This document provides an overview of SAP ERP software and reporting tools, and covers four case studies on a bike company's business processes and the SAP modules for sales, materials management, and production planning. The case studies examine the company's organizational structure, bills of materials, sales order processing, material requirements planning, and inventory management. The document concludes that SAP implementation defines a complete method for organizations to plan and execute the implementation of SAP software based on best practices.

1. Product
SAP Netweaver
Level
Student
Focus
Report
Author
Valeri Kopaleishvili
Requirements
Sap application launcher
INTRODUCTION
SAP ERP is enterprise resource planning software developed by the German company SAP
SE. SAP ERP incorporates the key business functions of an organization. The latest version

2. (SAP ERP 6.0) was made available in 2006. The most recent Enhancement Package (EHP7)
for SAP ERP 6.0 was released in 2013.
For enterprises, quickly and accurately accessing business information is vital. To this end,
SAP provides an extensive portfolio of tools for report creation. The most important tools are
as follows:
 Query reporting tools
 Report Painter/Report Writer
 Drilldown Reporting
 SAP NetWeaver Business Warehouse (SAP NetWeaver BW)/SAP
 BusinessObjects
The Exercise covers introduction to ERP with SAP. A case study introduced the Global Bike
enterprise with focus on its organizational structure and business processes. The Case study
involved understand and carrying out Global Bike business operation in Sales, Customer
Service, Material Management Operation and Purchasing.
SAP
WE COVERED FOUR STUDY CASES:
 Global bike organizational structure and business processes
 Sales and Distribution (SD)
 Materials Management (MM)
 Production Planning and Execution (PP)
 Global bike organizational structure and business processes
GBI is a world class bicycle company serving the professional and “prosumer”
cyclists for touring and off-road racing. GBI’s riders demand the highest level
of quality, toughness and performance from their bikes and accessories.
 Figure 1 : Organizational structure

3.  Figure 2: Bill of Materials for Deluxe Touring Bike (Black)

4.  Figure 3 :
 Sales and Distribution (SD)
 Sales Processing
 Sales and Distribution Processes – Data Determination and Collective
Process
 Function of the Sales Document Type.
 Plant, Shipping Point, and Route Determination.
 Shipping Scheduling.
 Collective processing in Sales and Distribution

5.  Analyses of Sales and Distribution Processes
 Lists and Reports.
 Sales Information System.
 Controlling Sales Documents
 Basic Principals of Business Process Control.
 Controlling Sales Documents – Sales Document Types.
 Controlling Sales Documents – Item Category.
 Controlling Sales Documents – Schedule Line Categories.
 Overview of Billing
 Billing Overview.
 Integration of the Billing Document in the SD Process Chain.
 Working with Organizational Units in Customizing.

6.  Materials Management
Material Management is a functional module that belongs to SAP AG that is used for
Procurement Handling and Inventory Management. This module mainly deals with
the Procurement Process, Master Data (Material & Vendor Master), Inventory
Management, Valuation of Material & Account Determination, Material Requirement
Planning, Invoice Verification etc.
Organizational structure
MM sub modules:
o Material planning
o Purchasing
o Inventory Management
o Vendor valuation
o Invoice verification
o Statutory requirements

7. Example: Create Vendor

8.  Production Planning and Execution (PP)
Sap PP encompass all activites like Material requirement planning, Bills of material, Routing,
Capacity planning and etc. All the details of manufacturing process can be record and track,
e.g planed costs, actual costs and material flows. Production Planning module is fully
integrated with other SAP Modules such as sales and distribution (SD), Material
Management (MM), Plant Maintenance ( PM) …

9. Example: Create Vendor

10. CONCLUSION
SAP implementation is the whole of processes that defines a complete method to implement
the SAP ERP enterprise resource planning software in an organization. The SAP
implementation method described in this entry is a generic method and not a specific
implementation method as such. It is based on best practices and case studies from various
literature sources and presents a collection of processes and products that make up a
complete implementation method to allow any organization to plan and execute the
implementation of SAP software.
REFERENCES
http://searchsap.techtarget.com/definition/SAP
http://go.sap.com/index.html
http://wiki.scn.sap.com/wiki/display/ERPLO/ERP+PP
http://www.erpgreat.com/production/what-is-sap-production-planning.htm