SAP INTRO

Introduction to SAP

Business without ERP Customer Calls to place order for a Car 1 Sales office/Inventory contacts PP 3 Sales office contacts Inventory 2 3 4 PP contacts Purchasing for raw material Purchasing Customers Production Planning Inventory Sales

Business without ERP (Contd..) Lets add some more Business Processes

Business without ERP (Contd..) Where is my car Whom to contact for status? What is this confusion What is Cost and profit What to manufacture?? Purchasing Customers Vendors Shop floor Production Planning Inventory Finance Sales

Lets Deliver the end product to customer.. Dear Sir, Your Order… I did not order for a TRUCK!!!! Sales

Business without ERP (Contd..) I AM NOT TAKING DELIVERY AND WILL NEVER DEAL WITH YOU! We are SORRY Sir Sales

Overall Picture Inventory Production Planning Purchasing Customers Vendors A/R A/P Shop Floor Execution General Ledger Sales

Why Enterprise Architecture

Why Enterprise Architecture ?

Numerous disparate information systems

Integrating the data becomes costly

Time

Money

Resources

Inconsistencies and duplication of data

Lack of timely information

Required: Central enterprise definitions

Required: Centrally controlled business change

Enterprise Structure – Integrating Business PP GL Plants Shop Floor Sales HR FA AP AR Purchasing Partner Systems Payroll Treasury Marketing Mfg.

Enterprise Architecture - Benefits

Eliminates the duplication, discontinuity and redundancy in data

Increases the return on investment made on IT implementations

Delivers quality information designed for the Enterprise as a whole

Faster and cheaper

Delivers quality information to produce a quality enterprise

Satisfying Partners/Customers

Reducing required manpower

E R P

Quiz Time

What is the full form of SAP?

When was SAP founded?

Quiz Time

What is the full form of SAP?

Systems Applications and Products in Data Processing

When was SAP founded?

Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira

Renamed in 1977

Before 1977 : Systems Analysis and Program Development (German : Systemanalyse und Programmentwicklung)

History of SAP

Systems Applications and Products in Data Processing

German : Systeme, Anwendungen, Produkte in der Datenverarbeitung

Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira

Renamed in 1977

Before 1977 : Systems Analysis and Program Development (German : Systemanalyse und Programmentwicklung)

SAP is both the name of the Company as well as their ERP Product

SAP system comprises of a number of fully integrated modules, which covers virtually every aspect of the business

Three systems developed : R/1, R/2, R/3

Steps to Strategic ERP

Enterprise Resource Planning is evolved through these stages …

Total Company Value Evolution of ERP Create Strategic Value Efficiency and Control Automation 80’s R/2 90’s R/3 Today mySAP ERP Inter-Enterprise Co-operation Enterprise Resource Planning Collaborative Business

For Over 30 Years, SAP Has Been Driving ERP – and They Continue to Do So… 70s SAP Invents Real-Time ERP SAP defines and establishes a new approach to Integrated Standard Business Software. ERP = The Business Software Industry The approach that SAP established becomes industry standard. New competitors enter the market. ERP Rapid Adoption Companies start to adopt ERP on a massive scale Dot.com Hype: ERP = Old E-Business = New Trends seemed to indicate that ERP was an out-of-fashion model mySAP ERP E-Business is now seen as an extension of ERP, not a replacement. SAP is leading the new industry standard for collaborative business applications. 80s 90s 00s

Evolution of SAP

Quiz Time

SAP R/3 client server architecture evolved in year___________.

Which is the latest SAP product?

mySAP ERP

mySAP Business Suite

mySAP.com with one step business

Quiz Time

SAP R/3 client server architecture evolved in year 1992

Which is the latest SAP product?

mySAP ERP

mySAP Business Suite

mySAP.com with one step business

SAP R/3 Architecture

3 Tier Client / Server Architecture

The SAP R/3 architecture is based on a 3-tier client/server principle

Presentation Server

Application Server

Database Server

Dedicated Servers are linked by Communication Networks

Perform tasks without sacrificing data integration and processes within the system, as a whole

SAP R/3 System Architecture (Contd...2)

Overview of Presentation & Database Servers

The Presentation Server

GUI only

At workstation

Very light

Sends requests to application server

Obtains screens from application server and displays

The Database Server

Interface between application server and RDBMS

Also holds the vendor specific DB driver

SAP R/3 Conceptual Areas SAP Conceptual Areas Application Area (Initiate and execute SAP transactions) (Functional) Basis Area (The technical administration of the system) (Authorizations/Ids/etc)

Development Area

(1. A developer’s

workbench

2. Create & Test

ABAP/4 programs)

(Technical)

Systems in R3 Development System (DC) Quality System (QC) Production System (IC) Client 110 100 etc.. Transport Request

Clients in R/3

The Logon Client

3 digit number ( 000 to 999)

Helps maintain independent sets of data within the same R/3 system

Client mechanism and handling

Clients in R/3

R/3 Technology Environment DB2 for OS/390 ADABAS D DB2 for AIX INFORMIX-OnLine ORACLE Windows 3.1, Windows 95, Windows NT, OSF/Motif *, OS/2 Presentation Manager (PM), Macintosh *, Java ADABAS D MS SQL Server INFORMIX-OnLine ORACLE ABAP/4, C, C++, HTML, Java DB2 for OS/400 OS/390 AIX Digital UNIX HP-UX Reliant UNIX (SINIX) SOLARIS Windows NT OS/400 Hardware Bull/Zenith Compaq Data General ... NCR Sequent SNI Digital HP (Intel) IBM (Intel) Bull Digital HP IBM SNI SUN UNIX Systems IBM AS/400 Operating systems Dialog SAPGUI Languages Databases IBM S/390

Platforms and Databases supported by R/3 DB2/400 Win 95 OS/2 AS/400 OS/400 Oracle 7.1 SQL Server 6.0 ADABAS D Win 3.1 / 95 / NT OSF / Motif OS/2 Macintosh AT&T Compaq Bull / Zenith HP (Intel) SNI IBM (Intel) Digital (Intel) Data-General Windows NT Oracle 7.1 ADABAS D OS/2 Macintosh Bull Digital Unix Informix – Online OSF / Motif Digital HP SOLARIS HP-UX DB2 for AIX Win 3.1/ 95 / NT IBM SNI SUN AIX SINIX Supported Databases Supported Front ends Supported Hardware Operating Systems

Client Server Benefit

Quiz Time Business Administration Client Authorizations Oracle Unix Systems GUI Client Testing/ UAT Quality System 3 Digit number Basis Application Server Windows Presentation Server Match the following

Quiz Time Basis Authorizations Windows Unix Systems Quality System (QC) Client Testing/ UAT Client 3 Digit number Business Administration Application Server GUI Presentation Server Match the following

SAP R/3 Modules

SAP Modules SAP R/3 FI WF PS PM WM PP MM SD HR AM CO QM PP – Production Planning WM – Warehouse Management PM – Plant Maintenance AM – Asset Management PS – Project System MM – Materials Management SD – Sales and Distribution QM – Quality Management WF – Workflow HR – Human Resources CO – Controlling FI – Financial Accounting

Financial accounting (FI)

Controlling (CO)

Asset management (AM)

Materials management (MM)

Sales and Distribution (SD)

Production Planning (PP)

Quality management (QM)

Plant maintenance (PM) & Customer Service (CS)

Project system (PS)

Human resources (HR)

Workflow (WF)

SAP R/3 Application Modules

MM Material Procurement Inventory Management Batch Management Goods inspection Invoice Verification PP BOM/Work Center/Routing MRP Capacity Evaluations Production Orders QM in production SD Inquiry processing Sales Order Processing Delivery Processing Billing FI General Ledger Accounts Payable Accounts receivable Cash management CO Cost Center Accounting Product Costing Order Contribution Analysis Module Functionalities

Quiz Time Asset Management Activity monitoring Project System Billing Production Planning Profit center Accounting Sales & Distribution Financial Reporting Materials Management Shop Floor Control Controlling Inventory Management Financial Accounting Match the following

Quiz Time Activity monitoring Project System Shop Floor Control Production Planning Billing Sales & Distribution Inventory Management Materials Management Profit center Accounting Controlling Asset Management & Financial Reporting Financial Accounting Match the following

External reporting of

General ledger

Accounts receivable/payable

Sub-ledger accounts

with a user-defined Chart of Accounts

Key elements

General ledger

Accounts payable

Accounts receivable

Asset Management

Special Purpose Ledger (FI-SL)

Legal consolidation

Accounting Information System

Module FI – Financial Accounting

Financial Accounting Payables Receivables Bank accounts General Ledger Cash management and forecast Foreign exchange management Management of secureties and loans Finance information system Bank Invoice verification Credit management Consolidation Extended General Ledger Accounts payable Accounts receivable

Represents the flow of cost and revenue

Instrument for organizational decisions

Key elements of the CO application module include :

Cost center accounting

Product cost Planning

Product Costing

Profitability analysis

Profit center accounting

Activity based costing

Enterprise controlling

Module CO – Controlling

Optimize tasks/activities in

Sales

Delivery

Billing

Key elements of the SD application module include :

Pre-sales support

Inquiry processing

Quotation processing

Sales order processing

Delivery processing

Warehouse management

Billing

Credit Management

Sales Information system

Module SD – Sales and Distribution

Sales and Distribution Processing M A T E R I A L S M A N A G E M E N T F I N A N C I A L A C C O U N T I N G Sales activity S A L E S I N F O R M A T I O N S Y S T E M Sales Support Sales Shipping Billing Subsequent delivery free of charge Inquiry Quotation Contract Delivery free of charge Sales order Returns Scheduling agreement USD Delivery Invoice Debit memo Credit memo

Supports

Procurement

Inventory

Key elements

Materials procurement (purchasing)

Inventory management

Invoice verification

Material valuation

Vendor evaluation

External Services management

Purchasing Information System (PurchIS)

Inventory Controlling Information system

Module MM – Materials Management

Materials Management Service / spare parts

Material Special stock Batch

Vendor/one-time customer

Purchasing info record

Service specifications

Workflow

Optical archive

Texts Mail Communication

Classification

Documents

Conditions

BASIC DATA Purchasing information system Vendor evaluation

Purchase requisition

PURCHASING

MRP

Direct requisition

Release procedures

RFQ/Quotation

Material/service

Price comparisons

Price comparison list

Purchasing

Purchase orders

Outline agreements

Scheduling agreements

Goods receipt/issue

Transfer posting

Quantities and values

Physical inventory

Storage bins

Check and post

Price update

INVENTORY MANAGEMENT INVOICE VERIFICATION SD PP PM QM FI AM CO PS Third-party order Requirements Inspection lot Fixed assets Cost center / Budget Project G/L accounts Cash management and forecast Service/ Spare Parts

To plan and control the manufacturing activities

Key elements

Bill of Material (BOM)

Routings

Work Centers

Sales and Operations planning (SOP)

Master Production Scheduling (MPS) – Capacity Planning

Materials Requirement Planning (MRP)

Shop Floor Control (SFC)

Production orders

Product costing, activity-based costing

Work in process

Kanban

Production planning for process industries (PP-PI)

Repetitive Manufacturing

Module PP – Production Planning

Production Planning FI CO HR Cost accounting Financial accounting Human resources Project Networks Maintenance Repairs Plant maintenance Inbound Raw Material Finished Goods Sales and Operations Planning Demand management / MPS Material requirements planning Detailed Schedeling and Planning Capacity planning Shop floor control Costing Information system Purchasing Warehouse Invoice verification Sales Shipping Billing Customers Vendors SD PP SD SD SD MM SD QM SD PM SD PS

Supports

Quality planning

Inspection

Control for manufacturing

Costing

Procurement

Key elements

Quality planning

Quality during procurement, production, distribution

Quality Management Information - Quality inspection

Information System (QMIS )

Module QM – Quality Management

PS – Project Systems

Support planning, control, & monitoring of long term highly complex projects with defined goals

Key elements

Project WBS – Plan

Budget & Monitor

Network Management

Activity monitoring, Material Planning, Milestones, Capacities Scheduling

Project Management Information System

HR – Human Resource

Key elements

Recruitment

Payroll & Time management

Travel Expense accounting & Benefits

Workforce planning & Training administration

Organization management

Module PS – Project System & HR – Human Resource

To integrate SAP R/3 with cross-applications

Support tool for all modules

Automates business process

As events occur that trigger a process, the Workflow manager initiates a Workflow item

Using the process logic, data and documents are incorporated at each step

Using the processing rules, the Workflow manager routes the item to the appropriate role (location, person, unit, etc....).

Example:

Posting a PO will trigger automated mail to sales support for customer service.

Module WF – Work Flow

Quiz Time

Is Industry solutions an SAP module like FI/CO/MM etc?

True/False

PP Supports procurement and Inventory

FI Handles project budgeting and monitoring

WF management is a support tool for all modules

Quiz Time

Is SAP - Industry solutions a module like FI/CO/MM etc?

NO

True/False

PP Supports procurement and Inventory

(False – MM Supports these functions)

FI Handles project budgeting and monitoring

(False – PS handles these functions)

WF management is a support tool for all modules

(True)

Combines SAP R/3 application modules to additional industry-specific functionality

Result of the research by industry Centers expertise (ICOE)

IS – Industry Solutions

mySAP Industry Solutions (Some Examples)

SAP for Aerospace & Defense

SAP for Media

SAP for Automotive

SAP for Mill Products

SAP for Banking

SAP for Mining

SAP for Chemicals

SAP for Oil & Gas

SAP for Consumer Products

SAP for Pharmaceuticals

SAP for Engineering, Construction & Operations

SAP for Professional Services

SAP for Healthcare

SAP for Public Sector

SAP for High Tech

SAP for Retail

SAP for Higher Education & Research

SAP for Service Providers

SAP for Industrial Machinery & Components

SAP for Telecommunications

SAP for Insurance

SAP for Utilities

SAP Product Overview

Evolution of SAP products R/3 R/3 Enterprise SAP NetWeaver mySAP ERP Solutions mySAP CRM mySAP SCM mySAP HR mySAP PLM ……… .. mySAP Business Suite Web AS

Easing Upgrade Plans & Providing Transition Options

Bringing benefits of SAP Netweaver into installed base

New Customers have more entry options & receive world –class ERP

Evolution of SAP products SAP R/3 my SAP Solutions my SAP Business Suite

SAP R/3 Operations Corporate Services HR Financials

mySAP Solutions Operations Corporate Services mySAP HR mySAP Financials Adaptive Business Solutions SAP R/3 mySAP SCM mySAP PLM mySAP SRM mySAP CRM

my SAP Business Suite mySAP PLM mySAP SCM mySAP mySAP SRM CRM Operations Corporate Services mySAP HR mySAP Financials Application Platform ( Web As ) People Integration (Portal) Information Integration( BI,MDM ) Process Integration (XI) SAP NetWeaver

mySAP Solutions & Netweaver

mySAP CRM

mySAP SRM

mySAP SCM

mySAP PLM

SAP Netweaver

My SAP Customer Relationship Management (CRM)

CRM Solution Map

CRM – Holistic view

Where does a CRM solution fit? Who Sales Service Marketing Executives What Service Transact Fulfill Engage Which way Internet Mobile Telephony How Operational Collaborative Analytical Workplace Use a CRM Solution to complete the Cycle

CRM Component Landscape OLTP R/3 System BW APO Mobile Clients Internet mySAP.com Portal Users As one big logical box CRM System Telephone Callers

CRM Internet Sales B2C Scenario Consumer BBP Scenario Business Partner B2R Scenario Reseller Internet- selling Enterprise

Service module within CRM

Service Planning

Proactively engage customers with the correct resources at the most beneficial times

Customer Care

Provide customer with 24/7 accessibility from all communication channels with precise and consistent informationon

Installed Base Management

Maintain an accurate, up-to-date record of a customer’s products and installations to facilitate service and anticipate customer requirements

Mobile Sales module within CRM

Suite of tools tailored to the needs of the offline mobile sales force

Provides an integrated view of customers, prospects, products, services, competitors, activities, opportunities, quotations, orders, etc.

Heavy cross-referencing for easy navigation

Facilitates the sales process by

Effectively managing customers and prospects

Providing appropriate customer, product and competitive information

Determining product and pricing configurations

Managing sales projects across sales teams

Generating presentation and proposals

Quiz Time

What is the latest version of mySAP CRM

Name the three service modules with in CRM

Quiz Time

What is the latest version of mySAP CRM

(Version 5.0)

Name three service modules with in CRM

Service Planning

Customer care

Installed base management

My SAP Supplier Relationship Management (SRM)

SRM Solution Map

Key Components of mySAP SRM mySAP SRM – eProcurement mySAP SCE Supplier Collaboration Engine

Enterprise Buyer Prof 3.5

Business Inf. W’house 3.0B

Requisite Bugs Eye 3.5

Requisite eMerge 3.5

Enterprise Portal 5.0

Supplier self services 1.0

Bidding Engine 3.5

User Management 3.0

Exchange Infrastructure Content Integrator

Key Components of mySAP SRM

Strategic Sourcing

Sourcing analytics: Helps provide analytics based on supplier location, line of business

Supplier evaluation: Helps you evaluate the supplier base within the organization systems and external market places to identify and select supplier to ensure reliable & uninterrupted supply

Request for quotation and auctions: Provides electronic auctioning and bidding tools to compress sourcing cycle times

Contract management: Helps create and manage value and quantity contracts

Operational Procurement

Self-service procurement: Enables decentralizing procurement process within organization, without diluting the control

Plan-driven procurement: Enables automatic purchase order generation for stock materials across the integrated supply chain

Services procurement: Enables service procurement process to be managed online

Key Components of mySAP SRM….Contd.

Supplier Enablement

Supplier portal: Provides portal features for suppliers to manage their product data and orders

Supplier connectivity: Provides capability to connect multiple suppliers through XM_-based document exchange

Content Management

Content consolidation: Provides capability to consolidate product and vendor information

Catalog content management: Provides capability to manage OCI compatible catalog with tools for data import, data edit and a search engine

Quiz Time

Name any one key component of mySAP SRM Solution map

Quiz Time

Name any one key component of mySAP SRM Solution map

Following are the three key components of mySAP SRM

Strategic Purchasing & Sourcing

Operational Procurement

Supplier Collaboration

My SAP Supply Chain Management (SCM)

SCM – Solution Map

mySAP SCM SAP APO (Advanced Planning and Optimizing) Flexible and Adaptive Planning, Integration with CRM, SRM and PLM SAP ICH (inventory Collaboration Hub) Collaboration with Suppliers SAP EM (Event Management) Monitor, alert and resolve exceptions

Typical SAP SCM Solution-scape Core Interface Legacy Systems BAPI SAP CRM, SAP SRM and SAP PLM Core interface SAP R/3 Dominant source of Master Data in SAP SCM, destination of transaction data like planning outputs or Availability Checks for Execution systems Planning system where selective Master data maintained and sourced from R/3 SAP SCM Planning Outputs include Forecasts, SNP or PPDS Planned Orders, Stock Transfers and Production Orders Module includea Demand Planning, SNP & Deployment, PPDS, GATP, TPVS and TLB Transaction Data Master Data

One-on-One comparison Manufacturing Planning and Scheduling Oracle Manufacturing Scheduling PP/DS (Production Planning and Detailed Scheduling) Factory Planning Manufacturing Planning Fulfillment Management Oracle GOP (Global Order Promising) SAP GATP (Global ATP) Demand Fulfillment ATP and Fulfillment TP/VS (Transportation Planning/Vehicle Scheduling) SAP SNP (Supply Network Planning) Demand Planner SAP SCM Demand Management Oracle Demand Planner Demand Planner/Demand Management Forecasting Logistics Management Solutions Oracle Transportation TMS (Transportation Management Solutions) Transportation Master Planning Oracle ASCP (Advanced SCP) Supply Chain Planning Material and Resource planning Manugistics (Networks SCM) ORACLE APS i2 Technologies (Tradematrix SCM)

mySAP Product Life Cycle Management (PLM)

PLM Solution Map

SAP Netweaver

A Roadmap for Web Services

Services are changing SAP’s Product portfolio

From Basis to WAS

Integration is the Key Challenge Document Mgmt E-sales E-procurement PLM Technical systems Trading Call Center ERP Market Analysis SCM

Business Drivers

Extended Value Network

Increased Market Dynamics

Integration costs are high

Long integration projects

IT environments become increasingly rigid

Lots of heterogeneous systems

Pressure on IT increases

Must leverage existing investments

Must support new business processes quicker

Must reduce total cost of ownership (TCO)

How to Address the Integration Challenge Document Mgmt Market Analysis SCM E-sales E-procurement PLM Technical systems Trading Call Center ERP

Reduce Complexity

Minimize the number of connections through hubs

Use only one platform to integrate all people, information, and systems

Reduce Cost Integration

Deliver .NET and J2EE interoperability

Deliver adaptors for ISV products

Deliver products, not projects

Increase company performance

Increase ease of use, scalability and adaptability

Increase business process flexibility by using an Enterprise Services Architecture

The fundamental Web services standards are supported by the Web Application Server ( Web AS), which is the basis for all other NetWeaver components

SAP NetWeaver The integration and application platform for lower TCO

Unifies and aligns people, information and business processes

Integrates across technologies and organizational boundaries

A safe choice with full .NET and J2EE interoperability

The Business foundation for SAP and partners

Powers business-ready solutions that reduce custom integration

It’s Enterprise Services Architecture increases business process flexibility

SAP NetWeaver in Detail (SAP Internal View) Product components and killer features SAP NetWeaver People Integration Application Platform Process Integration Information Integration Multi-channel Access Portal Collaboration Master Data Management Bus. Intelligence Knowledge Mgmt Integration Broker Business Process Management Multi-channel Access J2EE ABAP Composite Application Framework Life cycle Management

SAP Mobile Infrastructure

Tight coupling and alignment with SAP business solutions

SAP Enterprise Portal

Business packages

Collaboration

SAP Business information Warehouse

Business content

Tight integration to Sap

Open architecture (Crystal, Accential )

Master Data Management

Coming in 2003

SAP Exchange Infrastructure

Proxy generation and mapping tools

Integration directory

SAP’s ability to execute

SAP Web Application Server

Proven, scalable, comprehensive toolsets

Leverage existing infrastructure/skillets

SAP Solutions Powered by SAP NetWeaver Business content makes the business foundation

SAP Organizational units

Business Scenarios – Main Elements

Organizational Structure in SAP Human Resources Controlling Client Company Code Purchasing Organization Personnel Area Production Planning Sales and Distribution Materials Management Financial Accounting Sales Area Controlling Area Plant

Company Code

Organizational Structure - Levels

Organizational Structure – Business Functions

Enterprise Structure - Technology

Client Chart of Accounts Distribution Channel Sales Organ. Sales Office Sales Group Division Purchasing Group Plant Shipping Point Storage Location Company Code Loading Point Purchasing Org. SAP Organizational Structure: Cardinality

Quiz Time

Which is not a part of SAP Business Scenario main Elements

Master Data

Organizational Unit

Transaction

Document

All the above

Answer True or False

One Chart of accounts can be assigned to many Company Codes

A plant can be assigned to many Company codes

Quiz Time

Which is not a part of SAP Business Scenario main Elements

Master Data

Organizational Unit

Transaction

Document

All the above

Answer True or False

One Chart of accounts can be assigned to many Company Codes

( True)

A plant can be assigned to many Company codes

(False)

Organizational Elements in FICO

Organizational Units in R/3 FI

Overview: Organizational Elements in Accounting

Organizational Elements in Logistics

Overview: Organizational Elements in Logistics

Quiz Time

State True/False

Company is obligatory in an organization structure

Fill in the blank

Unit responsible for procurement of materials/services and negotiating with vendors is called ____________.

Quiz Time

State True/False

Company is obligatory in an organization structure

(False – Company code is obligatory)

Fill in the blank

Unit responsible for procurement of materials/services and negotiating with vendors is called Purchasing Organization

Organizational Elements in Sales

Quiz Time

Fill in the blanks

Sales area is a combination of _____________, ________________ and _______________.

Quiz Time

Fill in the blanks

Sales area is a combination of

Sales Organization,

Division and

Distribution Channel

Navigation

Logging on to SAP System Logon pad with different systems

Adding to favorites Steps to add transaction to favorites Step I: Select the transaction you want to add to favorites Step II: Right click on the transaction you want to add to favorites Step III: Select Add to favorites.

General Settings

Variants

Calendar

Public Holidays

Holiday Calendar

Factory Calendar

Unit of Measurements

Currencies

Currency codes

Conversions (quotations)

Exchange Rate Type

Rates

Rounding rules

Global Settings (at Country level)

The Variant Principle

Define Public Holidays

Define Holiday Calendar

A combination of a yearly 12-month calendar and a list of all public holidays that fall within a calendar year.

Gives an overview of all working days and all days off for a calendar year. It can be created to cover a validity period of several years.

Can be defined according to the country or region in which they are to be implemented, and adapted to suit individual business requirements

Calendar

Define Factory Calendar

Calendar in which working days are numbered sequentially.

Defined on the basis of a public holiday calendar.

Validity period of a factory calendar must be within the validity period of the public holiday calendar.

The weekdays that are working days must also be specified in this calendar.

Examples:

Monday through Friday are working days.

Saturday, Sunday and public holidays are non-working days.

Enables calculations with quantities and physical units.

Units of measurement are needed for internal conversions (such as kilogram <-> gram, but also centimeter <-> inch).

The international system of units (SI) is used for this.

UOMs are held centrally in the SAP System for all applications.

Conversion factors are stored in the system with a unique internal key.

Unit of measurement can be created according to requirements.

CAUTION: Extra care to be taken for any creation as this global setting can affect the whole system performance

Unit of measurement

Currencies

Legal means of payment in a country.

You can manage ledgers in two parallel currencies in addition to the local currency

Currency codes

SAP maintains about 187 currencies. If any transaction in a new currency will happen for the organization, that currency to be maintained

Standard quotation

Can specify direct or indirect quotation. System by default will take direct quotes.

Conversion factors

Mention the conversion for currency to currency. For example, INR To Yen will 1:100

Rounding rules

ensures that the amounts in this currency are always rounded to this unit

Currency settings

Exchange Rate Type is used for different business purposes where multiple rates can be maintained for a pair of currencies

The following exchange rate types exist

Buying rate (G)

Bank selling rate (B)

Average rate (M)

Historical exchange rate

Key date exchange rate

Default exchange rate types can be maintained in document types

For posting and clearing, the system uses the exchange rate type M (average rate). This exchange rate type must be entered in the system and you must also enter the exchange rates for this type .

Exchange Rate Type