04 29 00 SAP Functional John Tullis De Paul Instructor

04/29/00 SAP Functional John Tullis De. Paul Instructor john. d. tullis@us. arthurandersen. com Copyrighted material John Tullis 3/18/2018 1

SAP Architecture SD Business processes FI Sales & Distribution MM CO Materials Mgmt. Controlling PP Comprehensive functionality Designed for all types of business AM R/3 Production Planning QM Business Engineering Financial Accounting Fixed Assets Mgmt. Client / Server ABAP/4 Quality Management PM Plant Maintenance HR Human Resources IS Client / server architecture PS WF Project System Workflow Open systems Industry Solutions Over 5, 000 installations around the world Multinational Copyrighted material John Tullis 3/18/2018 2

SAP Logistics - SCM Supply Distribution C U S T O M E R Continuous Replenishment Program (CPR) Vendor Managed Inventory (VMI) Efficient Consumer Response (ECR) Copyrighted material John Tullis 3/18/2018 3

SAP Logistics - SCM S U P P L I E R Procurement Production Distribution C U S T O M E R Service Management Copyrighted material John Tullis 3/18/2018 4

SAP Logistics - SCM All business processes throughout the supply chain are executed in one system sharing all information Open Information Warehouse S U P P L I E R C U S Procurement Production Distribution T MM PP SD O Workflow FI Finance and Accounting CO Copyrighted material John Tullis 3/18/2018 M E R 5

SAP Logistics - SCM - Horizontal Supply Chain Management is integrated nationwide and even worldwide Production Plant Warehouse Distribution Center Copyrighted material John Tullis 3/18/2018 6

SAP Logistics - SCM - Centralized One R/3 System for all countries and regions R/3 multi-lingual multi-currency PP MM CO SD multi-plant FI multi-company Copyrighted material John Tullis 3/18/2018 7

SAP Logistics - SCM - Decentralized Decentral Execution Central Information and Planning R/3 PP MM R/3 SD Sales information FI CO R/3 PP MM CO CO SD FI A SD FI Profitability analysis Inventory information L Purchasing information E Sales and operations planning Copyrighted material John Tullis 3/18/2018 Forecasting 8

SAP Logistics Modules Customers SD Sales Shipping Invoicing PS PP Sales and operations planning Demand management/ Master production scheduling Material requirements planning MM Purchasing Warehousing Invoice verification Vendors Capacity requirements planing Production control Costing Information system Financial Accounting Cost Accounting Copyrighted material John Tullis 3/18/2018 Asset Accounting Project networks PM Plant Maintenance - repairs - maintenance QM Inspection planning & management Human Resources 9

SAP Materials Management Business Processes Financial Controlling Resource Controlling Sales & Distribution Production Capacity, Materials, Production & Test Equipment Customer order Availability check Purchasing Shipping Invoicin g Productio n plan generatio n Capacity Planned requirements order planning Production n order activity control Purchase Vendor requisition selectio n Release Goods order receipt Invoice verification QM Logistic Controlling Sales, Production, Purchasing, Warehouse Copyrighted material John Tullis 3/18/2018 10

SAP Materials Management - Procurement PS Determination of material requirements Invoice verification Acceptance of services performed Entry of services performed LV PM Inquiry Create service specifications OK Bid invitation LV Purchase order monitoring Ordering Copyrighted material John Tullis 3/18/2018 Entry of quotation Vendor selection ? 11

SAP Materials Management - Procurement Purchasing Sales Inquiry Offer Purchase order confirmation Purchase order change Confirmation of change Invoice Copyrighted material John Tullis 3/18/2018 12

SAP Procurement Quality Assurance Inquiry Technical terms of delivery Purchase order Vendor selection Goods receipt Production Technical terms of delivery Quality assurance agreement Vendor evaluation - Quality - Price behavior - Vendor's quality management system - Vendor block Inspection: incoming goods & production - Quality messages, complaints - Stock in quality inspection & blocked stock - Sample inspection - Usage decision for inspection lot - Quality score calculation Vendor rating Copyrighted material John Tullis 3/18/2018 13

SAP Warehouse Logistics Goods receipt Production Quality inspection Special stock Production warehouse Batch management Shipping Picking Batch determination STORAGE LOCATION Stock placement & removal strategy Transfer orders Production storage bin Pallets Means of transport Warehouse control unit STORAGE LOCATION MANAGEMENT Copyrighted material John Tullis 3/18/2018 14

SAP Warehouse Control SD MM PP Goods receipt Goods issue Transfer requirements WM Transfer orders Confirmation Physical inventory Copyrighted material John Tullis 3/18/2018 15

SAP Warehouse Management • • automatic generation of transfer orders additional capacity optimization functionality enhanced performance control using LIS support shelf life expiration dates integration to PP, QM certifiable interfaces to warehouse control technologies support customer individual requirements major performance enhancements Copyrighted material John Tullis 3/18/2018 16

SAP Warehouse Management • Definition and management of complex warehousing structures • Stock placements, stock removals and stock transfers • Inventory at the storage bin level • As a decentralized system • Interface to warehouse control technology complex storage area MM WM SD WM WM Copyrighted material John Tullis 3/18/2018 HOST WCU 17

SAP Materials Management Organization Corporate group 001 Company code 0001 Valuation level 0001 Purchasing organization Sales organization Plant 0002 0003 1000 2000 3000 0001 Warehouse 0001 Storage bin 100 -1 4000 0002 0003 0004 0005 0003 100 -2 Copyrighted material John Tullis 3/18/2018 100 -3 100 -4 18

SAP Sales & Distribution MASTER DATA SALES SUPPORT MM Materials Management PP PM CO SALES FI PS MM SHIPPING FI FI BILLING CO Production Planning Plant Maintenance Controlling Financial Accounting Project System Materials Management Financial Accounting Controlling DATA WAREHOUSE Copyrighted material John Tullis 3/18/2018 19

SAP Sales & Distribution USD Sales activity Sales Inquiry Contract Quotation Delivery free of charge Subsequent delivery free of charge Shipping Billing Sales order Returns Scheduling agreement Delivery Debit memo Invoice MATERIALS MANAGEMENT SALES INFORMATION SYSTEM Sales Support Credit memo FINANCIAL ACCOUNTING Copyrighted material John Tullis 3/18/2018 20

SAP Financials Quality Risk COST Time SD MM PP CO ROI IM Liquidity TR-CM TR-TM Financial Accounting Copyrighted material John Tullis 3/18/2018 21

SAP Financials Open Information Warehouse SD A/R MM A/P Material Ledger Financial Accounting PP HR Payrolls/ Travel expenses CO IM Reconciliation Ledger Fixed assets General Ledger Copyrighted material John Tullis 3/18/2018 CM Bank accounts analytical TM Financial assets operational 22

SAP . . . + Analytical cost planning based on usage factors + What if analysis + Make overhead areas more transparent Quantity x Price centers Proces s Standard consumption rate Plan l Actual SAP Financials - Activity Based Cost Management Cost centers / Processes Resource Products Quantity x Price + Analytical and operational ABC in parallel Standard consumption rate Profitability Analysis Copyrighted material John Tullis 3/18/2018 23

SAP Financials - Determining Profitability Warranty l Business risks l Cash discounts Payment Billing Delivery Order Quotation l Revenue 1 l Revenue 2 l Product costs 1 l Product costs 2 l Agency fee l Processing costs 1 l Processing costs 2 Product Geography Customer Distribution Channel Operating profit Copyrighted material John Tullis 3/18/2018 24

SAP Financials - Calculating ROI Capital Budget : Preparation IM n Generating investment proposals n Project evaluation Budget Release IM n Project selection n Investment "portfolio" Budget Execution n Processing Activities n Settlement IM CO PS projects orders Fixed Asset Management Copyrighted material John Tullis 3/18/2018 25

SAP Financials - The Modules EIS Information Warehouse Group accounting TR EC CO TREASURY ACCOUNTING CONTROLLING Funds Center Company code Business area Profitability Center Cash flow Risk Mgmt. . . IM FI Assets and liabilities Profitability Costs. . . Capital investment & financing Copyrighted material John Tullis 3/18/2018 Return on investment 26

SAP Human Resources - Hiring Process (ex. ) Notice, parental leave, transfer, long-term illness Personnel requirement Advertisement of a vacancy Transfer Application processing Hiring Individual training End Copyrighted material John Tullis 3/18/2018 27

SAP Human Resources - Hiring Process (ex. ) Job advertisement required Evaluation of tasks and requirements Internal job advertisement Job applications arrive (deadline)? Yes No Is it necessary to advertise the job externally? Internal analysis of potential Unsuitable Yes Suitable Job interview Negative Positive External job advertisement Job applications arrive (deadline)? Yes Transfer No No Application processing Copyrighted material John Tullis 3/18/2018 28

SAP General Business Needs - Utility Industry Copyrighted material John Tullis 3/18/2018 29

SAP Modules - Utility Industry Copyrighted material John Tullis 3/18/2018 30

SAP Process Industries Process industries Semi conductors Pharmaceutical Food & Beverage Copyrighted material John Tullis 3/18/2018 Chemical 31

SAP - Production Planning Module for PI PP - BD Basic Data PP - MPS Master Prod. Scheduling PP - MRP Mat. Rqmts. Planning PP - CRP Capacity Rqmts. Planning SD PP MM CO R/3 QM PP - SFC Shop Floor Control PM Copyrighted material John Tullis 3/18/2018 AM Client / Server ABAP/4 HR PP - PI Process Industries PP - PC Product Costing PP - IS Production Info System FI PS WF IS 32

SAP - Functionality needed for Process Industry l ia nt nc e na em Fi ag an m l Batch selection via customer Product l Batch, quality, prod. tracking specification design l Charge & yield calculation l certificate of analysis generation l Co/by-product processing e c vi n l Links to PCS/PI rsheet g Se esi l Production Info. Mgt d l EBR Production Distribution Supplier Sales Purchasing l Vendor specifications l Vendor performance history Vendor classification Production planning t y lit en ua m Q age an M l Multi-plant master scheduling l Batch size calculation Inventory control Copyrighted material John Tullis 3/18/2018 Customer l Customer quality specifications l Configurable orders ce an ent n te em n ai ag M an m 33

SAP - the Petroleum Industry IS-Oil Upstream functionality Acquisition Drilling Production Functionality: n Joint Venture Accounting n Materials Management n Financial & Mgmt Accounting n Property Management n Project Management n Maintenance & Equipment Mgmt n Human Resources Copyrighted material John Tullis 3/18/2018 34

SAP - the Petroleum IS-Oil Downstream functionality Industry Functionality: Acquisition/ Transport trade Manufacturing Storage/ Marketing distribution n Industry Solution n Materials Mgmt. n Financial Accounting n Controlling n Asset Management n Project System n Plant Maintenance n Human Resources n Quality Management n Production n Sales & Distribution n Workflow Copyrighted material John Tullis 3/18/2018 35

SAP The Petroleum Industry Supply Chain Gathering System Producer Contract Exchange Contract Supply Pipeline Oil & Gas Production Acquired Pipeline Batches Bulk Termina l Lubes Plant Refinery Product Pipeline Purchase Contract Chemical Plant Sales Contract Transfers, Sales, Purchases, Exchanges Exchange Contract Sales Contract Bulk Termina l Pipeline Batches Retail Stations Commercial Customers Acquisition/ trading Transport Manufacturing Copyrighted material John Tullis 3/18/2018 Storage/ Distribution Marketing 36