Sap Introduction

SAP : Systems,Applications and Products in data processing

FOREWORD

This manual can be used as a course material for SAP MM (Material management), PM(Plant maintenance) training.

The aim of this manual is to make you learn SAP MM (Material management), PM(Plant maintenance) and vendor creation. Use this manual as reference study material; it is also useful for other module users such as MM, PP, FI, etc. I do hope that this manual will make your learning SAP easier.

ASSUMPTION

It is assumed that you have –

1. Basic knowledge of computer that is MS Word, Excel, Power point, Internet and E-mail.

2. You have basic domain knowledge of material, plant maintenance and hierarchy  

ERP SOFTWARE IS THE LIFE BLOOD OF TODAY’S BUSINESS.

ERP is often described as a solution for business management and reporting to help organizations work at peak performance, but really it’s much more.  It is the life blood of a company providing automated work-flows and best practices to connect financial accounting, supply chain, HR and any other business systems where you need information access.  By integrating multiple line-of-business applications and making data available across the entire enterprise, ERP can help keep critical tasks on track and ensure consistent processes with automated notifications and alerts. This is the real value add for ERP, especially for small and mid-size businesses which need to stay ahead in today’s highly competitive marketplace.

THE LEADING ERPS IN THE MARKET ARE:

SAP USA, GERMANY, INDIA)

BAAN (DUCH)

ORACLE-E BUSINESS SUITE (USA)

JD EDWARDS (USA)

PEOPLESOFT (USA)

RAMCO (INDIA)

QAD INC (USA)

IBM (USA)

JBA HOLDING (USA)

WIPRO (INDIA)

MICRO ERP 2000 (INDIA)

REDIX INFOTECH (INDIA)

  

SAP BACKGROUND

In 1972, five former IBM employees — Dietmar Hopp, Hans-Werner Hector, Hasso Plattner, Klaus Tschira, and Claus Wellenreuther — launch a company called Systems, Applications, and Products in Data Processing in Mannheim, Germany. Their vision: to develop standard application software for real-time business processing. One year later, the first financial accounting software is complete, forming the basis for the continuous development of other software components in what later came to be known as the “R/1 system.” “R” stands for real-time data processing. By the end of the decade, intensive examination of SAP’s IBM database and dialog control system leads to the birth of SAP R/2. 

SAP R/3 is arranged into distinct functional modules, covering the typical functions in place in an organization. The most widely used modules are Financials and Controlling (FICO), Human Resources (HR), Materials Management (MM), Sales & Distribution (SD), and Production Planning (PP). Those modules, as well as the additional components of SAP R/3, are detailed in the next section.

Each module handles specific business tasks on its own, but is linked to the others where applicable. For instance, an invoice from the Billing transaction of Sales & Distribution will pass through to accounting, where it will appear in accounts receivable and cost of goods sold.

SAP has typically focused on best practice methodologies for driving its software processes, but has more recently expanded into vertical markets. In these situations, SAP produces specialized modules (referred to as IS or Industry Specific) geared toward a particular market segment, such as utilities or retail.

Using SAP often requires the payment of hefty license fees, as the customers have effectively outsourced various business software development tasks to SAP. By specializing in software development, SAP hopes to provide a better value to corporations than they could if they attempted to develop and maintain their own applications.

Technology

SAP R/3 is a client/server based application, utilizing a 3-tiered model. A presentation layer, or client, interfaces with the user. The application layer houses all the business-specific logic, and the database layer records and stores all the information about the system, including transactional and configuration data.

SAP R/3 functionality is structured using its own proprietary language called ABAP (Advanced Business Application Programming). ABAP, or ABAP/4 is a fourth generation language (4GL), geared towards the creation of simple, yet powerful programs. R/3 also offers a complete development environment where developers can either modify existing SAP code to modify existing functionality or develop their own functions, whether reports or complete transactional systems within the SAP framework.

ABAP’s main interaction with the database system is via Open SQL statements. These statements allow a developer to query, update, or delete information from the database. Advanced topics include GUI development and advanced integration with other systems. With the introduction of ABAP Objects, ABAP provides the opportunity to develop applications with object-oriented programming.

The most difficult part of SAP R/3 is its implementation, since SAP R/3 is never used the same way in any two places. For instance, Atlas Copco can have a different implementation of SAP R/3 from Procter & Gamble. Two primary issues are the root of the complexity and of the differences:

Customization configuration - Within R/3, there are tens of thousands of database tables that may be used to control how the application behaves. For instance, each company will have its own accounting “Chart of Accounts” which reflects how its transactions flow together to represent its activity. That will be specific to a given company. In general, the behavior (and appearance) of virtually every screen and transaction is controlled by configuration tables. This gives the implementor great power to make the application behave differently for different environments. With that power comes considerable complexity.
Extensions, Bolt-Ons - In any company, there will be a need to develop interface programs to communicate with other corporate information systems. This generally involves developing ABAP/4 code, and considerable “systems integration” effort to either determine what data is to be drawn out of R/3 or to interface into R/3 to load data into the system.
Due to the complexity of implementation, these companies recruit highly skilled SAP consultants to do the job. The implementation must consider the company’s needs and resources. Some companies implement only a few modules of SAP while others may want numerous modules.

SAP has recently recast its product offerings under a comprehensive Web interface, called mySAP.com, and added new e-business applications, including customer relationship management (CRM) and supply chain management (SCM).
As of January 2007, SAP, a publicly traded company, had over 38,4000 employees in over 50 countries, and more than 36,200 customers around the world. SAP is turning its attention to small- and-medium sized businesses (SMB). A recent R/3 version was provided for IBM's AS/400 platform.

AG Corporate

Headquartered in Walldorf, Germany, and with locations in

FREQUENTLY USED MODULES IN SAP

Financial Accounting (FI):

An important core module, designed for meeting all the accounting and financial needs of an organization. Within this module Financial Managers as well as other Managers within your business can review the financial position of the company in real time.
Controlling (CO): Represents the company’s flow of cost and revenue, offers all the support information needed by Management for the purpose of planning, reporting and decision making. Decision making can be achieved with a high level of information reducing drastically risks. Basically It is a management instrument for organizational decisions.

Sales & Distribution (SD):

The SAP sales and distribution is part of the logistics module that support your customers, starting from quotations, sales order and all the way towards billing the customer. It is tightly integrated with the MM (Material Management) and PP (Product Planning) functional modules. It allows companies to input their customer sales price, check for open orders and forecast etc.

Material Management: (MM):

Is the materials management module of the SAP. This module is used for Procurement Handling and Inventory Management. Materials management (MM) is integrated with other modules such as SD (Sales & Distribution), PP (Product Planning) and QM (Quality Management). Materials management is used for procurement and inventory management.

Product Planning (PP):

The purpose of PP&C (Production Planning and Controlling) is to ensure that manufacturing runs effectively and efficiently and produces products as required by customers. The Production Planning module of SAP takes care of Master data needed like Bill Of Materials, Routings and Work Centers and stores it in one separate component.

Quality Management (QM):

 Quality management is a method for ensuring that all the activities necessary to design, develop and implement a product or service are effective and efficient with respect to the system and its performance. Quality management is the comprehensive solution that supports the company throughout the product life cycle and along the supply chain.

Plant Maintenance (PM):
oriented to cover all maintenance activities, supporting the Planning, Programming and Implementation, with emphasis on the availability of equipment, staff costs and Assurance, guaranteeing so the state of the art of database and optimization. SAP’s Plant Maintenance comprises of the following activities such as inspection, to measures and establishes the actual condition of a technical system, preventive maintenance to measures and maintain the ideal condition of a technical system, repair to measures and restore the ideal condition of a technical system and other measures that need to be taken using the maintenance organization.

Human Resources (HR):

It deals with various activities done in the human resource department of an organization, such as, Personal administration, personnel development, training and event management, payroll etc. This module enables customers to effectively manage information about the people in their organization, and to integrate that information with ”other SAP modules” and external systems.

Project System (PS):

Created to support the planning, control and monitoring of long-term, highly complex projects with defined goals .Projects are generally part of the internal processes of a company. To be able to control all tasks in project execution, you need an organizational form that is specific to the project and which is shared by all departments involved.

PURPOSE IN MM &PM MODULE:

Order creation for material issue

Order closing when job over

MIV posting

Order review

Notification to generate

Notification closing

Fund centre , fund, cost centre  GL a/c

SES via order

PR creation –material

                     -service

                      Release

                       Change

                      Vendor code creation

 

APPLICATION OF SAP

1.      Accounting - General - AC

2.      Application Platform - AP

3.      BASIS - System Administration

4.      Business Warehouse - BW

5.      Controlling - CO

6.      Cross Application Basis Components - CA

7.      Customer Service - CS

8.      Enterprise Controlling - EC

9.      Enterprise Portal - EP

10.  Environment, Health and Safety - EHS

11.  Financial Accounting - FI

12.  Financial Services - FS

13.  Financials - FIN

14.  Governance, Risk and Compliance- GRC

15.  Incentive and Commission Management - ICM

16.  Industry Solutions - IS

17.  Investment Management - IM

18.  Knowledge Management- KM

19.  Logistics General - LO

20.  Logistics Execution - LE

21.  Master Data Management - MDM

22.  Materials Management - MM

23.  mySAP.com Workplace - WP

24.  Payroll - PY

25.  Personnel Management - PA (HR)

26.  Personnel Time Management - PT

27.  Plant Maintenance  -PM

28.  Product Lifecycle Management - PLM

29.  Production Planning and Control - PP

30.  Project Systems - PS

31.  Public Sector Management - PSM

32.  Quality Management - QM

33.  Real Estate Management - RE

34.  Sales and Distribution - SD

35.  Service - SV

36.  Supply Chain Management - SCM

37.  Training and Even Management - PE

38.  Treasury - TR

TRANSACTION CODES BY MODULE

(SD)-Sales & Distribution

(FICO)- Finance & Controlling

(MM)- Materials Management

(HR)- Human Resources

(QM)- Quality Management

(PM)- Plant Maintenance

(APO)- Advanced Planner & Optimizer

(PP)- Production Planning

(PS)- Project Systems

(BW)- Business Warehouse

(BASIS)- System Administration

FREQUENTLY USED TRANSACTION CODE IN PM AND MM MODULE:

TRANSACTION CODE

IW22 - Plant Maintenance -> Maintenance Processing -> Notification -> Change

IW28 - Maintenance Processing -> Notification -> List Editing -> Change

IW38 - Maintenance Processing -> Order -> Order List -> Change

YM15 - Inventory Management -> Reservation -> Print Reservation

MMBE - Inventory Management -> Environment -> Stock -> Stock Overview

IW33 - Plant Maintenance -> Maintenance Processing -> Order -> Display

IW33 - Service Processing -> Order -> Service Order -> Display

ML83 - Materials Management -> Service Entry Sheet -> Print/Transmit

IW32 - Plant Maintenance -> Maintenance Processing -> Order -> Change

ME22N - Materials Management -> Purchasing -> Purchase Order -> Change

ME23N - Materials Management -> Purchasing -> Purchase Order -> Display

ME51N - Materials Management -> Purchasing -> Purchase Requisition -> Create

ME2L - Purchasing -> Purchase Order -> List Displays -> By Vendor

ML81N - Logistics -> Materials Management -> Service Entry Sheet -> Maintain

ME53N - Materials Management -> Purchasing -> Purchase Requisition -> Display

YM11 - Purchasing -> Purchase Requisition -> Print -> Material

YM17 - Purchasing -> Purchase Requisition -> Print -> Services

ME2N - Purchasing -> Purchasing Documents -> Purchase Orders -> By PO Number

YMV - Vendor Creation / Extension Module

COMMUNICATION -

DEPARTMENT ABBREVIATIONS ARE GIVEN AS UNDER:

CI        Centralised / Inventory item,    OT        Others                  

CL        Maint-Civil              ,                PJ        Projects                

EC        Engg/Consul-Contract,             PN        Oper. & Production     

 EE        Maint-Electrical       ,               PU        Operations - P&U        

EO        Maint-Town/Estate     ,            QC        Quality Control         

ES        Eng. Services (All)      

FI        Finance                 

FS        Fire & Safety           

HR        HR / P&A                

IC        Inventory Control       

IN        Instrumentation         

IS        Information systems     

MA        Maint-All discipline    

MI        Maint & Inspection      

ML        Maint-Mainline          

MM        Materials Management    

MN        Maint-Mechanical        

MR        Marine                  

OH        Medical, OH & S         

OP        Operations