04/29/00 SAP Functional
John Tullis
DePaul Instructor
john.d.tullis@us.arthurandersen.com
Copyrighted material
John Tullis
3/14/2016
page 1
SAP
SAP Architecture
SD
Business
processes
FI
Sales &
Distribution
Business
Engineering
Financial
Accounting
MM
CO
Materials
Mgmt.
Controlling
PP
Comprehensive
functionality
QM
Designed
for all types
of business
AM
Production
Planning
R/3
Fixed Assets
Mgmt.
Client / Server
ABAP/4
Quality
Management PM
Plant Maintenance
Client / server
architecture
PS
Project
System
WF
Workflow
HR
IS
Human
Resources
Industry
Solutions
Open
systems
Over 5,000
installations around
the world
Multinational
Copyrighted material
John Tullis
3/14/2016
page 2
SAP
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)
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John Tullis
3/14/2016
page 3
SAP
SAP Logistics - SCM
S
U
P
P
L
I
E
R
Procurement
Production
Distribution
C
U
S
T
O
M
E
R
Service Management
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John Tullis
3/14/2016
page 4
SAP
SAP Logistics - SCM
All business processes throughout the supply chain are
executed in one system sharing all information
Open Information Warehouse
C
S
U
P
P
L
I
E
R
U
S
Procurement
MM
Production
Distribution
PP
SD
T
O
M
Workflow
E
R
FI
Finance and Accounting CO
Copyrighted material
John Tullis
3/14/2016
page 5
SAP
SAP Logistics - SCM - Horizontal
Supply Chain Management is integrated
nationwide and even worldwide
Production Plant
Warehouse
Distribution Center
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John Tullis
3/14/2016
page 6
SAP
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
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John Tullis
3/14/2016
page 7
SAP
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
R/3
PP
MM
CO
CO
A
SD
FI
L
SD
FI
E
Copyrighted material
John Tullis
3/14/2016
Profitability analysis
Inventory information
Purchasing information
Forecasting
Sales and operations planning
page 8
SAP
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
Project
networks
PM
Plant
Maintenance
- repairs
- maintenance
QM
Production control
Costing
Inspection
planning &
management
Information system
Financial
Accounting
Cost
Accounting
Copyrighted material
John Tullis
3/14/2016
Asset
Accounting
page 9
Human
Resources
SAP
SAP Materials Management Business Processes
Financial Controlling
Resource Controlling
Sales &
Distribution
Production
Capacity, Materials, Production & Test Equipment
Customer
order
Availability
check
Purchasing
Invoicing
Shipping
Production
plan
generation
Capacity
requirements Planned
order
planning
Purchase
requisition
Production
order
Vendor
selection
Release
order
Production
activity
control
Goods
receipt
QM
Logistic Controlling
Sales, Production, Purchasing, Warehouse
Copyrighted material
John Tullis
3/14/2016
page 10
Invoice
verification
SAP
SAP Materials Management - Procurement
PS
PM
Inquiry
Determination
of material
requirements
Invoice
verification
Acceptance
of services
performed
LV
Create
service
specifications
OK
Bid invitation
LV
Entry of
services
performed
Purchase
order
monitoring
Order
Ordering
Copyrighted material
John Tullis
3/14/2016
Entry of
quotation
Vendor
selection
page 11
?
SAP
SAP Materials Management - Procurement
Purchasing
Sales
Inquiry
Offer
Purchase order
Purchase order confirmation
Purchase order change
Confirmation of change
Invoice
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John Tullis
3/14/2016
page 12
SAP
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
3/14/2016
page 13
SAP
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
3/14/2016
page 14
SAP
SAP Warehouse Control
SD MM
PP
Goods receipt
Goods issue
Transfer requirements
WM
Transfer orders
Confirmation
Physical inventory
Copyrighted material
John Tullis
3/14/2016
page 15
SAP
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
3/14/2016
page 16
SAP
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
Copyrighted material
John Tullis
3/14/2016
complex storage area
MM
WM
SD
HOST
WM
WM
WCU
page 17
SAP
SAP Materials Management Organization
Corporate group
001
Company code
0001
Valuation level
0001
Purchasing organization
Sales organization
Plant
0002
0002
0003
1000
2000
3000
0001
Warehouse
0001
Storage bin
100-1
4000
0002
0002
0003
0004
0003
100-2
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John Tullis
3/14/2016
100-3
100-4
page 18
0005
SAP
SAP Sales
&
Distribution
SALES
SUPPORT
MM
Materials Management
PP
PM
Plant Maintenance
CO
SALES
MASTER
DATA
Production Planning
FI
PS
Controlling
Financial Accounting
Project System
MM
Materials Management
SHIPPING
FI
Financial Accounting
FI
BILLING
Financial Accounting
CO
Controlling
DATA
WAREHOUSE
Copyrighted material
John Tullis
3/14/2016
page 19
SAP
SAP Sales & Distribution
USD
Sales
activity
Sales
Inquiry
Contract
Quotation
Delivery
free of
charge
Subsequent
delivery free
of charge
Shipping
Sales
order
Returns
Scheduling
agreement
Delivery
Billing
Debit memo
Invoice
Credit memo
FINANCIAL ACCOUNTING
Copyrighted material
John Tullis
3/14/2016
page 20
MATERIALS
MANAGEMENT
SALES INFORMATION
SYSTEM
Sales Support
SAP
SAP Financials
Quality
Risk
COST
Time
SD MM
PP
CO
ROI
IM
Liquidity
TR-CM TR-TM
Financial Accounting
Copyrighted material
John Tullis
3/14/2016
page 21
SAP
SAP Financials
Open Information Warehouse
analytical
SD
A/R
MM
A/P
Material
Ledger
Financial
Accounting
PP
HR
Payrolls/
Travel
expenses
CO
IM
Reconciliation
Ledger
Fixed
assets
CM
Bank
accounts
General Ledger
Copyrighted material
John Tullis
3/14/2016
TM
Financial
assets
operational
page 22
SAP
...
+ Analytical cost planning
based on usage factors
+ What if analysis
+ Make overhead areas
more transparent
Quantity
x
Price
Quantity
x
Price
centers
Proces
s
Standard
consumption
rate
Standard
consumption
rate
Products
Quantity
x
Price
+ Analytical and operational
ABC in parallel
Standard
consumption
rate
Profitability
Analysis
Copyrighted material
John Tullis
3/14/2016
page 23
Plan

Actual
SAP Financials - Activity Based Cost Management
Cost centers /
Processes
Resource
SAP
SAP Financials - Determining Profitability
Warranty
 Business risks
 Cash discounts
Payment
Billing
Delivery
Order
Product
 Revenue 1
 Revenue 2
Geography
 Product costs 1
 Product costs 2
Customer
 Agency fee
 Processing costs 1
Distribution
Channel
 Processing costs 2
Quotation
Operating profit
Copyrighted material
John Tullis
3/14/2016
page 24
SAP
SAP Financials - Calculating ROI
Capital Budget : Preparation IM
 Generating investment proposals
 Project evaluation
Budget Release
IM
 Project selection
 Investment "portfolio"
Budget Execution
 Processing Activities
 Settlement
IM
CO
projects
orders
Fixed Asset Management
Copyrighted material
John Tullis
3/14/2016
page 25
PS
SAP
SAP Financials - The Modules
EIS
Information Warehouse
Group
accounting
IM
EC
TR
FI
CO
TREASURY
ACCOUNTING
CONTROLLING
Funds Center
Company code
Business area
Profitability
Center
Cash flow
Risk Mgmt
...
Assets and liabilities
Profitability
Costs
...
...
Capital investment & financing
Copyrighted material
John Tullis
3/14/2016
Return on investment
page 26
SAP
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
3/14/2016
page 27
SAP
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
No
External job advertisement
Job applications arrive (deadline)?
Yes
Transfer
No
Application processing
Copyrighted material
John Tullis
3/14/2016
page 28
SAP
General Business Needs - Utility Industry
Copyrighted material
John Tullis
3/14/2016
page 29
SAP
SAP Modules - Utility Industry
Copyrighted material
John Tullis
3/14/2016
page 30
SAP
Process Industries
Process
industries
Semi
conductors
Pharmaceutical
Food &
Beverage
Copyrighted material
John Tullis
3/14/2016
Chemical
page 31
SAP
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
FI
MM
CO
PP
R/3
QM
PP - SFC
Shop Floor Control
PM
Client / Server
ABAP/4
HR
PP - PI
Process Industries
PP - PC
Product Costing
PP - IS
Production Info System
Copyrighted material
John Tullis
3/14/2016
AM
IS
page 32
PS
WF
SAP
SAP - Functionality needed for Process Industry
 Batch selection via customer
Product
 Batch, quality, prod. tracking
specification
design
 Charge & yield calculation
 certificate of analysis generation
 Co/by-product processing
 Links to PCS/PI sheet
 Production Info. Mgt
 EBR
Production
Distribution
Supplier
Sales
Purchasing
 Vendor specifications
 Vendor performance history
Vendor classification
Production
planning
 Multi-plant master
scheduling
 Batch size calculation
 Customer quality
specifications
 Configurable orders
Inventory
control
Copyrighted material
John Tullis
3/14/2016
Customer
page 33
SAP
SAP - the Petroleum
Industry
IS-Oil Upstream functionality
Acquisition
Drilling
Functionality:
 Joint Venture
Accounting
 Materials
Management
 Financial & Mgmt
Accounting
 Property
Management
 Project
Management
 Maintenance &
Equipment Mgmt
 Human
Resources
Copyrighted material
John Tullis
3/14/2016
page 34
Production
SAP
SAP - the Petroleum
IS-Oil Downstream functionality
Industry
Functionality:
Acquisition/ Transport
trade
Manufacturing
Storage/
Marketing
distribution
 Industry Solution
 Materials Mgmt.
 Financial Accounting
 Controlling
 Asset Management
 Project System
 Plant Maintenance
 Human Resources
 Quality Management
 Production
 Sales & Distribution
 Workflow
Copyrighted material
John Tullis
3/14/2016
page 35
SAP
The Petroleum Industry Supply Chain
Exchange
Contract
Gathering
System
Producer
Contract
Supply
Pipeline
Oil & Gas
Production
Exchange
Contract
Acquired
Pipeline Batches
Bulk
Termin
al
Lubes Plant
Refinery
Product Pipeline
Transfers,
Sales,
Purchases,
Exchanges
Sales
Contract
Bulk
Termin
al
Purchase
Contract
Chemical
Plant
Sales
Contract
Pipeline
Batches
Retail Stations
Commercial Customers
Acquisition/
trading
Transport
Manufacturing
Copyrighted material
John Tullis
3/14/2016
Storage/
Distribution
page 36
Marketing