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Mr. Ahmed Galal – 4th Grade – Business – IIS – Whole Syllabus – May 2019
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Silo Effect:
 It refers to the lack of (1)information flow and (2)interactions between departments and branches. It
occurs when departments:
a) Focus only on its functional objectives instead of organizational and process goals.
b) Focus on the vertical communication without communicating horizontally.
Enterprise Systems [Enterprise Resource Planning (ERP)] Application Suite:
 It involves the package of the following 4 main applications:
1) Product Lifecycle Management (PLM)
3) Supply Chain Management (SCM).
2) Customer Relationship Management (CRM)
4) Supplier Relationship Management (SRM).
Enterprise Systems Architecture:
 It provides a conceptual framework that helps visualize the basic components, processes, and
interfaces of the major applications and stakeholders.
 It involves 2 architecture types:
A) Client-Server Architecture, which involves 3 layers: (1)Data Layer, (2)Application Layer, and
(3)Presentation Layer. It is important because server facilitates and data are stored in one place.
External / Logical
(Presentation Layer)
Conceptual View
(Application Layer)
Shared  Several Applications
Internal / Physical View
(Data Layer)
Information Structure / Warehouse
(Stable Data)
B) Service-Oriented Architecture, which is a web service that uses a standard interface (Protocol)
through which inputs are obtained and outputs are transmitted and shared.
Mr. Ahmed Galal – 4th Grade – Business – IIS – Whole Syllabus – May 2019
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Reporting Systems:
Transactional
System
Informational
System
(Business Intelligence)
 It involves using Online Transaction Processing (OLTP) software to handle
all the detailed transactional data.
 It involves using various Online Analytic Processing (OLAP) software, which
supports multi-dimensional aggregated data analysis.
Accounting Categories:
Financial Accounting
Focus  External.
 Legal Reporting (Financial Statements).
Purpose  Tracking financial impact of processes.
 Communicate with investors.
Content  Defined by laws and regulations.
Uses  External and Internal.
Management Accounting (CO)
 Internal.
 Allocating costs & revenues.
 Defined by management needs.
 Internal
N.B.: Most of the data used in the management accounting are derived from financial accounting.
Financial Statements Types:
 Financial Statements includes the following 3 main types:
1) Balance Sheet.
2) Income Statement (P/L).
3) Statement of Cash Flows.
 Accuracy is critical (SOX compliance), where it should be certified by both the CEO and the CFO.
 Financial reporting is divided into 2 categories:
a) Displaying Accounting Information
b) Generating Financial Statements.
Document Type:
 2-Digit code identifies the process that generated the document, where:
 Customer Invoice (DR)
 Goods Issue (WA)
 Customer Payment (DZ)
 Goods Receipt (WE)
Account Types:
a) Customer (D).
b) Vendor (K).
c) Asset (A).
d) Material (M).
e) General Ledger Accounts (S).
Parallel Accounting:
 An enterprise can use multiple ledgers / books for different purposes, where it might have:
a) One Leading Ledger for the whole client, where all the global records are consolidated using
International Financial Reporting Standards (IFRS). [N.B.: International Reporting is handled on the Client Level].
b) Non-Leading (Local) Ledgers for each ccompany code for local accounting practices.
Mr. Ahmed Galal – 4th Grade – Business – IIS – Whole Syllabus – May 2019
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Chapter (4)
Procurement
The Procurement Process
 It involves the activities required to (1)purchase, (2)receive, and (3)pay for the products needed.
 It flows in the following sequence and following departments:
Enterprise System Data
1) Organizational Data:
 It defines the structure of the enterprise. Such data lives long and rarely changes.
 It involves the following levels:
1) Client / Enterprise, which is the highest organizational level. It has separate master records.
2) Company Code (CC), which represents an independent legal entity / accounting unit. It is the
smallest / central level for which a complete book-keeping (financial accounting) system can exist.
3) Plant (Business Area) (Physical Premise), which involves a unit / location within one company code,
where: (1)Planning is carried out, (2)Materials are received (Warehouse), and (3)Products are created.
It involves performing multiple functions. It can be defined by product lines.
4) Storage Location (S Loc), which involves a place within a plant, where materials are stored until
needed. It involves areas designated for different types of material (Raw Materials, WIP, and Finished Goods). It is a
more sophisticated division including Storage Bins, Cabinets, and Trays.
5) Purchasing Organization (P Org), which is the department within a client responsible for
(1)identifying and selecting vendors, (2)negotiating the purchase conditions and contracts, and
(3)determining prices. It includes the following models:
a) Enterprise-Level (Cross-Company Code Model), which is one purchasing organization to all the
companies (CC) in a client. It is highly centralized. It obtains the best possible offers.
b) Company-Level (Cross-Plant Model), where each company has its own purchasing organization.
c) Plant-Level (Plant-Specific Model), where each plant has its own purchasing organization. It is highly
decentralized.
d) Reference Purchasing Organization, which is one centralized purchasing organization for highlevel decisions (needs & Opportunities) across the enterprise.
6) Purchasing Group, which refers to the experienced buyers responsible for certain materials, who
can be internal to the company or external. It carries out the day-to-day purchasing activities.
Mr. Ahmed Galal – 4th Grade – Business – IIS – Whole Syllabus – May 2019
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2) Master Data:
 It refers to the long-term data that represents the entities associated with various processes
including (1)materials / products, (2)vendors / suppliers and (3)customers.
 The 4 master data types relevant to the purchasing process are (1)material master, (2)vendor
master, (3)purchasing information records, and (4)conditions.
A) Material Master Data:
 It is used in numerous processes.
 It is used for several Material Types including:
[(ROH  HALB  FERT) + (HAWA)]
a) Raw Materials (ROH), which are purchased to be used in production, not sold. Accordingly it
involves purchasing and production views, with no sales-related view.
b) Semi-Finished Goods (HALB), which are produced using other materials (ROH) to be used in the
production of other materials (FERT). It is neither purchased nor sold. It has a production view.
c) Finished Goods (FERT), which are produced using other materials (ROH, HALB) and sold to the
customers. It has a sales view with no purchasing-related view.
d) Trading Goods (HAWA), which are purchased and resold without additional processing. It has a
purchasing and sales view with no production-related view.
 It is used for several Organizational Levels, where the same material can be used differently
by different organizational levels.
 It is grouped by different User Areas / Views including:
a) Forecasting, which is for the planning process.
b) Materials Requirement Planning (MRP), which is for the production process.
c) Work Scheduling, which is for the production process.
d) Sales, which is for the fulfillment process.
e) Warehouse Management, which is the most important view.
B) Vendor Master Data:
General / Basic Data
Accounting / Financial Data
Area – Specific Data
(Client) (Across CC)
(Company Code)
(Purchasing Organization)
 Name.
 Payment Terms and Methods.  Delivery Terms.
 Address.
 Bank Information.
 Contact Information.
C) Purchasing Information Record:
 It refers to one information record that relates / combines vendor and material data.
 It involves the following conditions:
a) Pricing Conditions including gross price, discounts and surcharges, taxes and freight / shipping.
b) Obtained from (1)purchasing information records, (2)contracts and agreements, or any (3)other
sources.
Mr. Ahmed Galal – 4th Grade – Business – IIS – Whole Syllabus – May 2019
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3) Transaction Data:
 It refers to the data generated during the execution of the day-to-day transactions / processes.
 It includes data about who, what, when, where, how and how much (Situational Data).
 It requires the existence of (1)organizational, (2)master and (3)situational data.
Example: Sales order creation involves:
Master Data
Organizational Data




Client.
Company Code.
Plant.
Business / Sales Area.
Situational Data
 Who (Person).
 When (Time).
 Where (place).
N.B.: Situational Data changes from one receipt to another.
Goods Movement
 It refers to the stocks classified into different types to determine the usability of
Stock material. It involves the following classifications:
Types
a) Unrestricted use.
a) Blocked stock (damaged, unusable; wrong delivery).
(Statuses)
b) In quality inspection.
b) Stock in transit.
 It refers to the transaction that causes a change in stock (value or status).
 It includes the following 4 Categories / Types:
Goods  It involves the physical movement of goods from vendor or production process.
Receipt  It records receiving goods.
Goods  It involves the physical movement to a customer or to internal process.
Issue  It records selling goods.
Stock  It involves the physical movement of materials between storage locations.
Transfer  It involves no transactions.
Transfer  It results in changing the material stock type / status, which may or may not
Posting involve the physical movement.
Mr. Ahmed Galal – 4th Grade – Business – IIS – Whole Syllabus – May 2019
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Procurement Process
1) Purchase Requisition Step:
Trigger
Data
Task
Output
 Manual or Automated Materials Requirements Planning (MRP).
a) Organizational Data.
b) Material Master Data.
c) Vendor Master Data.
d) Purchase Information Record.
e) User Input (Situational Data).
 It involves no tasks.
 It involves issuing the Purchase Requisition Form.
N.B.: This step doesn't generate any managerial or financial accounting or material documents.
2) Purchase Order (PO) Step:
Trigger  It involves the requirements from the other processes.
 It involves:
a) Master Data (Material, Vendor, Purchase Information Record, Contracts and Agreements).
Data
b) Transactional Data, which includes Requisition, RFQ, and Quotation.
c) User Input (Situational Data).
 It involves:
a) Selecting the vendor / supply source.
Task
b) Communicating with the vendor to confirm logistics and delivery details.
c) Creating and sending purchasing order to the vendor.
 It involves issuing the Purchase Order.
Output
 It also involves updating the Purchase Requisitions.
3) Goods Receipt Step:
Trigger  It involves delivery from vendors.
 It involves:
a) Material Master Data to provide data about the materials ordered.
Data
b) Transaction Data to provide data about the materials actually received.
c) User Input (Situational Data).
 It involves:
Task a) Verifying the materials received.
b) Creating Goods Receipt (GR) Document to record the materials received.
- Material Documents (Goods Receipt), which records data of the goods movement.
- Material Master Update.
- Purchase Order Update.
Output - Financial Accounting (FI) Documents.
- Goods Receipt / Invoice Receipt (GR/IR) Accounts, which is a clearing account that
checks the quantity of goods received against the quantity of goods invoiced.
- General Ledger (GL) Accounts.
Mr. Ahmed Galal – 4th Grade – Business – IIS – Whole Syllabus – May 2019
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4) Invoice Verification Step:
Trigger  It involves the invoice received from the vendors.
 It involves:
Data
a) Vendor Invoice.
b) Purchase Order.
c) Material Document.
 It involves:
Task
a) Three-Way Match (purchase order - goods receipt / delivery document – invoice)
 It doesn't involve issuing new documents. However it involves updating:
- Invoice Documents.
Output - Goods Receipt / Invoice Receipt (GR/IR) Accounts.
- Financial Accounting (FI) Documents.
- General Ledger (GL) Accounts.
5) Payment Step:
Trigger  It involves the verified invoice.
 It involves:
a) Vendor Master Data.
Data
b) Transaction Data.
c) User Input (Situational Data).
 It involves:
a) Selecting the payment method.
b) Selecting the bank.
Task c) Selecting the items whose invoices are ready for payments.
d) Calculating the payment amount (discounts).
e) Posting the payment documents.
f) Printing the payment medium.
 It also involves the actual payments (checks – electronic), which results in updating:
- Material Master Update (Stock and Value), if using moving average price.
Output
- FI Documents.
- GL Accounts (Vendor Account, AP, GR / IR).
Reporting
 It involves preparing lists and reports, which is essential due to the existing massive
organizational, master and transactional database.
 It involves 2 main types of reporting:
a) Instance / Status-Level Reporting, which reflects the status of a particular procurement process,
which is presented to the higher-level managers.
b) Process-Level Reporting (Logistics Information), which is used to update the purchasing
information system.
Mr. Ahmed Galal – 4th Grade – Business – IIS – Whole Syllabus – May 2019
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Chapter 5
The Fulfillment Process
Fulfillment
Process
 It involves the activities required to deliver products to customers, which flows in the
following sequence
Enterprise System Data
1) Organizational Data:
1) Client.
2) Company Code (CC).
3) Plant, which involves an organizational unit / location within a company code, where goods are
shipped to the customers. It includes the factory, storage, office, distribution center, … etc.
4) Sales Area, which is a unique combination of the following 3 other organizational elements:
a) Sales Organization, which is the department within a company code responsible for
(1)distributing goods and services, (2)negotiating sales conditions, and (3)product liability and rights for
a particular geographical area.
b) Distribution Channel (DC), which is the responsible for delivering products to customers. It
includes wholesalers, retailers, and online sales.
c) Division, which is used to consolidate materials with similar characteristics, product line, each
having its own sales strategies.
Distribution Chain
 It refers to the combination of sales organization & distribution channel.
5) Storage Location, which involves a place within a plant, where finished goods are stored until
shipped.
6) Shipping Point, which is a location in a plant from which outbound deliveries are shipped.
7) Credit Control Area, which determines (1)customers’ creditworthiness, (2)establishes credit limits,
and (3)monitors and manages extending credit to customers. It includes 2 main systems:
 It involves having one credit control area for all the company codes in the
Centralized
enterprise.
 It involves having more than one credit control area in the enterprise, where
Decentralized
each credit control area manages credit for one or more company codes.
Mr. Ahmed Galal – 4th Grade – Business – IIS – Whole Syllabus – May 2019
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2) Master Data:
The Customer Master Data includes data needed to conduct business with customers.
 It is divided into the following 3 segments:
General / Basic Data Accounting / Financial Data Purchasing / Area – Specific Data
(Client)
(Company Code)
 Name.
 Payment Terms.
 Address.
 Bank Information.
 Contact Information.  Reconciliation Account.
 Account Number.
(Sales Area)
 Sales and Shipping.
 Billing and Pricing.
 Currency.
 It involves the master data specific to one customer and one material.
N.B.: Data in the material master apply to all customers. Data in the
customer master apply to all purchases made by a particular customer.
Customer – Material
Information Record Examples:
 Cross References.
 Specific Terms (shipping – deliveries).
 Alternate Delivery Plant.
Credit Management
 The Credit Management Process determine if credit should be granted to a customer, where
credit is checked when:
a) Sales order is created.
b) Delivery is changed.
c) Post goods issue.
 Approval is based on the Credit Exposure, which include the sum of (1)open orders, (2)deliveries,
(3)open invoices, and (4)current order value.
 It results in the following outcomes including:
a) Warning and continuing.
b) Error and termination.
c) Block delivery.
Mr. Ahmed Galal – 4th Grade – Business – IIS – Whole Syllabus – May 2019
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Fulfillment Process
1) Goods Issue (Shipping) Step:
 This step involves the following:
a) Updating the billing due list.
b) Updating the sales documents.
c) Creating a Material Documents (Goods Issue).
d) Creating a Financial Accounting (FI) Document (Inventory & CGS).
e) Updating the GL accounts.
f) Creating a controlling (CO) Document.
2) Billing Document Step:
This step involves the following:
a) Creating the billing document (invoice).
b) Creating a controlling (CO) Document (Profitability Analysis).
c) Updating the Material Documents (Goods Issue).
d) Creating a Financial Accounting (FI) Document, (Sales & A/R).
e) Updating / reducing customer credit.
f) Updating the GL accounts.
3) Payment:
 This step involves the following:
a) Updating the Financial Accounting (FI) Document. (Cash & A/R).
b) Updating / increasing customer credit.
c) Updating the GL accounts.
Mr. Ahmed Galal – 4th Grade – Business – IIS – Whole Syllabus – May 2019
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Chapter (6)
Production
The Production Process
 It involves the activities required to produce several goods and services.
Enterprise System Data
1) Organizational Data:
 It involves the following levels:
1) Client.
2) Company Code (CC).
3) Plant (Business Area) (Physical Premise), which involves includes the factory.
4) Storage Location (S Loc).
2) Master Data:
 It identifies the components needed to make one unit of material, where each
component can have its own BOM, which creates a multi-level BOM.
 It is used in (1)Planning, (2)Production, (3)Procurement and (4)Product Costing.
Bill
Of
Materials
(BOM)
Product
Routing
 BOM Structure:
Header
 It applies to the entire BOM.
 It involves:
a) Status  Active or Inactive Production.
b) Base Quantity, which shows the
amount of materials needed to make the
base quantity (1 Unit).
c) Usage.
d) Plant.
e) Validity, which shows the date range.
Items
 It applies to specific items in BOM.
 It involves:
- Stock Item, which must have a
material master.
- Non-Stock Item, which doesn't have a
material master
- Variable-Sized Item, where the size
must be specified.
- Document Item, which involves extra
diagrams and instructions.
- Material Number.
- Quantity.
 It illustrates the steps necessary to produce a material, which involves determining:
a) Operations.
c) Work Center.
b) Sequence (Standard, Alternate and Parallel). d) Time (Setup, Machine, and Labor).
Mr. Ahmed Galal – 4th Grade – Business – IIS – Whole Syllabus – May 2019
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Component  It specifies the relationship between a BOM and a Routing, where it assigns
Assignment components either to a route or to a specific operation within routing.
 It specifies the machines needed in the capital-intensive industries and specifies
the labor needed in the labor-intensive industries.
 It includes the following categories:
Work
Center
Production  It is a measure of how many units of a material a plant can produce.
Capability
 It is the data needed to execute transactions related to the materials.
Material
 It is used for several Material Types including: Raw Materials (ROH), SemiMaster
Finished Goods (HALB) and Finished Goods (FERT).
 It determines the shared movable inputs and objects required for production
among, and moved between, different work centers.
Production
Resource  PRT includes the following items:
Tools
a) Movable Equipment / Machines.
(PRT)
b) Documents (Instructions).
c) Materials (Calibration / Measurement Tools).
d) Miscellaneous.
Mr. Ahmed Galal – 4th Grade – Business – IIS – Whole Syllabus – May 2019
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Production Process
1) Request Production:
Trigger  It involves the need for materials by other processes (Production Requisition).
 It involves:
a) Organizational Data (Client, CC, Plant and Storage Location).
Data
b) Master Data (Material, BOM, Routings).
c) User Input.
 It involves Creating Planned Order, which determines (1)what materials are
Task
needed, (2)how many and (3)when.
Output  It involves issuing the Planned Order.
2) Authorize Production:
Trigger  It involves the Planned Order.
 It involves:
a) Organizational Data (Client, CC, Plant and Storage Location).
Data
b) Master Data (Material, BOM, Routings).
c) User Input (Situational Data).
 It involves:
d) Component Assignment.
a) Creating Production Order.
Task
b) Routing Selection.
e) PRT Assignment.
c) BOM Selection.
 It involves:
Output a) Scheduling.
c) Preliminary Costing.
b) Availability checks.
d) Purchase Requisitions.
N.B.: The Production Order authorizes the following:
a) What material is to be produced?
d) Where will they be produced?
b) How many?
e) What resources are to be used?
c) When?
f) How much is it expected to cost?
3) Order Release:
 It involves turning the Order Created (CRTD) to Order Release (REL).
Trigger  It involves the Order Creation.
 It involves:
Data a) Order Number.
b) System Parameters.
Task  It involves the Order Release, which permits the following tasks.
 It involves:
Output a) Print Shop Papers.
b) Communicate with Post-Dated Checks (PDC) System.
Mr. Ahmed Galal – 4th Grade – Business – IIS – Whole Syllabus – May 2019
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4) Goods Issue:
Trigger  It involves the Order Release
 It involves:
a) Organizational Data (Client, CC, Plant and Storage Location).
Data b) Master Data (Material).
c) User Input (Situational Data).
d) Production Order (Components, Quantities, Reservation, and Status).
 It involves the following:
Task
a) Material Staging.
b) Goods Issue.
 It involves:
Output a) Updating Material Master.
c) Updating GL Accounts.
b) Updating CO and FI Documents.
d) Updating Actual Costs.
N.B.: Material staging is the process in which component materials are moved from storage and
prepared for use
5) Confirmations:
 It involves both Order Level confirmation and Operations Level confirmation.
Trigger  It involves the Production Steps Completion.
 It involves:
a) Production Order (Planned Values, Operations, Control Keys).
Data
b) Order Progress Report.
c) User Input (Order Number, Quantity, Activities, Dates, Duration, Work Centre, Personnel, Variances).
 It involves the following:
Task
a) Order-Level Confirmation.
b) Operation-Level Confirmation.
 It involves:
Output a) Work Confirmation.
c) Updating Capacity Reservations.
b) Automatic goods Receipt.
6) Goods Receipt:
 It involves goods receipt into storage.
Trigger  It involves Confirmation.
 It involves:
a) Organizational Data (Client, CC, Plant and Storage Location).
Data
b) Master Data (Material).
c) User Input (Production Order Number, Quantities, Dates, Locations).
 It involves the following:
Task
a) Goods Receipt.
b) Transfer Requirements.
 It involves:
a) Updating Material Master.
d) Updating GL Accounts.
Output
b) Updating Production Orders.
e) Updating Actual Costs.
c) Updating CO and FI Documents.
Mr. Ahmed Galal – 4th Grade – Business – IIS – Whole Syllabus – May 2019
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General Notes
 Functional Organizational Structure is the most common organizational structure.
 Enterprise Resources Planning (ERP) was previously named Materials Requirements Planning
(MRP). It allows a single view of the customer.
 SAP Net-Weaver is the primary Enterprise Operating System (Computing Platform) of the SAP, which
was introduced in 2003. It even integrates non-SAP applications.
 Business Processes refer to the sequence of tasks or activities that produce the organizational
desired outcomes.
Work Lists  It refers to the list of the work to be completed.
Online Lists  It refers to the list display for the documents used.
(To Do List)
 Financial accounting is obligatory at the company code.
 Accounts are divided into balance sheet accounts and income statement accounts.
 The general ledger records the financial impact of all the processes by double-entries.
 Data in the general ledger accounts are segmented by the organizational level.
 The reconciliation accounts, are part of the general ledger accounts.
 Subsidiary ledgers are not part of the general ledger, where they separate the accounting for
customers, vendors, and assets.
 Objects that can absorb costs are called Cost Objects, where the locations where costs are
incurred are called Cost Centers.
 Transactions recorded in the general ledger are not Master Data, but it is a situational data.
 Accounts Payable Accounting is concerned with dealings with vendors / suppliers, where it
involves a sub-ledger that tracks money owed to vendors recorded in a Vendor Master File.
 Asset Acquisition is concerned with the external acquisition / purchasing of assets.
 Asset Depreciation is concerned with the decrease in the value of assets over time.
 Asset Retirement is a closing account concerned with the retirement of asset after its useful life.
 Asset Explorer is concerned with providing an overview of all the activities related to the assets.
 General ledger posting requires the existence of both Chart of Accounts and Company Code.
 Purchase Orders, Production Orders and Sales Orders are triggers for incurring costs and creating
a FI Document.
 Goods Receipt / Invoice Receipt (GR/IR) Accounts, which is a clearing account that checks the
quantity of goods received against the quantity of goods invoiced
Mr. Ahmed Galal – 4th Grade – Business – IIS – Whole Syllabus – May 2019
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 A goods movement will always result in creating a material document. If the movement results
in a change in valuation, then a financial accounting document will be created.
 The Purchasing Group serves as the main point of contact with vendors.
 The Vendor – Purchasing Data is separate for each purchasing organization.
 A purchase order (PO) is a formal communication to a vendor that represents a commitment to
purchase the indicated materials under the stated terms.
 InCo Terms defines the responsibilities and costs of shipments.
 The Purchase Requisition is generated from the production department when they face shortage in
any particular item.
Manufacturing Types:
 It involves producing tangible products that can be countable, where:
a) Repetitive Manufacturing involves producing the same products, with certain
Discrete
quantities, over a certain period of time to be stocked.
and
b) Discrete Manufacturing involves producing the same products with certain
Repetitive
small quantities (batches), over a certain period of time to be stocked. However
without repeating these batches.
 It involves producing certain types of products that aren't manufactured in
Process
individual units, where it is produced in gallons, liters, kilos such as Paints, Soft
Manufacturing
Drinks, Sugar, Flour and Oil, which can't be counted.
—
 Materials needed (with planned order) involves converting the Planned Order to Production Order.
However materials needed (without planned order) involves creating a Production Order.
 Cost Estimates in a Production Order
a) Planned Cost, which involves the planned cost for the planned quantity.
b) Target Cost, which involves the planned cost for actual quantity.
c) Actual Cost, which involves the actual cost for actual quantity.
Regular Reviews.
Overhead
 It involves the Indirect Costs accumulated in the cost centers, and
Calculation
periodically allocated to the production orders based on predetermined rules.
Work In
 It refers to inventory between Goods Issue (GI) and Goods Receipt (GR).
Progress
 Its cost is periodically calculated and posted to the general ledger.
Determination N.B.: It isn't essential when short-run production processes or value of materials isn't high.
 It involves settling the difference between planned and actual costs (variance),
Settlement
where only the panned costs are posted.
Mr. Ahmed Galal – 4th Grade – Business – IIS – Whole Syllabus – May 2019
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Reporting:
 It involves the following 2 main types of reports:
1) General SAP Reporting Options, which involves:
a) Online Lists.
b) Work Lists.
c) Analytics.
2) Production-Specific Reporting Options, which involves the Stock / Requirement Lists.
FI Document Structure:
Header
Document Type
Document Number and Date
Company Code
Posting Date
Currency
Reference Number (Person Name – Transaction Number)
Line Items (Details)
Account
Description
Posting Key (Debit / Credit)
Amount
Material Document:
Header
Document Number
Created By
Date
Reference (Person Name – Transaction Number)
Line Items (Details)
Material (Number and Description)
Quantity
Location
Movement Type
Other Data (Customer / Vendor)
Purchase Order:
Header
Purchase Order Number
Purchase Order Data
Payment Terms
Currency
Vendor
Line Items (Details)
Material (Number and Description)
Order Quantity
Price
Delivery Date
Sales Order Structure:
Header
Dates
Terms
Customer Data
Line Items (Details)
Item Number
Quantity
Schedule Lines
Date
Order Quantity
Delivery Quantity
Mr. Ahmed Galal – 4th Grade – Business – IIS – Whole Syllabus – May 2019
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Delivery Document Structure:
Header
General Data
Line Items (Details)
Item Number
—
Material
Quantity & Weight
Header
Payer
Billing Date
Totals
Line Items (Details)
Item Number
Materials
Quantity & Value
Billing Document Structure:
 A client may have several company codes.
 A client can have more than one storage location.
 A company code belongs to one client.
 A company code must have at least one plant.
 A company code must have at least 1 sales organization.
A plant must be assigned to one company code.
 A plant must have at least one storage location.
 A plant can have more than one sales area.
 A plant can have more than one shipping point.
 A plant can be assigned to more than one distribution chain.

 A storage location can belong to only one plant.
 A sales organization must have at least one distribution channel.
 A sales organization must have at least one division.
 A sales area can be assigned to only one company code.
 A sales area can have one distribution channels.
 A distribution channel can be assigned to more than one company code.
 A distribution channel can be assigned to multiple sales areas.
 A distribution chain can be associated with more than one plant.
 A shipping point is associated with one or more plants.
 A product or material can be assigned to one division only.
 A production order must contain at least one operation.
Mr. Ahmed Galal – 4th Grade – Business – IIS – Whole Syllabus – May 2019
18
Assignment – Related Important Points
Code
Process
XKO1 Creating New Vendor
XK02
Changing Vendor
XK03
Displaying Vendor
Code
MMR1
MMF1
MMB1
MMH1
Process
Creating Raw Materials
Creating Finished Goods
Creating Semi-Finished Goods
Creating Trading Goods
Code
Process
CSO1 Creating BOM
CSO2 Changing BOM
CSO3 Displaying BOM
SAP Consultant Versus SAP Users
SAP Consultant
SAP End User
 Builds SAP System (from scratch).
 Uses SAP System to create or modify
Function
 Needed Modifications & Updates.
various business related tasks.
 Extensive SAP knowledge.
 SAP Training and SAP certification.
 Extensive Domain knowledge.
Requirements
 Presentation & Communication Skills.
 Teamwork Skills.
 Consult with the customer.
 Performing business tasks using SAP.
 Design SAP system.
 Collecting information from the SAP.
Roles
 Facilitate SAP System implementation.
 Needed Modifications & Updates.
 Customer Advise & Guidance.
Main Task
Key Areas
Standard
Language
Software
SAP Versus Oracle
SAP
Oracle
 ERP System that focuses on  ERP System that focuses on MultiCross-Functional Integration and Dimensional Database Management
Information Flow.
System (DBMS).
 Application + Database.
 Database.
 ABAP.
 SQL.
 Complex.
 Less User - Friendly.
 More Expensive.
 Large and Small.
 Small & Massive
 One Single Interface.
 Easier.
 More User - Friendly.
 Less Expensive.
 Large.
 Massive
 Several Separate Interfaces.
Cost
Companies
Data
Functional
Interfaces
Implementation  Faster (4 Months).
 Slower (22 Months).
Time
 Solution Suite including HCM,  Solution Suite including HCM, CRM,
Solutions
CRM, SCM.
SCM.
Currencies
 Multiple.
 Multiple.
(Languages)
Mr. Ahmed Galal – 4th Grade – Business – IIS – Whole Syllabus – May 2019
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