L14 R3overview
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L14 R3overview Presentation Transcript

  • 1. Right Solution, Right Time, Right Price R/3 Overview
  • 2. Purpose of Overview
    • Provide an introduction to the SAP R/3 system
    • Explain the system’s functionality
    • Introduce SAP R/3’s approach to business processes
  • 3. SAP R/3 Pre-Configured Client (PCC) R/3 Client / Server FI Financial Accounting CO Controlling AM Fixed Assets Mgmt. PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales & Distribution PP Production Planning QM Quaity Manage-ment PM Plant Main-tenance
  • 4. SAP R/3 Application Modules
    • The SD application module helps to optimize all the tasks and activities carried out in sales, delivery, and billing.
    Sales and Distribution (SD) Quotation processing Sales order processing Delivery processing Billing Reporting
  • 5. SAP R/3 Application Modules
    • The MM application module supports the procurement and inventory functions occurring in day-to-day business operations.
    Materials Management (MM) Material procurement Reorder point processing Inventory management Invoice verification Material valuation
  • 6. SAP R/3 Application Modules
    • The PP application module is used to plan and control the manufacturing activities of a company.
    Production Planning (PP) Bills of Material (BOM) Routings Work centres Master Production Scheduling (MPS) Material Requirements Planning (MRP) Production Planning Execution Production orders Product costing Repetitive manufacturing
  • 7. The FI application module is designed for automated management and external reporting of general ledger, accounts receivable, accounts payable, and other sub-ledger accounts with a pre-defined chart of accounts. SAP R/3 Application Modules Financial Accounting (FI) General ledger Accounts payable Accounts receivable Special Purpose Ledger
  • 8. SAP R/3 Application Modules
    • The CO application module represents the company’s flow of cost and revenue
    • CO is a management instrument for organizational decisions
    Controlling (CO) Cost centre accounting Internal orders Product costing analysis Profit centre accounting
  • 9. SAP R/3 Application Modules
    • The AM application is designed to manage and supervise individual aspects of fixed assets
    Asset Management (AM) Traditional asset accounting Asset replacement Depreciation Capital orders
  • 10. Benefits of the system
    • Integrated
    SAP
  • 11. SAP and Integration The value of Integration: Integrated systems enable simplified business processes, standard data definition, and a common business language Simplified business processes enhance productivity to allow focus on value added activities Data has to be entered only once and all related information is updated automatically Integrated applications instill confidence in information and eliminates need for redundant analysis and reconciliation
  • 12. Integrated & Process Driven Purchase Order Goods Receipt Product Delivery MM, FI, CO, PP MM, FI, CO, QM MM, FI, CO, MM, SD, FI, CO Manufacture
  • 13. This means that if fully implemented, it is able to “run” the business, all processes and procedures. Even if your business is geographically spread out, SAP is able to operate across the physical distance seamlessly.
    • Enterprise-Wide
    SAP
  • 14. SAP utilizes known and proven business and industry practices to achieve its goals. The developers have tried to include as many generic processes that would cover the entire business cycle that a company may require in all of its day-to-day operations.
    • Best Business
    • Practices
    SAP
  • 15. SAP is able to use different currencies at the same time. SAP uses a table of currency rates that may be updated by the firm at any time, as often as required, to translate transactions entered in one currency to another. Once a company is set up, it is given a “home” currency in which it stores its amounts. Other currencies may be used in the entering of business transactions (eg. invoice entry), but they are translated internally automatically into the “home” currency. Any changes in currency valuation are also picked up and the necessary gain or loss on currency valuation accounts updates automatically. SAP
    • Multi-Currency
  • 16. SAP is multi-lingual ie. you can have different users logged onto the same system in different languages all at the same time.eg. A SAP system implemented in Montreal, Toronto and Mexico City can be used simultaneously in French, English and Spanish. The system has a built-in language translator that will translate items into the desired language, automatically. When logging onto the system, a user is asked which language he/she would like to work in. A default language is normally set when the system is installed. SAP
    • Multi-Lingual
  • 17. The SAP system uses different levels of security to ensure that its data is kept secure. User sign-on and passwords are the first level. Authorizations allowing entry into only certain screens and the type of access onto certain screens form the next tier. eg. a user may have entry access to the invoice screens, but he may only display invoices and not add, change or delete invoices. Users with like access requirements are grouped together using profiles. Profiles themselves may be grouped together forming composite profiles. The third level of security is field level security. Various screens can be customized to allow access to certain fields where data can be entered and other fields that are display only. SAP
    • Secure
    • Information
  • 18. SAP GUI: Graphical User Interface Operates on the WYSIWIG principal (What you see is what you get). It is a point & click system.
  • 19.
    • Concepts and Features
    • System-wide Concepts
    • System-wide Features are used to logically, safely, and flexibly organize the data a business uses
      • Organizational Elements
      • Master Data
      • Security
  • 20. Organizational Structure
    • The fundamental data and functional architecture of the R/3 system...
      • Defines the legal and organizational structure of a company from different points of view
      • Includes flexible organizational units for creating a comprehensive company structure
      • Links different application areas in the R/3 system to create an integrated company structure
    The different points of view include: Financial Accounting, Materials Management, and Sales and Distribution.The process of determining the organizational structure is critical to the SAP implementation project. Everything depends on the hierarchy decisions that are made.
  • 21. Master Data Customer Master Material Master ? Purchasing Vendor RFQ Quotation Vendor Master Chart of Accounts B Chart of Accounts A Company Codes Client Currency CAD Line item Display X . . CC 0003 Currency USD Line item Display X . . CC 0001 G/L Account BANK Bal sheet acct X Account group FIN. . . G/L Account Master
  • 22. The Material Master Production Planning Sales Order Processing Material Master Record
    • Central repository
    • of material data for all
    • areas within logistics:
    • Finished Products
    • Semi-finished products
    • Raw materials
    • Consumables
    • Marketing Materials
    1998 Inventory Management Invoice Verification Purchasing SAP R/3
  • 23.
    • Profiles
    • Objects
    • Authorization
    System-wide Features Security: Objects describe various business and system-related groupings such as accounting documents, customer and vendor accounts. Profiles are a collection of objects used to control system access privileges. Security authorizations assign profiles to users to determine what privileges they have within an object or group of objects. You choose relevant profiles for your users from the delivered SAP profiles. Users may access only the objects assigned to them.
  • 24. Authorization Groups There are pre-defined authorization groups which have been established for the PCC. The pre-defined authorization groups are based on roles and responsibilities. They are for unit and integration testing They can be modified to meet your needs (new hires, responsibility etc.)
  • 25. SAP Reporting SAP Standard Reports?
  • 26. Business Process Overview Material Requirements Planning Planned Orders Purchasing Requisitions Production Orders Finished Goods Receipt Dependent Requirements Warehouse Purchase Orders Production Orders Independent Requirements Demand Sales Processing Capacity Req. Planning Raw Mat. Goods Issue ACCOUNTING Purchase Orders Goods Receipt Forecast 1 2 3 4 5
  • 27. ERP : Overall picture by computerized functions MANUFACTURING ACCOUNTING DISTRIBUTION HUMAN RESOURCE
  • 28. Business Process Versus Computerized Functions Material Requirements Planning Planned Orders Purchasing Requisitions Production Orders Finished Goods Receipt Dependent Requirements Warehouse Forecast Purchase Orders Production Orders Independent Requirements Demand Sales Processing Capacity Req. Planning Raw Mat. Goods Issue ACCOUNTING FI& CO Purchase Orders Goods Receipt SD MRP CRP PO PP IM IM
  • 29. Expected Benefits of ERP
    • Top Management
      • Simulate the Future before making a Decision
      • Operate on One Game Plan
      • Improved Performance Reporting
      • Engineering
      • A Simple way to tie Engineering and Manufacturing Priorities
      • Improved Design Control
    • Sales and Marketing
      • Better Customer Deliveries through Improved Planning
      • More Accurate Delivery Promises
  • 30.
    • Manufacturing
      • A way to Have All the Facts when faced with though decisions
      • A way to plan ahead, rather than expedite a losing battle
    • Purchasing
      • A way to reduce expediting , and concentrate on sourcing and negotiating
      • Improved request control and approval
    Expected Benefits of ERP
  • 31.
    • Finance
      • Integrated Operating and Accounting Data.
      • Improved Data Accuracy
    • Personnel
      • A way to reduce on-the-job frustrations associated with constant expediting
      • A Chance for everyone to see their efforts count
      • A move away from numbers posting to a setting of achievable plans
    Expected Benefits of ERP
  • 32. ERP : Overall picture by computerized functions MANUFACTURING (Material Requirement Planning, Capacity Requirement Planning, Shop Flor Control, etc) ACCOUNTING (General Ledger, Account Payables, Account Receivables, Asset,etc) DISTRIBUTION (Sales, Distribution, Inventory Purchase, etc) HUMAN RESOURCE
  • 33. Main SAP Modules and Integration - Sales & Distribution
  • 34. R/3 Client / Server ABAP/4 FI Financial Accounting CO Controlling AM Fixed Assets Mgmt. PS Project System OC Office Comm IS Industry Solutions MM Materials Mgmt. HR Human Resources PP Production Planning QM Quality Mgmt. PM Plant Maintenance SD Sales & Distribution SAP R/3 Functionality - Sales and Distribution
  • 35. Business View - Sales Cycle Sales Order Receive Payment Credit Check Goods Issue Billing Document
  • 36. Sales Sales Support Shipping Billing S A L E S I N F O S Y S T E M CO PM FI PS FI CO Materials Management Production Planning Plant Maintenance Controlling Financial Accounting Project System Inventory Management Creditworthiness Warehouse Management Accounts Receivable Controlling Profitability analysis PP MM MM FI PA WM SAP R/3 Functionality - Sales and Distribution
    • Competitors
    • Sales activities
    • Direct mailing campaigns
    • Customer inquiry
    • Customer quotation
    • Order processing – Orders – Scheduling agreements – Contracts
    • Picking
    • Packing
    • Transportation
    • Single invoice
    • Collective invoice
    • Invoice list
    • Credit/debit memo
    • Business partners
    • Material Bills of material Product proposals
    • Customer-material- info record
    • Equipment
    • Classification
    • Texts
    • Conditions
    • Sales taxes
    • Statistics
    Master data
  • 37. Quotation Inquiry Order Delivery Goods issue Billing document SD Business Process Flows in SAP Order Processing SD SAP R/3 Functionality – Sales and Distribution Integration Update demand Management Run MPS/MRP Inventory Management Update Financials Sales orders ATP PP MM FI/CO Update
  • 38. Main SAP Modules and Integration - Material Management
  • 39. R/3 Client / Server ABAP/4 FI Financial Accounting CO Controlling AM Fixed Assets Mgmt. PS Project System OC Office Comm IS Industry Solutions HR Human Resources PP Production Planning QM Quality Mgmt. PM Plant Maintenance SD Sales & Distribution MM Materials Mgmt. SAP R/3 Functionality - Material Management
  • 40. Business View - Procurement Cycle Goods Receipt Purchase Requisition Invoice Receipt Purchase Order Vendor Payment Request For Quotation
  • 41. Business View - Goods Issue From Consignment Stores From Warehouse Consumption Issue Sample Scrap Sales Asset Cost Centre Goods Issue -----
  • 42. LOGI S T I CS I N F O S Y S T E M Financial Acctg. Production Planning Controlling Fixed Assets Mgmt. CO PP Production Planning Sales & Distribution PP SD Quality Mgmt. Financial Acctg. Production Planning PP Purchasing MRP Warehouse mgmt. Inventory mgmt. Receiving
    • Requisition
    • Order Creation
    • Invoice verification
    • QA
    • Inspection
    • Cycle counting
    • Physical inventory
    • Movements
    • Valuation
    • BOM
    • Lot-sizing
    SAP R/3 Functionality - Material Management Financial Acctg. Production Planning Controlling CO PP Quality Mgmt.
    • Vendor data
    • Material
    • Material types Bills of material Product proposals
    • Equipment
    • Classification
    • Texts
    • Conditions
    • Purchasing info
    • records
    Master data FI AM QM FI FI QM
  • 43. Purchase Order RFQ (Request For Quotation) Goods Receipt Purchase Requisition Manual Creation Invoice Verification SAP R/3 Functionality – Material Management Integration : Purchasing Planned Order MRP Update Financial (see the Example slides) Material Master
  • 44. Material Production Material Requirements Planning Quality Management Inventory Management on a Quantity & Value Basis Production Planning Plant Maintenance Sales & Distribution Purchasing Invoice Verification Product Costing SAP R/3 Functionality – Material Management Integration : Material Master
  • 45. Stock quantity Consumption statistics ... Reservation Point of Consumption (CO Module): Cost centre Order ... G/L accounts (GL Module): Stock account Consumption accnt. Accounting Document Material Document Posting of Goods Issue SAP R/3 Functionality – Material Management Integration : Goods Issue Inventory 80.00 Consumption 80.00 Material ----- ------ ------- ----- - ----- -- ------- ------- --------- MateriaL
  • 46. Main SAP Modules and Integration - Production Planning
  • 47. R/3 Client / Server ABAP/4 FI Financial Accounting CO Controlling AM Fixed Assets Mgmt. PS Project System OC Office Comm IS Industry Solutions MM Materials Mgmt. HR Human Resources QM Quality Mgmt. PM Plant Maintenance SD Sales & Distribution PP Production Planning SAP R/3 Functionality - Production Planning
  • 48. Business View - Production Cycle Production Control Production Planning (Material, Capacity) Finished Goods Issued for Sales Material Issued from store Finish Goods Received to Store Sales Order or Sales Forecast
  • 49. P R O D U C T I O N I N F O S Y S T E M Sales & Operations Planning Capacity Planning MRP Production Activity (Shop Floor) Control Production Planning/MPS Sales & Distribution SD SAP R/3 Functionality - Production Planning
    • Product Group
    • Sales Plan
    • Master Production Scheduling
    • BOM
    • Material Requirement Planning
    • Capacity Evaluation
    • Capacity Dispatching and leveling
    • Production Order Creation
    • Production Order Confirmation
    Product Costing Financial Acctg. Inventory Management Warehouse Management Controlling CO MM Quality Mgmt.
    • Material
    • Bills of material
    • Work centers
    • Routings
    • Documents
    • Production resources/
    • Tools(PRTs)
    • Inspection plan/
    • characteristics
    Master data FI QM
  • 50. Production Planning in SAP R/3 Organization Structure for Production Planning Client “ Holding Company” Company Code “ Legal Reporting” Plant “ Production Site” Storage Location “ Inventory Management” Basic Data Acc. Data MRP DATA Storage Data Production Planning Data
    • Material Master
    • Bill of Material (BOM)
    • Routings
    • Work Centers
    • Production Resources/Tools (PRT)
    • Capacity
    • Engineering Change Management (ECM)
    • Classification
    • Product Costing
    • Material Requirements Planning
    • Manufacturing Resources Planning
    SIS Forecast Manual Manual COPA External Procurement Payment Invoice Verification Invoice Receipt Goods Receipt FI FI FI Purchase order CO Vendor selection Source Determination Planned order Purchase req. RFQ Order settlement Archive/ Delete CO FI Completion conf. Order processing Withdrawal Material Inward Stock Mvt. Shop Floor Paper Printing FI Planned Order “ Order Proposal” Order creation Availability check Order Release MM MM CO MM MM FI SD CO Manual/Automatic Costs Calc. Time Tickets Withdrawal Slips Back Flushing Yes/No? Load in the WC Stock Items Costs Settled MPS Demand Mgmt. SOP Sales Plan Production Plan Manual Forecast Cons. History CO MM SD Planned Order Rough Cut Planning Transfer Transfer Transfer Purchase Requisition CO Information contained in this chart is not all-inclusive. Partial/Milestone Stock Updating Reservation Net Price Comparison Quotations Manual/Automatic Stock Requirements Overview SAP R/3 Functionality – Production Planning Integration (See MM module) Material Master Sales Order Make to Order SD MM MRP MRP List In-house Production (See next Page)
  • 51.
    • FI
      • Account Postings
    • CO
      • Order Cost Calculation
      • Order Settlement
    Order settlement Archive/ Delete CO FI Completion conf. Order processing Withdrawal Material Shop Floor Paper Printing FI Planned Order “ Order Proposal” Order creation Availability check Order Release MM MM CO MM MM FI SD CO Costs Calc. Time Tickets Withdrawal Slips Back Flushing Yes/No? Load in the WC Stock Items Costs Settled CO Stock Updating Manual/Automatic Partial/Full Inward Stock Mvt. Reservation SAP R/3 Functionality – Production Planning Integration : In house Production In-house Production
  • 52.
    • MM
      • Material Availability Check
      • Goods Movements
    • SD
      • ATP Quantity
    SAP R/3 Functionality – Production Planning Integration : In house Production Order settlement Archive/ Delete CO FI Completion conf. Order processing Withdrawal Material Shop Floor Paper Printing FI Planned Order “ Order Proposal” Order creation Availability check Order Release MM MM CO MM MM FI SD CO Costs Calc. Time Tickets Withdrawal Slips Back Flushing Yes/No? Load in the WC Stock Items Costs Settled CO Stock Updating Manual/Automatic Partial/Full Inward Stock Mvt. Reservation In-house Production
  • 53. Main SAP Modules and Integration - Financial Accounting and Asset Management
  • 54. R/3 Client / Server ABAP/4 CO Controlling PS Project System OC Office Comm IS Industry Solutions MM Materials Mgmt. HR Human Resources PP Production Planning QM Quality Mgmt. PM Plant Maintenance SD Sals & Distribution FI Financial Accounting AM Fixed Assets Mgmt. SAP R/3 Functionality - Financial Accounting and Asset Management
  • 55.
    • Financial Statements
    • Account Analysis
    • Multi-currency
    • Taxation
    • Account Analysis (I/C)
    • Payments History
    Accounts Payable
    • Cash Plan
    • Cash Forecasting
    Cash Management General Ledger Accounts Receivable
    • Account Analysis (I/C)
    • Credit
    • Asset Values
    • Depreciation Forecast
    • Additions
    • Retirements
    Asset Management Materials Management Controlling Sales and Distribution Purchasing Controlling Financial Reporting Project System Inventory Management Customer Billing Credit Worthiness Intercompany Reconciliation MM SAP R/3 Functionality - Financial Accounting and Asset Management
    • Chart of Accounts
    • Company Codes
    • Business Areas
    • Credit Control Areas
    • Assets
    • Depreciation Areas
    Master data E X E C U T I V E I N F O S Y S CO FI Inventory Management Vendor Payments Intercompany Reconciliation MM PP FI PS CO MM SD MM FI SD
  • 56. Main SAP Modules and Integration - Controlling
  • 57. R/3 Client / Server ABAP/4 PS Project System OC Office Comm IS Industry Solutions MM Materials Mgmt. HR Human Resources PP Production Planning QM Quality Mgmt. PM Plant Maintenance SD Sals & Distribution FI Financial Accounting AM Fixed Assets Mgmt. CO Controlling SAP R/3 Functionality - Controlling
  • 58.
    • Financial Statements
    • Management Account Analysis
    • Multi-currency
    • Cost Center Expense
    • Planning
    • Budgeting
    • Controlling Areas
    • Profit Centers
    • Cost Centers
    • Operating Concerns
    • Profitability Segments
    Master data Cost Center Accounting
    • Profitability
    E X E C U T I V E I N F O S Y S Internal Orders
    • Project Tracking
    • Planning
    • Budgeting
    Materials Management Sales and Distribution Inventory Management Allocations Fixed Asset Management Allocations Project System Fixed Asset Management Profitability Analysis Sales and Distribution Project System Internal Orders Cost Center Accounting SAP R/3 Functionality - Controlling Profit Center Accounting Profitability Analysis MM SD MM FI CO MM AM PS PA PS CO CO SD
  • 59. R/3 Client / Server ABAP/4 FI Financial Accounting CO Controlling AM Asset Mgmt. PS Project System OC Office Comm IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales & Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance Summary - SAP ERP : R/3 Product Suite
  • 60.