ERP Training

What is ERP?
ERP covers the techniques and concepts
employed for the integrated management of
business as a whole, from the viewpoint of the
effective use of management resources, to
improve the efficiency of an enterprise.ERP
software packages are integrated covering all
enterprise business functions.

Why do we need ERP?
To enable improve business performance
Cycle time reduction , Increased business agility ,Inventory reduction , Order
fulfillment improvement
To support business growth requirement
New products/product lines, new customers ; Global requirements including multiple
languages and currencies.
To provide flexible, integrated, real-time decision
support.
Improved responsiveness across the organization.
To eliminate limitation in legacy systems
Century dating issues ,Fragmentation of data and processing ,Inflexibility to change,
Insupportable technologies.
To take advantage of the untapped mid-market
Increased functionality at a reasonable cost,Client/server open systems technology,Vertical
market solutions.

Advantages Of ERP !
The indirect advantages include:
 Better corporate image.
 Improved customer goodwill.
 Customer satisfaction.
The direct advantages include:
 Improved efficiency.
 Information integration.
 Better decision making.
 Faster response time to customer queries.
 Business Integration.
 Flexibility
 Better Analysis and Planning Capabilities
 Use of Latest Technology.

The cost of ERP Software, planning,
customization, configuration, testing,
implementation, etc is too high.
There maybe additional indirect costs like new IT
infrastructure, upgrading the WAN links, etc.
Migration of existing data to the new ERP systems
is always difficult to achieve as with integrating
ERP systems with other stand alone software
systems.
Disadvantages Of ERP !

 Basis
 ABAP/4 Programming
 PS (Project Systems)
 FI (Financial Accounting)
 CO (Controlling)
 HR (Human Resource)
 SD (Sales and Distribution)
 Logistics Information System
 MM (Materials Management)
 PM (Plant Maintenance)
 PP (Production Planning)
 QM - Quality Management
 BW (Business Warehousing)
 CRM (Customer Relationship Management).
Modules Of SAP !

History Of SAP
Click This File Icon For Details

Three-Tier
ERP
(SAP)
Hierarchy

Three-Tier ERP (SAP) Hierarchy
Access to Database:
(Read / Write data)
Database
Application
Presentation
Processing of data
using application logic
Presentation of the
processed data to
the user
Input / Output
of data to users
Central Database
(Storage of all data)

Client/Server Overview
Client
Server
LAN/WAN
TCP / IP

Client/Server Overview
(Logical Structure)
Presentation
Data Storage
Application
Logic
Client
Server

What does an R/3 Database Contain?

What is a client?
A client is an autonomous unit in the R/3 System with regards to commercial
law , organization and data.

Sample SAP System Landscape
Development Testing Production
Databas
e
Servers
Applicatio
n
Servers
Presentation
Servers

Object Migration
Program A
Table A
Screen A
Program A
Table A
Screen A
Program A
Table A
Screen A
Development QA Testing Production
Corrections and Transport

Object Migration
Program A
Version 1
Program A
Version 2
Program A
Version 3
Program A
Version 1
Program A
Version 2
Program A
Version 3
Originals
Development QA Testing
Corrections
and
Transport
?
?

Geography-based Clients
R/3
America
R/3
Europe
R/3
Japan
America Client 010
Japan Client 030
Europe Client 020

Client Copies
Configuration
Development
Interface Testing
Quality Assurance
User Training

ASAP METHODOLOGY
• A=Accelerated
• This methodology explains steps & procedures to
follow for successful implementation of SAP in
Companies

SAP Partner & SAP Customer
• SAP Partner means SAP Consultancy firm
responsible for implementation of SAP.
• SAP Customer means the company where
SAP being implemented.

ASAP METHODOLOGY
1. Preparation
2. Business Blueprint
3. Configuration/Realization
4. Final Preparation
5. Go-Live & Support
6. (For all stages, Documentation is
MUST.)

ASAP METHODOLOGY
(Pictorial Representation)

Project Manager
|
|
Team Leaders
|
Functional Consultants , Technical Consultants,
Support Consultants

PREPARATION
• Agreement between SAP Partner and SAP Customer
• Scoping – Types & No. of SAP Consultants required to
execute the Project
• Formation of Steering Committee (Top most authorities of
Customer & Partner as Members of Committee) – for
smooth functioning of Project execution
• Kick-Off Meeting (First Meeting of Project Team)

BUSINESS BLUEPRINT
• Module-wise
• 100% Information about
Customer
• Preparation of Flow Cycle
• Several Workshops to
understand Business
Process
• Gap Analysis: AS IS & TO
BE
• AS IS: List-out Business
Process and output of
current system
• TO BE: Mapping AS IS in
SAP. Any Gap, List.
• Rectify Gap through ABAP
Consultant
• Questions & Answers
Database (Checklist)

CONFIGURATION/REALIZATION
• As per Business Blueprint Configuration –
Baseline Configuration

FINAL PREPARATION
• Additional Configuration work which was
not highlighted in Business Blueprint
• Legal System Migration Work-uploading
data from non-SAP to SAP
• Testing Configurations
• Training End Users
• Planning & preparation of Cut-over
activities-lock SAP system not to make any
changes

GO-LIVE & SUPPORT
• Deciding Go-Live
• UAT-User Acceptance Test (should be
prepared for all modules and sub-
modules): Sign-off by End users certifying
that no Support Issues/Remarks.

User Acceptance Test format (G L Entries)
Sl.
No
T-Code Input Expected
Output
Remarks/
Issues
OK Sign-Off
1. F-02 Rent A/c Dr
To Bank A/c
Display
Journal
entry &
post to
GLs
No amount
tolerances
Issues
to be
solved
Once it is
solved,
End user
will sign
as OK

ASAP Methodology
• It is Life Cycle Implementation
Exposure/Experience

Different Phases Of SAP
Implementation
 Pre evaluation Screening
 Evaluation Package
 Project Planning
 GAP analysis
 Reengineering
 Team training
 Testing
 Post implementation

How should we implement ERP
systems
Obtain the right mix of
People ,
Processes
Technology !!

People
Project Structure
Should be aligned to processes.
Process
Implementation Process (outlined in detail)
Adapt your processes to those of the ERP.
Technology
Hardware
Software
Integrated Systems

Critical Factors For Successful ERP
Implimentation
Commitment from Top-Management.
A Good Project Leader.
Strong Project Management.
End-User Involvement.
Team.
A Positive Attitude & Open-Mindedness.

Pre-selection Process
Package Evaluation
Project Planning
Gap Analysis Re-engineering Configuration
Implementation
Team Training Testing End- user Training
Going Live
Post – implementation
Phase
SAP implementation Life Cycle

Pre Evaluation Screening
Decision for perfect package
Number of ERP vendors
Screening eliminates the packages that are not at
all suitable for the company’s business processes.
Selection is done on best few package available.

Package Evaluation
Package is selected on the basis of different
parameter.
Test and certify the package and also check the
coordination with different department
Selected package will determine the success or
failure of the project.
Package must be user friendly
Regular up gradation should available.
Cost

Project Planning
Designs the implementation process.
Resources are identified.
Implementation team is selected and task
allocated.
Special arrangement for contegencies.

Re-Engineering
Implementation is going to involve a significant
change in number of employees and their job
responsibilities.
Process become more automated and efficient.

Team Training
Takes place along with the process of
implementation.
Company trains its employees to implement and
later, run the system.
Employee become self sufficient to implement the
software after the vendors and consultant have
left.

Testing
This phase is performed to find the weak link
so that it can be rectified before its
implementation.

Going Live
The work is complete, data conversion is done,
databases are up and running, the
configuration is complete & testing is done.
The system is officially proclaimed.
Once the system is live the old system is
removed.

End User Training
The employee who is going to use the system are
identified and trained.

Post Implementation
This is the maintenance phase.
Employees who are trained enough to handle
problems those crops up time to time.
The post implementation will need a different set
of roles and skills than those with less integrated
kind of systems.
An organization can get the maximum value of
these inputs if it successfully adopts and
effectively uses the system.

Pitfalls
Pre-implementation Around Post Go
Live
Post Go Live

ERP
Integration
Integrate people, data and business processes
within and between organizations.
Collaboration, non-redundancy, consistency
and internal process optimization.

Procurement Process
Outline
Agreement
Demand
Purchase
Requisition
Vendor
Purchase
Order
Goods Receipt
& Inventory Mgmt.
Accounts
Payable
Invoice
Verification
Scheduling
Agreement

Production Process
Goods Issue Shop Floor
Goods ReceiptOrder Settlement
Schedule/Release

Sales Process — Trading Goods
Customer Order Picking
Goods IssueBillingAccounts Receivable
Packing

Sales Process Finished Goods
Customer Order
Availability
Check
Goods Issue
BillingPartial Payment
Final Payment

Sales Process Finished Goods
Customer Order
Availability Check
- Insufficient -
Independent
Demand
MRP Run
Production
Scheduling
Purchasing
Dependent
Demand

Process Flow
Goods Issue
to Shop Floor
Goods
ReceiptProduction
Goods IssueBillingAccounts Receivable

SAP Project System (SAP PS)
Project System provides tools to track project milestone, costs
and resources. SAP's Project System module contains tight
integration to the Controlling, Human Resources, and
Logistics modules. It utilizes personnel records from HR,
rolls costs into Controlling and links to materials or
customers in the Logistics modules.
 Two key objects that define the Project in SAP are:
 Work Breakdown Structure - defines tasks and assign resources to those tasks
 Network - defines the dependencies within the Work Breakdown Structure (WBS)
 Common processes in Project System include:
 Tracking costs against WBS elements. These costs can either be from personnel
time charged against the project or from materials and/or services procured to
support the project.
 Tracking milestones against key dates defined in the project.

This is brief review of the components and processes
associated with the SAP PS module.The following diagram
illustrates the hierarchy of objects within an SAP Project:

CRM Overview :CRM Components
Marketing
People-Centric UI
Mobile Client
Applications
Interaction Center
Sales
Service
Analytics

Where does a CRM solution fit?
Who Sales ServiceMarketing Executives
What Service
Transact
Fulfill
Engage
Which way Internet Mobile Telephony
How Operational CollaborativeAnalytical
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

Marketing
 Covers mainly activities, like
Lead Generation
Customer Segmentation
Campaign Management
External List management
Product Proposals.

Sales
 Processing of the sale – from inquiry, quotation and order
through to invoice creation
 Here territories can be maintained
 Incentive & Commission Management

Service
 Service Planning & Forecasting
 Customer Service & Support
 Resource Planning & Optimization
 Service Operation Management.

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

Examples where CRM is used
Interaction Center- Call Center
Mobile Client App. – Laptops
People-Centric UI - Portal

Sales
And
Distribution
Overview

The R/3 Sales and Distribution system is
a complete solution for handling sales,
shipping and billing tasks in any
industry, and is a fully integrated
component of the R/3 System.

Sales and Distribution Processing
MATERIALSMANAGEMENT
F I N A N C I A L A C C O U N T I N G
Sales
activity
SALESINFORMATIONSYSTEM
Sales Support
Sales
Shipping
Billing
Subsequent
delivery free
of charge
Inquiry
Quotation Contract
Delivery
free of
charge
Sales
order
Returns
Scheduling
agreementUSD
Delivery
InvoiceDebit memo Credit memo

SAP R/3 Integration Model
Sales &
Distribution
Production
Planning
Materials
Management
Finance &
Controlling
Customer
Vendor
Sales Order
Shipment
Receivable Accounts / Cash Receipt
Credit Limit
Transfer of Requirements
Goods Issue
Accounts Payable
Invoice
Accounting Document
Production Cost
Production Order
Production Order Receipt

Sub-modules in HR
Personnel Management
Personnel Administration
Recruitment
Personnel Development
Benefits Administration
Compensation Management
Personnel Cost Planning
HR Funds & Position Management
Management of Global Employees
Payroll
Training & Events Management
Organizational Management
Time Management
Shift Planning
Administration
Incentive Wages
Time Sheet
Travel Management

Personnel Administration
 Hire employees with or without integration to Recruitment
and Organizational Management Component
 Central repository for employee master data which can be
accessed by all other sub-modules of HR
 Other employee actions like transfer, promotion,
confirmation, leaving etc.
 Automatic creation of employee actions using dynamic
actions
 Integration with all other sub-modules of HR
 Employee self service to view / modify certain employee
master data.

Personnel Development
• Development planning for individual position / employee as
well as for a department
• Qualifications catalog – repository to store skill sets required
and existing in the organization.
• Career planning of an employee considering criteria like
qualifications, preferences of employee, potentials,
designations and even dislikes
• Design predefined career paths which can also be used in
individual’s career plan
• Profile matching with requirement
• Integration with training sub-module

Recruitment
• Web application for employment opportunities with
application status check
• Employee self-service on employment opportunities with
application status check for internal applicants
• Create and process vacancies with / without integration to
organizational management
• Central repository for applicant master data
• Hold proposed pay-scale information for applicants
• Sequential follow up of applicant activities / automatic
creation of applicant activities
• Bulk processing of applicant master data depending on
applicant status
• SAP Business Workflow for recruitment processes

• Transfer applicant master data of selected applicants to
employee master data in HR- PA administration as employee
master data.
• Applicant correspondence by mail or letters
• Check for previous applicant
• Integration with HR-PA administration for internal
applicants
Recruitment (Contd.)

Benefits Administration
• Benefits Enrollment & Administration
• Eligibility monitoring of employees for benefits enrollment
• Different benefit plans : enrollment to plans and termination
• Benefits – USA
• Benefits Asia
• Integration with SAP's international payroll module
• Cost Summary (employer and employee) of benefits
enrollments
• Data transfer to service provider
• Standard Employee Self Service functionality for employees
to enroll for benefit plans.

Personnel Cost Planning
• Planning and administration of personnel costs based on
either projected pay, actual basic salary of employees or
payroll results
• Planning with various scenarios and comparison between
scenarios
• Integration with Controlling module of Accounting

• Model the functional and reporting structure of an enterprise
in organizational management.
• Organizational Plan and Manpower plan with various Plan
versions and statuses.
• Creation of vacancies in integration with PA - Recruitment
module
• Graphical representation of Organizational structure
• Organizational reassignment of an employee.
• Integration with PA Personnel Administration, Personnel
development, Cost planning.
Organizational Management

Time Management
• Recording and maintaining of
time data for an employee.
• Interface with selected external
time recording systems as well as
flat file transfer, or manual time
recording directly in system.
• Processing attendance and
absence data.
• Shift Planning for organizational
units considering employee
preferences.
• Calculation of incentive wages
depending on time data entered
for e.g. piecework wages and
time wages.

Travel Management
• Travel Planning
• Trip Data
• Approval of Trips
• Accounting business trips
• Reporting results of trip cost accounting

Payroll
• Payroll Process
• Payroll Data
• Country Grouping
• Payroll Area
• Processing Payroll Run
• Payroll log
• Retroactive Accounting
• Remuneration Statement
• Bank Transfer
• Posting to FI

Training and Events Management
• External & Internal Training Events.
• Resources taken into consideration while planning.
• Attendee pre-booking, booking, cancellation, rebooking
for a particular training event.
• Appraisals for Training event and Attendee both.
• Follow up of Training Event.
• Internal cost allocation and billing.
• Other features like - broacher, mail notification to
attendees.

• Enterprise structure.
• Organizational structure.
• Personnel structure.
• Payscale Structure.
• Wagetype Structure.
HR Structures

HR Structures
Personnel Structure
External
Independant
Contractant ext.
Intérimaire
Retiree
Active
Hourly Worker
Monthly worker
Executive
Manager
Senior Manager
Student
Expatrié
Sorti
Organizational Structure
Hourly Worker
Monthly worker
Executive
Manager
Senior Manager
Student
Executive
Manager
Senior Manager
Hourly Worker
Monthly worker
Executive
Manager
Senior Manager
Student
Enterprise Structure

HR Structures: Syntax
Organizational Personnel Enterprise
Organizational
unit (O)
Position (S)
Job (C)
Person (P)
Employee group
(activ, externe, …)
Employee subgroup
(employé, Exe, …)
Pers. area (New
York, Cali, …)
Pers.subarea
(Sales, Service)

• 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

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

• 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

Guidelines To Create Account And Get
Hands On Experince Of SAP
Read Article for instructions to create account
 http://ierp.us/sap/ides/free-online-sap-ides-ecc-6-0-access/
Then Go to following links to get your account created
 Go to http://www.ides.consolut.eu/user_request
 It will redirect you to
http://www.ides.consolut.eu/sap/bc/gui/sap/its/zuser_req

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