Session 8 & 9
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  • 1. Session 8 & 9 Business Processes, Integration and Configuration in the SAP R/3 Environment
  • 2. 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!!
  • 3. 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
  • 4. 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
  • 5. SAP R/3 and Business Processes - Overview -
  • 6. Pen Incorporated Procure for Sales Order SAP Enterprise System Goods from Purchase Order Pre-Sales Activity Sales Order Delivery Billing Accounts Receivable Accounts Payable General Ledger Accounts Purchase Requisition Purchase Order Goods Receipt In Inventory Plant or Warehouse Invoice Receipt Inventory Postings Availability Check NO YES Goods to Delivery
  • 7. Pen Incorporated Produce for Sales Order SAP Enterprise System Pre-Sales Activity Sales Order Delivery Billing Accounts Receivable Production Order Settlement General Ledger Accounts Planned Order Production Order Completion Confirmation In Inventory Plant or Warehouse Inventory Postings Availability Check NO YES Goods Issued to Delivery Goods from Production Order
  • 8. SAP Enterprise System 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.
  • 9. Logistics
    • Materials Management (MM)
    • Sales and Distribution (SD)
    • Production Planning (PP)
    • Quality Management (QM)
    • Plant Maintenance (PM)
    • Service Management (SM)
    SAP Enterprise System
  • 10. Accounting and Finance
    • Financial Accounting (FI)
    • Treasury (TR)
    • Managerial Accounting (CO)
    • Enterprise Controlling (EC)
    • Investment Management (IM)
    • Project Systems (PS)
    SAP Enterprise System
  • 11. Human Resources
    • The Human Resources (HR) application component is a complete integrated system for supporting the planning and control of personnel activities
    SAP Enterprise System
  • 12. Materials Management (MM) 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.
  • 13. Components of Materials Management Materials Management (MM) 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
  • 14. Materials Management (MM) Integration Procurement Process (Procure-to-Pay) Purchase Requisition Payment to Vendor Notify Vendor Vendor Shipment Invoice Receipt Goods Receipt Purchase Order
  • 15. Production Planning (PP) 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.
  • 16. Components of Production Planning Production Planning (PP) Components of Production Planning Production Planning (PP) Production Planning (PP) Production Planning SOP Capacity Planning MRP Product Cost Planning Repetitive Mfg. Production Control KANBAN Master Data DRP
  • 17. Production Planning (PP) Integration Schedule and Release Shop Floor Documents Goods Receipt Order Settlement Goods Issue Production Proposal (Planning/Other) Completion Confirmation Capacity Planning Production Process (Make-to-Stock)
  • 18. Sales and Distribution (SD) 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.
  • 19. Components of Sales and Distribution Sales and Distribution (SD) Sales and Distribution (SD) Sales Support Sales Credit Mgmt. Shipping Transport Billing Foreign Trade Sales Information System Master Data
  • 20. Sales Order Process (Order-to-Cash) Integration Sales and Distribution (SD) Sales Order Entry Post Goods Issue Invoice Customer Pick Materials Receipt of Customer Payment Pack Materials Check Availability
  • 21. Financial Accounting (FI) 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.
  • 22. Components of Financial Accounting Financial Accounting (FI) Financial Accounting (FI) Accounts Receivable Accounts Payable Special Purpose Ledger Fixed Assets Banks General Ledger
  • 23. Controlling (CO) 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.
  • 24. 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