchasing activities.
Purchasing Values
Purchasing Value Key
Define the reminder days and tolerance limits for
purchasing
June 2005
SAP AG and
Material Master
Plant Data/Storage 1
General Data
Container Requirements
Define the regulations that govern which type of container
the material must be stored and shipped in
Storage Conditions
Defines the conditions on how a material must be stored or
warehoused
Shelf Life Data
Minimum remaining shelf life
Minimum time the material must keep upon goods receipt
for the goods receipt to be accepted by the system
Total Shelf Life
Period of time the material will keep in total, from the date
of production or receipt to the shelf life expiration date
June 2005
SAP AG and
Material Master
MRP 1
General Data
Purchasing Group
The buyer(s) who are responsible for certain
purchasing activities
MRP Procedures
MRP Type
Determines whether and how the material is planned
Reorder Point
If stock falls below this point, the system is flagged to
create a planned order
MRP Controller
The person(s) responsible for the material planning
June 2005
SAP AG and
Material Master
MRP 1 (continued)
Lot Size Data
Lot Size
The lot sizing procedure to calculate the quantity to
be produced or procured
Minimum Lot Size
The smallest order quantity
Fixed Lot Size
The quantity to be ordered
June 2005
SAP AG and
Material Master
MRP 2
Scheduling
Planned Delivery Time
Number of calendar days needed to obtain the
material
Scheduling Margin Key
Used to determine the floats required for scheduling
Net Requirement Calculation
Safety Stock
Specifies the quantity whose purpose is to satisfy
unexpectedly high demand in the coverage period

June 2005
SAP AG and
Material Master
MRP 3
Availability Check
Specifies whether and how the system checks
availability and generates requirements for materials
planning

June 2005
SAP AG and
Material Master
Accounting 1
Current Valuation
Valuation Class
Allows the stock values of materials of the same material
type to be posted to different G/L accounts.
Allows the stock values of materials of different material
types to be posted to the same G/L account.
Determines together with other factors the G/L accounts
updated for a valuation-relevant transaction (Material
Movements)
Price Unit
Number of units to which the price refers

June 2005
SAP AG and
Material Master
Accounting 1 (continued)
Current Valuation
Price Control Indicator
The price control used to valuate the stock of a material
(e.g, Standard or Moving Average Price)
Standard Price
The valuation of material stocks at standard prices means
that all goods movements are valuated at the same price
over an extended period
Moving Average Price
The system calculates the moving average price
automatically by dividing the material value in the stock
account by the total of all storage location stocks in the
plant concerned
- Rules -

Unit 7
June 2005
SAP AG and
R
u
l
e
s

FI
June 2005
SAP AG and
Rules
and Transactions
and Transactions
Relatively fixed
June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Unit 7
Overview
Posting Periods
Tolerance Groups for Account Postings
Accounts Payable Settlement
Document Numbers
June 2005
SAP AG and
Posting Periods
Before it is possible to post documents, it is
necessary to define posting periods
Fiscal years are divided into one or more
posting periods
Each posting period is delimited by both a
start and finish date
A common division of a fiscal year involves
defining 16 posting periods -- 12 months
and 4 quarter ending posting periods

June 2005
SAP AG and
Tolerances Groups for
Account Postings
Internal control amount limits that serve
to define the maximum authorization levels
for your employees
Must be at least one entry for every company
code
Can be defined for an employee group with
employees being assigned to a given group to
effect the control
Can be undefined at the group level meaning
that the control is effective for everyone who is
not a member of a group
June 2005
SAP AG and
Tolerances Groups for
Account Postings (continued)
Internal control amount limits that serve
to define the maximum authorization levels
for your employees with respect to:
A single transaction
A customer or vendor account line item
Discount percentage granted to a line item
Payment differences that can be accepted in
settlement of an account (e.g., accounts
payable)
June 2005
SAP AG and
Accounts Payable
Settlement
Purchase
Order
Goods
Receipt
Invoice
Receipt
Debit Credit
Payment
Program
Verification
June 2005
SAP AG and
Accounts Payable
Settlement (continued)
Select payment method and bank
Select items for payment
Calculate the payment amount, taking
account of cash discount periods
Post the payment document
Print payment medium

June 2005
SAP AG and
Document Numbers
All posted transactions must have a unique
number assigned to it
Usually these numbers are system
generated
The numbers serve to specifically identify
the business content of a transaction so
that it may be recalled at a later time
The actual system stored document
number includes information respecting the
year, date, and company codes

June 2005
SAP AG and
Document Numbers
(continued)
Before any documents can be posted to a
company or company code, there must be
a number range assigned to the document
type
New transaction document number ranges
must be created at the start of each new
fiscal year

- Transactions -

Unit 8
June 2005
SAP AG and
FI
June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solution
s
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Transaction Data

June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Unit 8
Overview
Document Principles
Document Types
Posting Keys
June 2005
SAP AG and
Document Principles
Each completed accounting transaction
writes data to the database and creates a
unique electronic document
Each document contains information such
as:
Responsible person
Date and time of the transaction
Commercial content including company codes

June 2005
SAP AG and
Document Principles
(continued)
An accounting document captures the
entire transaction in a manner that
facilitates recall for reporting purposes
It remains as a complete unit in the system
until archived
Once created, a document can not be
deleted from the database

June 2005
SAP AG and
Document Principles
(continued)
The SAP R/3 document principle provides
a solid framework for a strong internal
control system
Audit trails allow an accountant to begin
with an account balance on a financial
statement and trace through the
accounting records to the transactions that
support the account balance or to trace
individual transactions to the effected
account balance(s) on a financial
statement

June 2005
SAP AG and
Document Principles
(continued)
Each posted accounting document has a
header
June 2005
SAP AG and
Document Principles
(continued)
Each posted accounting document has at
least two lines (e.g., debit and credit)

June 2005
SAP AG and
Document Types
A way to categorize different transactions
Many different document types are supplied in
the system
Document types are associated with
number ranges
All documents of the same document type are
stored in the system by document number
Determine the type of account that can be
posted to

June 2005
SAP AG and
Document Types
(continued)
SA General ledger account documents
DR Customer invoices
DG Customer credit memos
DZ Customer payments
KR Vendor invoices
KG Vendor credit memos
KZ Vendor payments
KN Vendor net invoices and credit
memos

June 2005
SAP AG and
Posting Keys
Determine whether the item to be posted is
a debit or a credit
Determine the type of account that can be
posted
June 2005
SAP AG and
The posting key (PK) has
a control function that
pertains to the document
line items.
It determines the
following:
Account type for
posting the line item
Debit or credit posting
of line items
Field status for
additional information

Posting Keys
(continued)
June 2005
SAP AG and
Assets
70 75
General Ledger
40 50
Material
89 99
Customers
0 1
Vendors
2 3
Common
Posting
Keys
Posting Keys
(continued)
- Transactions -

Unit 9
June 2005
SAP AG and
FI
June 2005
SAP AG and
Transaction Data

June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Unit 9
Overview
Monthly Rent Cycle
Invoice Receipt
Invoice Entry
Accounts Payable Settlement
June 2005
SAP AG and
Rental
Agreement
Accounts
Payable
Invoice
Receipt
Monthly Rent Cycle
June 2005
SAP AG and
Invoice Receipt
Invoice
Receipt
Invoice
Verification
June 2005
SAP AG and
Invoice
Header
Line Items
Vendor
Information
Invoice Entry
Type of
Transaction
June 2005
SAP AG and
Accounts Payable
Settlement
Select payment method and bank
Select items for payment
Calculate the payment amount, taking
account of cash discount periods
Post the payment document
Print payment medium


- Rules -
Unit 10
June 2005
SAP AG and
R
u
l
e
s

MM
June 2005
SAP AG and
Rules
and Transactions
and Transactions
Relatively fixed
June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Unit 10
Overview
Reservations
Tolerances
Purchasing
Goods Receipt
Invoice Receipt
Automatic Account Assignment

June 2005
SAP AG and
Reservations
A request to have a material ready for
issue at a future date for a production
order, sales order, etc.
The purpose of a reservation is to ensure
that a material is available when required
and not assigned to another use

June 2005
SAP AG and
Purchasing Tolerances
A tolerance limit is set for allowed variance
before a warning/error message is
displayed
Price variance
Compares the price in the purchase order
with the valuation price stored in the material
master
Maximum cash discount
This tolerance limit is set to assure that cash
discounts do not exceed allowable discounts

June 2005
SAP AG and
Goods Receipts Tolerances
Purchase order price quantity there are
two tolerance levels maintained per item
The maximum percentage variance before a
goods receipt postings is not allowed
A percent variance that generates a warning
message but allows posting
Moving average price variance the
maximum allowable moving average price
change allowed

June 2005
SAP AG and
Invoice Receipts Tolerances
Many tolerance limits that can be
configured for invoice receipts: price,
quantity, and blanket purchase orders
These tolerances include:
Amount for item with or without order reference
Form small differences automatically
Percentage Over/Under Quantity Variance
Exceed amount: quantity variance
Blanket purchase order value and time limit
Price variance

June 2005
SAP AG and
Automatic account assignment is created
to avoid manual postings of financial
transactions which follow goods
movements to reflect the values of
transferred materials
Automatic account assignment is used
across all modules to keep track of the
values of materials that are being
consumed (e.g., production), or transferred
into other valuation areas of the company
June 2005
SAP AG and
(continued)
Automatic account assignment is a set of
rules and master data which enable the
financial tracking of logistics movement

June 2005
SAP AG and
Components
Components of Automatic Account
Assignment
Chart of Accounts
Valuation Grouping Code
Transaction Key
Modifier for Transaction Key
Valuation Class
June 2005
SAP AG and
Valuation grouping code - groups valuation
areas together
Example: valuation area is plant, five plants
exist in the company, all five plants use the
same accounts.
Multiple valuation groups are possible
June 2005
SAP AG and
Grouping Code
G001
Plant P003
Plant P002
Grouping Code
G002
Plant P005
June 2005
SAP AG and
Transaction Keys
Transaction Keys
The transaction keys are used to determine
accounts or posting keys for line items which
are created automatically by the system.
The transaction keys are defined in the system.

June 2005
SAP AG and
Transaction Keys
Transaction Keys
Inventory Postings
BSX
Offsetting Entry for Inventory Postings
GBB
Materials Management Small Differences
DIF
Cost (price) differences (PPV)
PRD
Goods receipt / inv. receipt clearing acct
WRX

June 2005
SAP AG and
Modifier
Modifier modifies the transaction key for
various movement types
Blank Goods receipt from purchase order
with account assignment
VBR Goods issue to consumption
VAX Goods issue to sales post to cost of
goods sold
AUF Goods receipt from a production order
post to production settlement
Etc. Many others
June 2005
SAP AG and
Material Types & Valuation Classes
Account category reference:
Builds the link between material types and the
valuation class(es)

Material Type Account Category Reference Valuation Class
ROH 0001 Reference for Raw Materials 3000/3001/3002/3003
HIBE 0002 Reference for Operating Supplies 3030/3031
HAWA 0005 Reference for Trading Goods 3100
FERT 0009 Reference for Finished Products 7920
June 2005
SAP AG and
Material Types & Valuation Classes
Material Type
ROH (Raw Material)
Acct Cat. Ref
0001 Raw Materials
Valuation Class
3000
(Steel)
Valuation Class
3001
(Paper)
Valuation Class
3003
(Plastics)
June 2005
SAP AG and
Account
790000
P
l
a
n
t

P
0
0
1

Valuation Class
3100 (Trading Good)
Grouping Code
G000
Goods Movement
GBB (Goods Issue)
Account Modifier
VBR (Iss. To Cons.)
P
l
a
n
t

P
0
0
2

Valuation Class
3100 (Trading Good)
Grouping Code
G000
Goods Movement
GBB (Goods Issue)
Account Modifier
VBR (Iss. To Cons.)
P
l
a
n
t

P
0
0
3

Valuation Class
3100 (Trading Good)
Grouping Code
G001
Goods Movement
GBB (Goods Issue)
Account Modifier
VBR (Iss. To Cons.)
Account
790001
June 2005
SAP AG and

What: Where Valued: Why 1: Why 2:
Where Value
is recorded:
Material Valuation Area
Goods
Movement
Additional
Information
Chart of
Accounts
Represented
By:
Valuation
Class
Valuation
Grouping Code
Transaction
Event Key
Account
Modifier G/L Account
Points To: Material Type Plant
What: Where Valued: Why 1: Why 2:
Where Value
is recorded:
BPEN000 Plant P001 Good Issue
Issued to
Consumption
Chart of
Accounts -
C000
Represented
By: 3100 G000 GBB VBR 790000
Points To: HAWA Plant P001
June 2005
SAP AG and
Goods Receipt
Materials can be received as stock items or
non-stock items
Receipt is possible from external or internal
sources
Individually / collectively
Tolerance limits can be set for goods
receipt
Special movement type for initial inventory
load

June 2005
SAP AG and
Goods Receipt
(continued)
Stock items can be received into restricted
or unrestricted stock
Non-stock items are received into orders,
projects, cost centers
Materials that are usually received into
inventory can also be received into orders,
projects, cost centers

June 2005
SAP AG and
Set parameters for invoice verification
Quantity, price, receiving date, P/O quantity
Updates material master if moving average
price
Automatic account assignment for price
differences - if allowed
Verify actual versus target

June 2005
SAP AG and
3-Way Match
Purchase order
- Target quantity -
- Target price -
Goods receipt
- Actual quantity -
Invoice receipt
- Actual price -
June 2005
SAP AG and
Accounts Payable
Settlement
Purchase
Order
Goods
Receipt
Invoice
Receipt
Debit Credit
Payment
Program
Verification
Unit 11
- Transactions -

June 2005
SAP AG and
MM
June 2005
SAP AG and
Transaction Data

June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Procurement Process
(Procure-to-Pay)
Purchase
Requisition
Payment
to Vendor
Notify
Vendor
Vendor
Shipment
Invoice
Receipt
Goods
Receipt
Purchase
Order
3-
Way
Matc
h
June 2005
SAP AG and
Basic Procurement Process
Requirements Determination - Purchase
Requisition
Vendor Selection
Order Processing - Purchase Order
Order Tracking
Goods Receipt and Inventory Management
Payment

June 2005
SAP AG and
Purchase Requisitions
Internal document
Requesting a certain quantity of material or
service on a certain date
Can be created:
Manually
Automatically (Materials Requirements
Planning (MRP), sales orders, etc.)
Release approval procedures are optional

June 2005
SAP AG and
Sources
Manually created by user department
Office supplies
Projects
Prototype materials
Automatically created by
Planning (Material Requirements Planning
(MRP), Master Production Schedule (MPS))
Plant Maintenance
Production Orders
Sales Orders

June 2005
SAP AG and
Processing
Create purchase requisition (manually or
automatically)
Determine source of supply
Release procedure (optional)
Assign vendor and process

June 2005
SAP AG and
Creating
Default data for line items
Delivery dates, plants, purchasing groups, etc.
Maintain line item data
Materials, quantities, delivery dates, etc.
Maintain account assignment (if required)
Cost center, General Ledger accounts, project
number, etc.
Check data
Save

June 2005
SAP AG and
Purchase Orders
Purchase Orders are:
A formal request to a vendor to provide
materials or services
An internal planning and tracking tool
Purchase Orders identify:
Vendor
Material and/or service
Quantity and price
Delivery dates
Terms of payment

June 2005
SAP AG and
Purchase Order Structure
Header - information specific to the entire
purchase order
Vendor
Currency
Payment terms

June 2005
SAP AG and
Purchase Order Structure
(continued)
Line item details
Account assignment
Delivery schedule
Materials or services quantity
Price
Description
Item category

June 2005
SAP AG and
Purchase Order
Request for Quotations
Purchase Order
Order Acknowledgment
June 2005
SAP AG and
Purchase Order
Output Format
Printed and mailed
E-mail
Electronic Data Interchange (EDI)
Faxed (hardcopy or electronic)
eXtensible Markup Language (XML)
June 2005
SAP AG and
Goods Receipt
Goods receipt with reference to a purchase
order
Copy data from purchase order
Delivery notification
Invoice verification
Updates purchase order history
Inventory update
Automatic update of General Ledger (G/L)
accounts
June 2005
SAP AG and
Goods Receipt
(continued)
You can search for the purchase order
number with
Material number, vendor number, etc.

June 2005
SAP AG and
Goods Receipt
Destinations
Stock - given a storage location, can be
posted to three different stock statuses
Unrestricted-use
Quality inspection
Blocked stock (valuated)
Consumption - can be assigned a recipient
or unloading point
Goods receipt for blocked stock - updates
inventory, but material is not valuated
(conditional acceptance)
June 2005
SAP AG and
Goods Receipt
Movement Types
Movement types - stock transactions
Goods receipt
Goods issue
Stock transfer
Movement type determines which
Quantity fields are updated
Stock types are updated
General Ledger (G/L) stock or consumption
accounts are updated
Fields are displayed during document entry
June 2005
SAP AG and
Goods Receipt
Movement Types (continued)
101 - goods receipt for purchase order into
warehouse/stores
102 - reversal of goods receipt for
purchase order into warehouse/stores
122 - return delivery to vendor
501 - receipt w/o purchase order into
unrestricted-use stock
June 2005
SAP AG and
Goods Receipt
Account Postings
Inventory account is debited at standard
price
Goods Receipt/Inventory Receipt (GR/IR)
clearing account is credited at purchase
order price
Price difference account is debited
(credited) with difference between standard
price and purchase order price
June 2005
SAP AG and
Goods Receipt
Effects
Purchase Order (PO) history and Purchase
Order (PO) updated
Material Master - stock and value updated
Notification of goods receipt issued
(optional)
Transfer request to Warehouse
Management system (if active)
June 2005
SAP AG and
Goods Receipt
Effects (continued)
Material and financial documents created
and/or updated
Stock and consumption accounts updated
Inspection notification in Quality
Management (QM) - if active

June 2005
SAP AG and
Matches the vendors invoice to the
purchase order and the goods receipt (3rd
part of 3-way match)
Matches price and quantity
Updates the purchase order and its history
Updates accounting information
June 2005
SAP AG and
Invoice Payment
Selects invoices for payment based on the
payment terms in the vendor master or
purchase order
Generates payment for released invoices
Updates accounting information
June 2005
SAP AG and
3-Way Match for Payment
Purchase
Order
Goods
Receipt
Invoice
Receipt
Debit Credit
Payment
Program
Verification
June 2005
SAP AG and
Accounts Payable
Settlement Process
Determines:
Open items to be paid
When they will be paid
Bank from which payment will be made
Payment medium
Who will get paid
Payment process creates a financial
accounting document to record the
transaction
June 2005
SAP AG and
Goods Receipt / Invoice Receipt
Purchase requisition
Purchase order
and Financial Accounting (FI)
via automatic account
assignment
Goods receipt
No impact on
Dr Cr
Inventory
$100
Dr Cr
GR / IR
$100
June 2005
SAP AG and
Goods Receipt / Invoice Receipt
Amount owed is
assigned and transferred to
vendor account payable
Invoice receipt
Dr Cr
Vendor A/P
$100
Dr Cr
GR / IR
$100
June 2005
SAP AG and
Vendor Payment
Amount owed is paid to
vendor and account payable
is reduced
Bank
Dr Cr
Vendor A/P
$100
Dr Cr
Bank
$100
June 2005
SAP AG and
Integration Points
Invoice
Receipt
Payment
Program
Goods
Receipt
AP
(Vendor)
Dr Cr

GR / IR
$100
Bank
Dr Cr
Inventory
$100 $100 $100
Dr Cr Dr Cr
$100 $100
June 2005
SAP AG and
Debit posting $100
BSX - inventory
posting to trading
goods inventory
account 201XXX
Credit posting $100
WRX goods receipt
posting to GR/IR
account 310XXX
Unit 12
- Transactions -
June 2005
SAP AG and
MM
June 2005
SAP AG and
Transaction Data

June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Unit 12
Overview
A company may want to establish a long
term purchasing relationship with a vendor
Its is accomplished through a purchasing
contract (outline agreement or blanket
order)
Purchases of that material from that vendor
are then simplified and streamlined
June 2005
SAP AG and
Buyer/Supplier Relationships
Four Types
Antagonistic parties view each other as
the enemy (lose/lose)
Adversarial each party attempts to
maximize their gain (win/lose)
Cooperative parties understand the
benefits of working together (win/win)
Collaborative parties look for
opportunities to create value (win/win)

June 2005
SAP AG and
Buyer/Supplier Relationships
Long term partnerships are the objective of
the supplier evaluation and selection
process for contracts
Traditional purchasing process
Creates an environment of mistrust and low
bidder mentality
Leads to higher total purchasing costs
June 2005
SAP AG and
Supplier Evaluation and Selection
Identify need for long term supplier contract
Determine specific sourcing requirements
Identify potential suppliers
Determine method of evaluating suppliers
Select supplier for contract
Negotiate and execute contract
June 2005
SAP AG and
Benefits of Managing the Supply Base
Contract with only world-class suppliers
The fewer suppliers the lower the
purchasing overhead
Purchasing can pursue strategic sourcing
issues, instead of clerical functions
Streamline the supply chain
Improved overall quality
Improved delivery performance

June 2005
SAP AG and
Outline Agreement
Long-term purchase agreements
Outline agreements can be subdivided into
the following types:
Contracts
Scheduling agreements
Outline agreements can be subject to a
release (approval or clearance) procedure

June 2005
SAP AG and
Contract Process Overview
Step one is to identify and evaluate
suppliers
It may involve supplier development
The goals are:
Develop partnerships with good suppliers
Reduce total cost of purchased materials and
services
June 2005
SAP AG and
Contracting Questions
How will potential suppliers be evaluated
and selected?
What procedures will be required to
manage the contracts (and suppliers)?
How will performance be measured?
How many are too many suppliers?
Too many suppliers cost money
Supplier integration
Collaborative agreements
Supplier development
Without material production shuts down
What is the risk?
June 2005
SAP AG and
Contract Management
Supplier performance metrics
On-time delivery
Material and/or service quality
Returned materials
Expedite issues
Pricing analysis
Problem resolution procedures
Improve or else
Continuous improvement process
When to end the contract
June 2005
SAP AG and
Creating a Contract
Is a long-term agreement with a vendor to
provide a material or service
For an agreed upon period of time
At a negotiated price or quantity
Can be created manually or with reference
to purchase requisition, Request for Quote
(RFQ)/quotation etc.
June 2005
SAP AG and
Two Types of Contracts
Quantity contracts are agreements with a
particular vendor to purchase a specific
quantity of materials. Example: Target
quantity of 50,000 meters of electrical wire
at $2/meter. (MK)
Value contracts are similar to quantity
contract except the agreement is to
purchase an established monetary value of
materials. Example: Target value of
$100,000 for electrical wire. (WK)
June 2005
SAP AG and
Quotations/Contracts Process
Requirement for material is identified
Process followed to select a vendor
Request for Quotation (RFQ)
Maintaining a Quotation
Comparison of Prices
Creating a Contract
Creating a Release Order
June 2005
SAP AG and
Request for Quotation (RFQ)
Is an invitation to a vendor to indicate their
terms and conditions (in particular, their
price) for the supply of a material or the
provision of a service by submitting a
quotation
Identifies the required material, quantity,
and delivery dates

June 2005
SAP AG and
Quotation
A quotation contains the vendor's pricing
and conditions for providing the material or
service stated in the Request for Quotation
(RFQ)
In the SAP component Materials
Management (MM) Purchasing, the RFQ
and quotation are the same document. You
enter the vendor's pricing and conditions in
the original RFQ.
June 2005
SAP AG and
Maintaining a Quotation
Enter each vendor's quotation in the
associated Request for Quotation (RFQ)
Compare prices using the price
comparison list
Store the best quote in an info record
Optionally, send rejection letters to the
losing bidders
June 2005
SAP AG and
Comparison of Prices
You can compare the prices from all
quotations from the competitive bidding
process using the price comparison list
The comparison list ranks the quotations
by item from lowest to highest price

June 2005
SAP AG and
Purchase order that references a contract
is called a release orders, they specify:
Number of the contract
Quantity to be released
Delivery date
Release order documentation (open
quantity, quantity released to date, total
value) is automatically updated against the
contract when a release order is created
June 2005
SAP AG and
(continued)
The vendor data, price data, and the
delivery terms and conditions are copied
directly to the release order
Release orders can be created from a
proposed purchase requisition generated
off an Materials Requirement Planning
(MRP) run (net requirements)
Manually
Automatically
Unit 13

June 2005
SAP AG and
June 2005
SAP AG and
Organizational Data
June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Components of Sales and Distribution
Sales and
Distribution
(SD)
Sales
Support
Sales
Credit
Mgmt.
Shipping
Transport
Billing
Foreign
Trade
Sales
Information
System
Master
Data
June 2005
SAP AG and
Sales Organization
Sales Organization
Sells and distributes products
Negotiates terms of sales
Responsible for these business transactions
Critical organization element to the
definition of business markets
A sales transaction is linked to only one
Sales Organization
June 2005
SAP AG and
Sales Organization
(continued)
US Sales
S000
June 2005
SAP AG and
Distribution Channel
Identifies how products and services reach
the customer
Can be assigned to one or more Sales
Organizations
June 2005
SAP AG and
(continued)
Retail Dist
Channel (RE)
Wholesale Dist
Channel (WH)
US Sales
S000
June 2005
SAP AG and
Division
Often times used to define product line
distribution
Organization level to which customer
specific information and requirements are
maintained (e.g. pricing, partial delivery)
Assigned to one or more Sales
Organizations
June 2005
SAP AG and
Division
(continued)
Medical Division Chemical Division
US Sales
S000
June 2005
SAP AG and
Sales Area
Sales Area comprised of:
Sales Organization
Division
Will be used to link together the
organizational aspects of sales to
customers
Used for statistical analysis
June 2005
SAP AG and
Sales Area
(continued)
Retail Dist
Channel (RE)
Wholesale Dist
Channel (WH)
US Sales
S000
Medical
Division
Chemical
Division
Medical
Division
Chemical
Division
June 2005
SAP AG and
Sales Area
(continued)
Retail Dist
Channel (RE)
Wholesale Dist
Channel (WH)
US Sales
S000
Medical
Division
Chemical
Division
Medical
Division
Chemical
Division
June 2005
SAP AG and
Internal Sales Organization
Typically defines a territory or market
Linked to one or more Sales Areas
Optional organization structure
June 2005
SAP AG and
Sales Office
Eastern Sales Western Sales
US Sales
S000
June 2005
SAP AG and
Sales Group
Sales Group
Sub-division of a sales office, territory or market
June 2005
SAP AG and
Sales Person
Sales Person
Defined in Human Resources (HR)
Personnel Admin.
Specifically defines an individual rather than a
position (sales rep.) in sales processing
Integration Sales and Distribution (SD)
June 2005
SAP AG and
Internal Sales Organization
Eastern Sales Western Sales
US Sales
S000
Northeast
Sales Group
Southeast
Sales Group
Northwest
Sales Group
Southwest
Sales Group
Salesperson
1
Salesperson
4
Salesperson
3
Salesperson
6
Salesperson
5
Salesperson
8
Salesperson
7
Salesperson
2
June 2005
SAP AG and
Shipping and Loading Points
Shipping Point
Location that performs all delivery related
activities
Assigned a factory calendar
A delivery can be processed from only one
shipping point
Loading Point
A subdivision of the shipping point used for
more specialized handling
June 2005
SAP AG and
Shipping Organization
Plant
P000
Freight Dock
FD00
Express Dock
ED00
Rail Dock
RD00
Loading
Point 3
Loading
Point 2
Loading
Point 1
Loading
Point 4
Unit 14
- Master Data -
June 2005
SAP AG and

June 2005
SAP AG and
Master Data
Vendor Master Data
Before making the Master Data

June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Master Data Core Elements
Integration

Material

Custome
r

Pricing
Master
Data
June 2005
SAP AG and
Material Master
Sales Views
Sales: sales org. 1
Sales: sales org 2
Sales:
general/plant
Foreign trade
export
Sales: text

Barrel Pen
June 2005
SAP AG and
Material Master
Sales: Sales Org. 1 View
General Data
Base Unit of Measure
The Base Unit of Measure is the unit of measure in which
stocks are managed within your company.
Division
You may enter the Division which your product is in for
sales (defaults if entered in the Basic data screen).
Material Group
A key thats used to group several materials or services for
analysis/reporting as well as search by match code.
Sales Unit
The unit of measure in which the material is sold, if left
blank then uses the base unit of measure.
June 2005
SAP AG and
Material Master
Sales: Sales Org. 1 View (continued)
General Data (continued)
Delivering Point
Plant from which the material is available for sale.
Cash discount
Indicator used for materials, which allow for a cash
discount.
Conditions
Pricing procedure for the material
Tax Data
Tax classification material
The indicator with which the system determines output tax
for the material when processing sales and distribution-
specific documents

June 2005
SAP AG and
Material Master
Quantity Stipulations
Minimum Order Quantity
Minimum quantity a customer may order.
Minimum Delivery Quantity
Minimum quantity that may be delivered to a customer
Delivery Unit
The delivery unit consists of a number and a unit of
measure. In the case of a delivery unit of 30 pieces, 30,
60, 90, and so on pieces can be delivered, but not,
however, 100 pieces.

June 2005
SAP AG and
Material Master
Sales: Sales Org. 2 View
Grouping Terms
Material Statistics Group
Determine which data the system updates in the logistics
information system
Material Pricing Group
A way of grouping materials to which you want to apply the
same conditions
Volume Rebate Group
Group definition used for rebate settlement.
General Item Category Group
Materials grouping that helps the system to determine item
categories during sales document processing.

June 2005
SAP AG and
Material Master
Grouping Terms
Item Category Group
A grouping of materials that the system uses to
determine item categories during the processing of
sales documents.
Commission Group
Commission group to which the material is assigned.
June 2005
SAP AG and
Integration
Material Master
Sales: General/Plant
General Data
Base unit
The unit of measure in which items are managed
in the company
Gross weight
Used to check storage capacity in warehouse
Net weight
Weight excluding packaging and extras this is
needed for sales and distribution
Available Check
Option to do an availability check for orders and
MRP
June 2005
SAP AG and
Integration
Material Master
Sales: General/Plant (continued)
Shipping Data (times in days)
Transportation Group
Group materials that have the same
transportation requirements. For example, bulk
stock materials
Loading Group
Loading groups define materials that have the
same loading requirements, such as forklift truck,
or crane.
June 2005
SAP AG and
Integration
Material Master
Sales: General/Plant (continued)
Packaging Material Data
Material group Pack Materials
Materials that require similar packaging materials

General Plant Parameters
Negative stock
Indicates if negative stocks of the material are
allowed at the plant
Profit Center
Identifies the profit center in the current
controlling area

June 2005
SAP AG and
Material Master
Sales Texts View
Sales Texts
Exchange of information throughout the logistics
chain
In sales and distribution, this exchange of
information is supported by texts in master records
and documents
You can define as many text types as you require
(sales texts, shipping texts, internal notes,
supplement texts etc.) for master records and
documents

June 2005
SAP AG and
Integration

Material

Custome
r

Pricing
Master
Data
June 2005
SAP AG and
Customer Master
Customer Master Data
is created by Sales
Area
Sales Organization
Division

US Sales
S000
Distribution
Channel - RE
Division - 01
Sales Area
June 2005
SAP AG and
Customer Master
(continued)
Integration
Customer 43
General Data
Company Code Data
Sales Data
June 2005
SAP AG and
Customer Master
A master record must be created for every
customer
General data, Company Code data (Financial
Accounting - FI), and Sales Org. data (Sales
and Distribution - SD)

Integration
Sales Org. data
Sales
Shipping
Billing
Partner Usage
Company Code data
Account Mgmt
Payment
transactions
Correspondence
General data
Address
Control data
Payment
transactions
June 2005
SAP AG and

Address
Customer Name
Search Term
Street address
City, Region Postal code
Country
Communication
Language
Telephone, Fax, E-Mail
Customer Master
June 2005
SAP AG and
Customer Master
General Data Control Data
Account Control
Vendor
Authorization
Trading partner
Group key
Tax Information
Tax codes
Fiscal address
Country code
City code
Reference Data / Area

June 2005
SAP AG and
Customer Master
General Data Payment Transactions
Bank Details
Country
Bank Key
Account holder
Bank Account
Control Key
Collection

June 2005
SAP AG and
Customer Master
General Data Marketing
Classification
Nielsen ID
Customer classification
Industry
Industry codes
Operating Figures
Annual sales
Number of employees
Fiscal year variant
Sales Prospecting
Legal status

June 2005
SAP AG and
Customer Master
General Data Unloading Point
Unloading Points
Unloading point
Default
Calendar key
Default Unloading Point
Goods receiving hours

June 2005
SAP AG and
Customer Master
General Data Foreign Trade
Export Data
Country key
TDO Date (Table of Denial Orders)
SDN Date (Specially Designated Nationals)
Boycott Date
Usage
Mainly civilian usage
Mainly military usage
Classification
Biochemical warfare
Nuclear nonproliferation
National security

June 2005
SAP AG and
Customer Master
General Data Contact Persons
Contact Person
Name
First name
Department
Function

June 2005
SAP AG and
Customer Master
Company Code Accounting Information
Rec. Account
Sort key
Head office
Interest Calculation
Interest indicator
Interest cycle
Interest calculation frequency in months
Last interest run
Reference Data
Previous account number
Buying group

June 2005
SAP AG and
Customer Master
Company Code Payment Transactions
Payment Data
Terms of Payment
Tolerance group
Automatic Payment Transactions
Payment methods
Payment block
Alternative payer
Grouping key
Lockbox

June 2005
SAP AG and
Customer Master
Company Code Correspondence
Dunning Data
Dunning procedure
Dunning block
Dunning recipient
Correspondence
Accounting clerk
Acct at customer
Customer user
Payment Notices To
Customer
Sales
Accounting
Legal

June 2005
SAP AG and
Customer Master
Company Code Insurance
Export Credit Insurance
Policy Number
Institution Number
Amount Insure
Valid Until
Lead Months
Deductible

June 2005
SAP AG and
Customer Master
Sales and Distribution Sales
Sales Order
Sales District
Sales Office
Sales Group
Order Probability
Item Proposal
Pricing / Statistics
Price Group
Customer Pricing Procedure
Price List Type
Customer Statistical Group

June 2005
SAP AG and
Customer Master
Sales and Distribution Shipping
Shipping
Delivery Priority
Shipping Conditions
Delivering Plant
Order Combination
Partial Delivery
Complete Delivery Required By Law
Partial Delivery per Item
Max Part Deliveries
Under-delivery Tolerance
Over-delivery Tolerance
General Transportation Data
Transportation Zone

June 2005
SAP AG and
Customer Master
Sales and Distribution Billing
Billing Section
Subs. Invoice Processing
Rebate
Price Determination
Invoicing Dates
Invoice List Dates
Delivery and Payment Terms
Incoterms
Payment Terms
Accounting
Account Assignment Group
Taxes
Tax Classification

June 2005
SAP AG and

Customer Master
Sales and Distribution Partner Functions
Partner(interlocutor) Functions
Partner Function (PF)
Number
Partner Description

Sample Listing of Partner Functions Types
SP Sold-to-party
BP Bill-to-party
PY Payer
SH Ship-to-party
June 2005
SAP AG and
Business Partners
Defines all of the parties involved in a business
transaction
Differentiates between their roles
Customer
Carrier
Employees
Etc.
June 2005
SAP AG and
Business Partners
The system will automatically assign a
business partner to the customer master and to
any transaction
There are four default business partner
Sold-to
Ship-to
Bill-to
Payer
They may be the same or different.
More business partners can be added to carry
out additional business transactions
June 2005
SAP AG and
Customer Account Group
Customer masters are assigned to a customer
account group
Through field status maintenance, account
groups can be setup for one-time customers,
regional customers, internal
The customer account group controls both type
and number range assignment for customers
June 2005
SAP AG and
Field Status
Field status controls the use of each field
within the customer master determining
whether a field is required, optional,
suppressed or display only
Field status controls are also relevant to a
specific activity create, change, or display
June 2005
SAP AG and
Business Partners
Sold-to Party
Customer who orders
Can default for all
partner functions
sold-to, ship-to, payer,
bill-to
Primary type of
business partner
Independent and
cannot be linked to
other sold-to partners
Sold-to
Ship-to
Bill-to
Payer
June 2005
SAP AG and
Business Partners
Ship-to Party (continued)
Receive delivery
Can be linked to
more than one
sold-to address
Sold-to
Ship-to
Bill-to
Payer
June 2005
SAP AG and
Business Partners
Bill-to Party
Partner who is
delivered the
invoice
Can be linked to
more than one
sold-to address
Sold-to
Ship-to
Bill-to
Payer
June 2005
SAP AG and
Business Partners
Payer
Partner who pays
the bill
Can be linked to
more than one
sold-to address
Sold-to
Ship-to
Bill-to
Payer
June 2005
SAP AG and
Single and Multiple
Ship-to Parties
Single ship-to
Multiple ship-tos
Single payer
Payer: 10 Bill-to: 10 Ship-to: 10
Sold-to: 10
Payer: 10 Bill-to: 10 Ship-to: 10
Sold-to: 10
Ship-to: 11
June 2005
SAP AG and
Business Partners
Sold-to
Bill-to
Payer
Ship-to
Ship-to
Ship-to
Ship-to
Ship-to
Ship-to
Sold-to
Unit 15
- Master Data -
June 2005
SAP AG and
June 2005
SAP AG and
Master Data
Master Data is relatively fixed
Vendor Master Data
Before making the Master Data

June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Integration

Material

Custome
r

Pricing
Master
Data
June 2005
SAP AG and
Pricing
Highly touted world-class functionality
Very easily tailored to meet business
needs
A very robust module in SAP
Gross to net pricing for material

June 2005
SAP AG and
Standard Pricing Process
Standard Pricing
Calculates the gross price
Then applies
Discounts
Surcharges
Applicable Taxes
Calculates the final price
Final price = gross price - discounts +
surcharges + taxes
June 2005
SAP AG and
Cost-Plus Pricing Process
Cost-plus pricing
Captures the base cost
Then applies
Markup
Discounts
Surcharges
Applicable Taxes
Calculates the final price
Final price = cost + markup - discounts +
surcharges + taxes

June 2005
SAP AG and
Pricing Components
Pricing uses tables to match the condition
of order to the applicable pricing routine
These routines can
Add/Subtract amounts, percentages
Give dollar, weight, quantity breaks/additions
Accrue

June 2005
SAP AG and
Pricing Procedure
Pricing uses one of possibly many
procedures based upon
Item
Customer
Order type
Sales Area
The procedure will then apply
Prices (Gross)
Discounts & Surcharges
Freight
Taxes

June 2005
SAP AG and
Pricing Procedure
(continued)
Pricing conditions for each item on the
order
Pricing condition uses
Pricing procedure
Access sequence
Conditions type
Determines adjustments and price

June 2005
SAP AG and
Line Item in
Sales Order
Pricing Procedure
Determination
Pricing Procedure
Contains List of
Condition Types
Condition Types
Point to
Access Sequence
Access Sequence
Provides the Search
Order for Pricing
Sales Area
S000-RE-01
Doc. Pric.
Proc.
OR=A
Cus. Pric.
Proc.
43 = 1
PPEN000
Condition Type PR00 = Price
Access Sequence PR02 = Price
10 Customer/material
20 Price list cat./currency/material
30 Material

30 Material Price = $9.50
Pricing Procedure = RVAJUS
Pricing Process
June 2005
SAP AG and
Sales
Org.
Dist.
Chan.
Div
Doc.
PP
Cust.
PP
Price
Prod.
0001 01 01 A 1 RVAA01
0001 01 01 A 2 RVAB01
0001 01 01 B 1 RVWIA1
0001 01 01 C 1 RVCA01
S000 RE 01 A 1 RVAJUS
S000 WH 01 A 1 RVAJUS
Price
Prod. Ctyp Description
Acces
seq.
RVAJUS PR00 Price PR02
PB00 Price (Gross)
KA00 Sales deal K305
K007 Customer Discount K307
K004 Material K304
K005 Customer/Material K305
Access
Seq.
Access
No. Description
PR02 10 Customer/material with release status
20 Price list cat./cur/mat with rel status
30 Material with release status
K305 10 Customer/material with release status
K307 10 Customer with Release Status
K304 10 Material with release status
Line
Item
Pricing
Proced.
Det.
CTyp
points to
Access Seq.
Access Seq.
points to
Cond. Tbls.
Cond. Tbls.
contain the
Item Pricing
PPEN000
Sales Area
Doc. PP
Cust. PP
PR00
Points to
PR02
PR02
Points to
Cond. Tables
Cust. / Mat.
Price List / Cur / Mat.
Material
N / A
N / A
$ 9.50
June 2005
SAP AG and
Price Agreements
Standard price
agreements
Product
Customer
Customer &
material
Customer group &
material group
Detailed price
agreements
Pricing scales
Rebates
Customer
expected price
June 2005
SAP AG and
Credit Limits and Checking
Define automatic credit limit checks to your
companys requirements
You can also define at what point the system
carries out these checks (order, delivery,
goods issue, and so on)
A credit representative is automatically
alerted to a customers critical credit situation
as soon as order processing starts
Employees can be automatically notified of
critical credit situations via internal mail
June 2005
SAP AG and
Credit Limits and Checking
(continued)
Credit representatives are able to check a
customers credit situation to decide
whether the customer should be granted
credit
Works in distributed systems
Central financial accounting
Non-central sales and distribution on several
sales and distribution computers
June 2005
SAP AG and
Credit Check
You can use this function at any time
within service processing to call up
information about the current credit status
of a customer
Credit limit can be checked manually or
automatically
The system generally checks the planned
costs without tax
If a customer has exceeded their credit
limit, the system issues a warning
June 2005
SAP AG and
Credit Check
(continued)
The checks can be carried out at various
times during the sales order cycle, from
order receipt to delivery
You can define a credit check for any valid
combination of the following data:
Risk category
Document credit group
Credit control area

Unit 16
- Rules -
June 2005
SAP AG and
R
u
l
e
s

SD
June 2005
SAP AG and
Rules
and Transactions
and Transactions
Relatively fixed
June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Assign Sales Area to Pricing Procedure
Pricing Procedure Assignment uses a
combination of:
Sales Area
Document Pricing Procedure
Customer Pricing Procedure

Each combination of these has a pricing
procedure assigned
June 2005
SAP AG and
Availability Check
In determining the material availability date
the system can include specific stocks if
selected, such as:
Safety stock
Stock in transfer
Quality inspection stock
Blocked stock
Restricted use stock
All movements of stock

June 2005
SAP AG and
Credit Checking
Static Credit Limit Check
Open Orders
Open Deliveries
Open Billing documents
Open Items (accounts receivable)
Dynamic credit limit with credit horizon
check (future dates)
Credit check to maximum document value
(per order)

June 2005
SAP AG and
Shipping Functions
Shipping Point Determination
The shipping point is selected for each line
item based on the shipping point determination
process
Shipping point based on:
Shipping condition
Loading group
Delivering plant
June 2005
SAP AG and
Shipping Functions
(continued)
Route Definition
Delivery method and the transit time
Dummy routes can be used to easily define
transit time
Route Determination
Proposed route is chosen using
Shipping point
Destination country
Transportation zone
Shipping condition
June 2005
SAP AG and
Revenue Assignment Determination
Transfers billing values from the Sales and
Distribution to Finance
Used to recognize revenue
Keys used to allocate revenue to the
proper account
June 2005
SAP AG and
Defines the G/L accounts that billing
entries are posted to revenue, sales
deductions, surcharges, freight charges,
etc.
Application
V
Sales
Condition
Type
KOFI
Condition
Tables
Chart of
Accounts
C001
Sales
Document
Sales
Organization
S001
Sales
Document
Customer
Account Group
01
Customer
Master
Account
Key
ERL
Pricing
Procedure
General Ledger
Account
600999
Chart of
Accounts
Unit 17
- Transactions -
June 2005
SAP AG and
SD
June 2005
SAP AG and
Transaction Data

June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Document Types
Inquiry Quotation Returns Contract
Sales Order Cash Sales Consignment
Scheduling
Agreement
Rush Order Debit Memo
Returnable
Packaging
Credit
Memo
June 2005
SAP AG and
Order Processing Functionality
Delivery scheduling
Availability check
Transfer of requirements to Material
Requirements Planning
Pricing
Credit check
Shipping point and route determination
Foreign trade and license processing
Document flow
June 2005
SAP AG and
Delivery Scheduling
Automatic scheduling of essential shipping
activities
Calculated using defined activity times
Resulting in scheduled activity dates
Determined using backward and forward
scheduling rules
June 2005
SAP AG and
Delivery Scheduling
(continued)
Structure of sales documents
Header
Line Item # 1
Line Item # 2
Schedule Line # 1
Schedule Line # 1
Schedule Line # 2
June 2005
SAP AG and
Delivery Scheduling
Terminology
Transportation lead time
Time required to schedule transportation
Pick/Pack time
Time required for picking and packing
Load time
Time required to load
Transit time
Time required to transport goods from shipping
point to ship-to
June 2005
SAP AG and
Backward Scheduling
Requested
Delv. Date
Goods
Issue

Loading
Material
Availability
Order
Date
Transp.
Sched.
Transit
Time
(2 days)
Loading
Time
(1 day)
Pick & Pack
Time
(2 days)
Transp.
Sched.
Time
(1 day)
2nd 3rd 4th
5th
6th 1st
June 2005
SAP AG and
Forward Scheduling
Transit
Time
(2 days)
Loading
Time
(1 day)
Transp.
Sched.
Time
(1 day)
New
Delv.
Date
1st 3rd 4th 5th 6th 2nd
Pick & Pack
Time (2 days)
7th
Requested
Delv.
Date
Goods
Issue
Loading
Material
Availability
Order
Date
Transp.
Sched.
June 2005
SAP AG and
Availability Check
Determines the material availability date
Considers inward and outward movement
of inventory customizable
Influences partial deliveries by
Proposing a quantity that can be delivered on
the requested date (complete delivery)
Determines earliest date for full delivery
Determines the number and dates for partial
deliveries to fulfill the order
June 2005
SAP AG and
Availability Check
(continued)
In determining the material availability date
the system can include specific stocks if
selected, such as:
Safety stock
Stock in transfer
Quality inspection stock
Blocked stock
Restricted use stock
All movements of stock

June 2005
SAP AG and
Transfer Requirements to
Ordered quantities are passed to Material
Requirements Planning
Controlled by the schedule line category
Blocking of documents can affect
requirements passing delivery block
June 2005
SAP AG and
Pricing
Highly touted world-class functionality
Very easily tailored to meet business
needs
A very robust module in SAP
Gross to net pricing for material

June 2005
SAP AG and
Credit Check
Efficient means to implement credit
management
Integrated with Financial Accounting (FI) -
- Via credit control area
Automatically alerts when a credit check
fails
Comprehensive credit management
reporting
June 2005
SAP AG and
Shipping Point and Route Determination
A shipping point is determined for each
line item shipping point determination
A delivery can only be processed from one
shipping point
Routes - route to be traveled & transit time
are determined using customized rules
Routes can be used to simply define
transit time
June 2005
SAP AG and
Foreign Trade and License Processing
Predefined trade areas NAFTA, EU
Automated reporting for trade areas
Automated controls
License management
Embargo lists
Control by customer, country, product, point in
time
June 2005
SAP AG and
Document Flow
The document flow feature allows you to
find the status of an order at any point in
time. The SAP system updated the order
status every time a change is made to any
of the documents created in the customer
order management cycle (Order to Cash).

Unit 18
- Transactions -

June 2005
SAP AG and
SD
June 2005
SAP AG and
Transaction Data

June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Material Listing
and Exclusion
Inclusions or exclusions (availability) of
material for a customer or a customer
group
Material Listing products that can be
sold
Material Exclusion products that cannot
be sold
June 2005
SAP AG and
Product Substitution
Material Determination
Substitution of materials during sales order
processing
Automatic
Manual
Examples:
Substitute a standard product with an
appropriate replacement material
Substitute based on a customer preference
Substitute based on selection list (manual)
June 2005
SAP AG and
Customer Material Info Record
Data on a material defined for one specific
customer is stored in the customer
material information records
Customer-specific material number
Customer-specific material description
Customer-specific data on deliveries and
delivery tolerances

Unit 19
- Transactions -

June 2005
SAP AG and
SD
June 2005
SAP AG and
Transaction Data

June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Scheduling Agreements
Defines specific product quantities and
delivery dates for a customer
Schedule lines and processed through
standard delivery processing
Availability check is performed during
creation and quantities are passed to MRP
System automatically updates delivered
quantities
June 2005
SAP AG and
Scheduling Agreements
(continued)
Delivery
02/10 150
Delivery
05/10 150
Delivery
08/10 150
Delivery
11/10 300
Scheduling
Agreement

Date Qty
02/15 150
05/15 150
08/15 150
11/15 300
Unit 20
- Transactions -

June 2005
SAP AG and
SD FI
MM
June 2005
SAP AG and
Transaction Data

June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Item Proposal
Frequently occurring combinations of
material and quantities used by a
customer
System can suggest the item proposal
during order entry
Transferred into a sales order document
Selected from a selection list
Can be assigned to more than one
customer master records

Unit 21
- Transactions -

June 2005
SAP AG and
SD FI
MM
June 2005
SAP AG and
Transaction Data

June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Shipping Overview
Comprehensive functionality to support
picking, packing and loading functions
Work list and deadline monitoring
Functions with backorder processing
Tightly coupled to the MM and FI modules
Facility for transportation management

June 2005
SAP AG and
Shipping Overview
(continued)
Order
Combination
Order 1
Order 2
Order 3
Delivery 812
Partial
Delivery
Order 4
Delivery 813
Delivery 814
Delivery 815
Complete
Delivery
Order 5
Delivery 816
June 2005
SAP AG and
Shipping Overview
(continued)
Delivery creation activities
checks order and materials to determine if a
delivery is possible
delivery block, incompleteness
confirms availability
confirms export/foreign trade requirements
determines total weight & volume
June 2005
SAP AG and
Shipping Overview
(continued)
Delivery creation activities
generates packing proposal
considers partial deliveries
updates route assignment
assigns picking location
determines lot batches
updates sales order: status, delivery qty
June 2005
SAP AG and
Delivery Notes
Initiates the delivery process
Control mechanism for the process
Changes to delivery are allowable -
products, quantities
Picking
Packing
Loading
Post Goods Issue
Delivery
Note
Each step in
the delivery
process
updates the
delivery
note status
June 2005
SAP AG and
Delivery Due List
Produces a work-list of deliveries
Encompasses deliveries and transfers
Can be scheduled to run in batch
Automatically combines deliveries
June 2005
SAP AG and
Picking
Quantities based on delivery
Assigned date when picking should begin
Automated storage location assignment
Supports serial number tracking and batch
management
Integrated with Warehouse Management
(WM)
June 2005
SAP AG and
Packing
Identifies which packaging is to be used
for specified products
Identifies and updates accounts
associated with returnable packaging
Tracks the packed product by container
Insures weight/volume restrictions are
enforced
June 2005
SAP AG and
Goods Issue
Event that indicates the change in
ownership of the products
Reduces inventory
Automatically updates the G/L accounts
Ends the shipping process and prevents
changes to the shipping documents
June 2005
SAP AG and
Integration
General Ledger
Goods Issue
(continued)
Cost of Goods Sold
1000
Debit Credit
Inventory
1000
Debit Credit
June 2005
SAP AG and
Billing Overview
Automated invoicing based on sales
orders and/or deliveries
Functionality for processing credit/debit
memos and rebates
Integration with Financial Accounting (FI)
and Controlling (CO)
Updates customers credit data
Can create pro forma invoices
June 2005
SAP AG and
Billing Overview
(continued)
Integration
Sales Invoice

Sold To:
Rushmore Group

Sales Org: S001
Dist Channel: RE
Division: 01

Conditions/Price:
$500
General Ledger Account Assignment

Debit Credit
Customer A/R Recon
500
Revenue
Debit Credit Debit Credit
500 500
June 2005
SAP AG and
Billing Methods
Collective
Invoicing
Delivery based
Invoicing
Delivery 834
Delivery 833
Order 14
Order 9
Delivery 856
Invoice 968
Order 6
Delivery 820
Delivery 821
Invoice 945
Invoice 946
Split
Invoicing
Order 32 Delivery 886
Invoice 992
Invoice 991
June 2005
SAP AG and
Billing Plans
Periodic total amount for a planned
billing period
Milestone distributing the total amount
over multiple billing dates - typically used
with the project system (PS)
Installment evenly proportioned
amounts and defined payment dates
Resource related consumed resources
such as service or consulting
June 2005
SAP AG and
Billing Documents
Explicitly specify documents
Billing due list builds a work list of
invoices that should be generated
Automatic posting to Financial Accounting
(FI)
Unit 22
- Transactions -

June 2005
SAP AG and
SD FI
MM
June 2005
SAP AG and
Transaction Data

June 2005
SAP AG and
R/3
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.
June 2005
SAP AG and
Customer Return
Customer Return
Order received
Integration
Goods
Receipt
Create
Credit Memo
Quality
Inspection
Payment
to Customer
Delivery
Note
June 2005
SAP AG and
Customer Return
(continued)
1
2
3
Order 14 Delivery 856
Return Order Return Delivery
Invoice 968
Payment Credit Memo
Quality
Inspection
Return to Inventory
June 2005
SAP AG and
Customer Return
(continued)
Returns document
Billing block can be proposed
Use the Order reason field to identify the
reason for the return
Full access to pricing and ability to re-price
Return delivery
Issues a goods receipt to place material into
inventory
The End!

Bpi - Sap 2011

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Business Process Integration I

The Rushmore Group, LLC

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