04/29/00 SAP Functional

John Tullis
DePaul Instructor
john.d.tullis@us.arthurandersen.com

Copyrighted material
John Tullis page 1
12/13/2017
 SAP

SAP Architecture
Business SD FI Business
Sales & Financial
processes Distribution Accounting Engineering
MM CO
Materials
Mgmt. Controlling
PP AM
Production

R/3
Fixed Assets
Comprehensive Planning Mgmt. Client / server
functionality architecture
QM
Quality
Client / Server PS
Project
Designed
for all types
Manage-
ment PM ABAP/4 WF
System
Open
Plant Main- Workflow systems
of business tenance
HR IS
Human Industry
Resources Solutions

Over 5,000
Multinational installations around
the world
Copyrighted material
John Tullis page 2
12/13/2017
 SAP

SAP Logistics - SCM

Supply Distribution C
U
S
T
O
M
E
R

Continuous Replenishment Program (CPR)

Vendor Managed Inventory (VMI)
Efficient Consumer Response (ECR)

Copyrighted material
John Tullis page 3
12/13/2017
 SAP

SAP Logistics - SCM

Procure- Production Distribution
S ment C
U U
P S
P T
L O
I M
E E
R R

Service Management

Copyrighted material
John Tullis page 4
12/13/2017
 SAP

SAP Logistics - SCM

All business processes throughout the supply chain are
executed in one system sharing all information

Open Information Warehouse

S C
U U
P S
Procurement Production Distribution
P T
L MM PP SD O
I M
E Workflow
E
R R
FI Finance and Accounting CO

Copyrighted material
John Tullis page 5
12/13/2017
 SAP

SAP Logistics - SCM - Horizontal

Supply Chain Management is integrated
nationwide and even worldwide

Production Plant

Warehouse

Distribution Center
Copyrighted material
John Tullis page 6
12/13/2017
 SAP

SAP Logistics - SCM - Centralized

One R/3 System for all

R/3 countries and regions
multi-lingual

multi-currency
MM PP SD multi-plant
CO FI
multi-company

Copyrighted material
John Tullis page 7
12/13/2017
 SAP

SAP Logistics - SCM - Decentralized

Decentral Execution Central Information and
Planning

R/3
MM PP SD
R/3
CO FI Sales information
Profitability analysis
R/3 A
Inventory information
MM PP SD
Purchasing information
R/3 CO FI
L
Forecasting
MM PP SD
Sales and operations planning
CO FI E

Copyrighted material
John Tullis page 8
12/13/2017
 SAP

SAP Logistics Modules PP

PS

Customers Sales and operations Project

SD
planning networks
Sales
Shipping Demand management/
Invoicing Master production
scheduling PM
Plant
Material requirements Maintenance
planning - repairs
- maintenance
MM Capacity
Purchasing requirements
planing QM
Warehousing
Invoice Inspection
verification Production control
planning &
Vendors Costing management
Information system

Financial Cost Asset Human

Accounting Accounting Accounting Resources

Copyrighted material
John Tullis page 9
12/13/2017
 SAP

SAP Materials Management Business Processes

Financial Controlling

Resource Controlling Capacity, Materials, Production & Test Equipment

Sales & Customer

Distribution order Shipping Invoicing

Production Availa- Production Capacity Production

Production
bility plan requirements Planned
order order
activity
check generation planning control

Purchase Vendor Release Goods Invoice

Purchasing requisition selection order receipt verification

QM

Logistic Controlling Sales, Production, Purchasing, Warehouse

Copyrighted material
John Tullis page 10
12/13/2017
 SAP

SAP Materials Management - Procurement

PS PM
Inquiry
Determination Create
Invoice
of material service
verification
requirements specifications

LV
OK
Acceptance
Bid invitation
of services
performed
LV
Entry of
services Entry of
Order
performed quotation

Purchase
order
monitoring Ordering
Vendor
selection
?
Copyrighted material
John Tullis page 11
12/13/2017
 SAP

SAP Materials Management - Procurement

Purchasing Sales
Inquiry

Offer

Purchase order

Purchase order confirmation

Purchase order change

Confirmation of change

Invoice

Copyrighted material
John Tullis page 12
12/13/2017
 SAP

SAP Procurement Quality Assurance

Vendor Purchase Goods
Inquiry order Production
selection receipt

Technical terms Technical terms of delivery

of delivery Quality assurance agreement

Vendor evaluation Inspection: incoming goods & production

- Quality - Quality messages, complaints
- Price behavior - Stock in quality inspection & blocked stock
- Vendor's quality management system - Sample inspection
- Vendor block - Usage decision for inspection lot
- Quality score calculation

Vendor rating
Copyrighted material
John Tullis page 13
12/13/2017
 SAP

SAP Warehouse Logistics

Goods receipt Production Shipping

Quality inspection Production warehouse Picking

Special stock Batch management Batch determination
STORAGE LOCATION
Stock placement &
Production storage bin Means of transport
removal strategy
Pallets Warehouse control unit
Transfer orders
STORAGE LOCATION MANAGEMENT
Copyrighted material
John Tullis page 14
12/13/2017
 SAP

SAP Warehouse Control

SD MM
PP

Goods receipt Goods issue

Transfer requirements

WM

Transfer orders

Confirmation

Physical inventory

Copyrighted material
John Tullis page 15
12/13/2017
 SAP

SAP Warehouse Management

automatic generation of transfer orders
additional capacity optimization functionality
enhanced performance control using LIS
support shelf life expiration dates
integration to PP, QM
certifiable interfaces to warehouse control technologies
support customer individual requirements
major performance enhancements

Copyrighted material
John Tullis page 16
12/13/2017
 SAP

SAP Warehouse Management

Definition and management of

complex warehousing structures complex storage area
Stock placements, stock
removals and stock transfers MM WM SD
Inventory at the storage bin level
As a decentralized system
Interface to warehouse control HOST WM
technology
WM WCU

Copyrighted material
John Tullis page 17
12/13/2017
 SAP

SAP Materials Management Organization

Corporate group 001

Company code 0001 0002

Valuation level 0001 0002 0003

Purchasing organization 1000 2000

Sales organization 3000 4000

Plant 0001 0002 0003 0004 0005

Warehouse 0001 0002 0003

Storage bin 100-1 100-2 100-3 100-4

Copyrighted material
John Tullis page 18
12/13/2017
 SAP

SAP Sales SALES

MM Materials Management

& SUPPORT PM
PP Production Planning
Plant Maintenance
Distribution FI
CO
Controlling
SALES Financial Accounting
PS
MASTER Project System
DATA
MM
Materials Management
SHIPPING
FI Financial Accounting

FI
Financial Accounting
BILLING
CO Controlling

DATA
WAREHOUSE

Copyrighted material
John Tullis page 19
12/13/2017
 SAP

SAP Sales & Distribution

Sales Support Sales
activity
SALES INFORMATION

Sales Inquiry

MANAGEMENT
MATERIALS
Quotation Contract

Delivery Subsequent Sales Scheduling

USD free of delivery free Returns
order agreement
charge of charge

Shipping
Delivery
SYSTEM

Billing
Debit memo Invoice Credit memo

FINANCIAL ACCOUNTING
Copyrighted material
John Tullis page 20
12/13/2017
 SAP

SAP Financials
Quality Risk

COST ROI

Time Liquidity
SD MM PP CO IM TR-CM TR-TM

Financial Accounting
Copyrighted material
John Tullis page 21
12/13/2017
 SAP

SAP Financials
Open Information Warehouse
analytical

PP
SD MM HR CO IM CM TM

A/P Payrolls/ Recon- Fixed Bank Financial

A/R Material Travel ciliation assets accounts assets
Ledger expenses Ledger

Financial
Accounting General Ledger operational

Copyrighted material
John Tullis page 22
12/13/2017
 SAP

SAP Financials - Activity Based Cost Management

Cost centers /
Processes Resource
Quantity centers
x Standard
... Price consumption
rate

Actual

Plan
+ Analytical cost planning Proces
based on usage factors Quantity s
Standard
x consumption
Price rate
+ What if analysis
Products
+ Make overhead areas Quantity Standard
more transparent x
Price consumption
rate
+ Analytical and operational Profitability
ABC in parallel Analysis
Copyrighted material
John Tullis page 23
12/13/2017
 SAP

SAP Financials - Determining Profitability

Business risks
Warranty
Cash discounts
Product
Payment Revenue 1
Revenue 2
Billing Geography
Product costs 1
Product costs 2
Delivery Customer
Agency fee
Processing costs 1
Order
Distribution
Processing costs 2
Channel
Quotation
Operating profit

Copyrighted material
John Tullis page 24
12/13/2017
 SAP

SAP Financials - Calculating ROI

Capital Budget : Preparation IM
Generating investment proposals
Project evaluation

Budget Release IM
Project selection
Investment "portfolio"

Budget Execution IM CO PS
Processing Activities projects

Settlement orders

Fixed Asset Management

Copyrighted material
John Tullis page 25
12/13/2017
 SAP

SAP Financials - The Modules

EIS
Information Warehouse
Group EC
accounting
TR FI CO

TREASURY ACCOUNTING CONTROLLING

Funds Center Company code Profitability
Business area Center
Cash flow Assets and liabilities Profitability
Risk Mgmt ... Costs
... ...
IM
Capital investment & financing Return on investment
Copyrighted material
John Tullis page 26
12/13/2017
 SAP

SAP Human Resources - Hiring Process (ex.)

Notice, parental leave, transfer, long-term illness

Personnel requirement

Advertisement of a vacancy

Transfer Application processing

Hiring

Individual training

End

Copyrighted material
John Tullis page 27
12/13/2017
 SAP

SAP Human Resources - Hiring Process (ex.)

Job advertisement required

Evaluation of tasks and requirements

Internal job advertisement

Job applications arrive (deadline)?

Yes No

Internal analysis of potential Is it necessary to advertise

the job externally?
Unsuitable Suitable Yes No

Job interview External job advertisement

Negative Positive Job applications arrive (deadline)?

Yes No

Transfer Application processing

Copyrighted material
John Tullis page 28
12/13/2017
 SAP

General Business Needs - Utility Industry

Copyrighted material
John Tullis page 29
12/13/2017
 SAP

SAP Modules - Utility Industry

Copyrighted material
John Tullis page 30
12/13/2017
 SAP

Process Industries
Process Semi
industries conductors

Pharmaceutical

Chemical
Food &
Beverage

Copyrighted material
John Tullis page 31
12/13/2017
 SAP

SAP - Production Planning Module for PI

PP - BD
Basic Data
PP - MPS
SD FI
Master Prod. Scheduling
PP - MRP MM CO

Mat. Rqmts. Planning PP AM

PP - CRP R/3
Capacity Rqmts. Planning QM
Client / Server PS
PP - SFC ABAP/4
PM WF
Shop Floor Control
HR IS
PP - PI
Process Industries
PP - PC
Product Costing
PP - IS
Production Info System
Copyrighted material
John Tullis page 32
12/13/2017
 SAP

SAP - Functionality needed for Process Industry

Batch, quality, prod. tracking Product Batch selection via customer
Charge & yield calculation design specification
Co/by-product processing certificate of analysis generation
Links to PCS/PI sheet
Production Info. Mgt
EBR Production Distribution

Supplier Purchasing Sales Customer

Vendor specifications Production Customer quality

Vendor performance history planning specifications
Vendor classification Configurable orders
Multi-plant master
scheduling
Batch size calculation

Inventory
control
Copyrighted material
John Tullis page 33
12/13/2017
 SAP

SAP - the Petroleum IS-Oil Upstream functionality

Industry Acquisition Drilling Production
Functionality:

Joint Venture
Accounting
Materials
Management
Financial & Mgmt
Accounting
Property
Management
Project
Management
Maintenance &
Equipment Mgmt
Human
Resources Copyrighted material
John Tullis page 34
12/13/2017
 SAP

SAP - the Petroleum

IS-Oil Downstream functionality
Industry
Functionality: Acquisition/ Transport Manu- Storage/ Marketing
trade facturing distribution
Industry Solution
Materials Mgmt.
Financial Accounting
Controlling
Asset Management
Project System
Plant Maintenance
Human Resources
Quality Management
Production
Sales & Distribution Copyrighted material
John Tullis page 35
Workflow 12/13/2017
 SAP

The Petroleum Industry Supply Chain

Exchange
Gathering Contract
System Bulk
Producer Termin
Contract Supply al
Oil & Gas Pipeline Lubes Plant
Production Transfers, Sales
Sales, Contract
Purchases,
Exchange
Acquired Exchanges
Contract Product Pipeline
Pipeline Batches Refinery
Bulk
Purchase Termin
Contract al
Chemical
Plant Pipeline Retail Stations
Sales
Batches
Contract

Commercial Customers

Acquisition/ Transport Manufacturing Storage/

Marketing
trading Distribution

Copyrighted material
John Tullis page 36
12/13/2017