SAP
Business Integration
SAP:
S – Systems
A – Applications
P – Products
Integration through Processes
& Organization Structure
SAP Integration
Financial
Accounting
Sales &
Distribution
Materials
Mgmt.
Controlling
R/3
Production
Planning
Quality
Mgmt.
Plant
Maintenance
Human
Resources
Fixed Assets
Mgmt.
Integrated Solution
Client / Server
Open Systems
Project
System
Workflow
Industry
Solutions
Procurement Process
Outline
Agreement
Purchase
Requisition
Vendor
Scheduling
Agreement
Demand
Accounts
Payable
Invoice
Verification
Goods Receipt
& Inventory Mgmt.
Purchase
Order
Internal Order - Company Picnic
Settle Order to
Departments
Invoice
Verification
Purchase
Requisition
Purchase
Order
Goods Receipt
of Hats
Sales Process — Trading Goods
Customer Order
Accounts Receivable
Picking
Packing
Billing
Goods Issue
Sales Process Finished Goods
Availability
Check
Goods Issue
Customer Order
Final Payment
Partial Payment
Billing
Sales Process Finished Goods
Availability
Check
Customer Order
Independent
Demand
Sales Process Finished Goods
Dependent
Demand
Production
Scheduling
MRP Run
Purchasing
Sales Process Finished Goods
Production
Goods
Receipt
Goods Issue
to Shop Floor
Production Process
Goods Issue
Order Settlement
Shop Floor
Goods Receipt
FI Overview
GL
AM
AR
FI
CON
AP
Special
Ledger
Financial Accounting
External Accounting
Stockholders
Financial Position
Profit & Loss
Balance Sheet
Bankers, Lenders
External Auditors
IRS, Taxing Authority
SEC
Controlling
Internal Accounting
Executives
Department
Managers
Departmental Expense
Report
Salaries
10,000
Overhead
8,000
Other
5,000
Total
23,000
Controllers
Senior Management
Client
Highest hierarchical level in an SAP
system
 A complete database containing all the
tables necessary for creating a fully
integrated system
 Master records are created per client
 A whole business entity.
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Company
Consolidated financial statements are
created at the company level
 A company can include one or more
company codes
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– All company codes must use the same
chart of accounts and fiscal year
Company Code
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A required structure
A legally independent entity
The smallest organizational unit for which
accounting can be carried out
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The level where business transactions are processed
The level where accounts are managed
The level where legal individual financial statements,
such as the balance sheet and the profit and loss
statement, are created
A COMPANY CODE IS...
A BALANCED SET OF BOOKS
Purchasing Organizations
Organizational unit responsible for the
procurement of materials and services
for one or many plants and for
negotiating prices and terms of delivery
with a vendor
 Assignment to plant(s) is mandatory
 Assignment to company codes is
possible
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© The Dolphin Group 2002
© Rushmore Educational Services 2002
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Purchasing Groups
Is responsible for specified purchasing
activities
 Represents buyer(s)
 Used for reporting
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© Rushmore Educational Services 2002
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The Plant
Lowest valuation area
 Organizational level
where MRP runs
 Generally used to describe a production
site, a distribution center or centralized
warehouse
 May be a physical or logical unit
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© The Dolphin Group 2002
© Rushmore Educational Services 2002
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Storage Location
Subdivision of a plant
 Where materials are managed.
 May be a physical or logical unit.
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© The Dolphin Group 2002
© Rushmore Educational Services 2002
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Warehouse Management
Receiving, identifying and sorting goods
 Placing goods into storage bins
 Taking inventory
 Monitoring and inspecting goods in
storage
 Preplanning distribution of materials
 Picking and accumulating orders
 Packaging, loading and shipping goods
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© The Dolphin Group 2002
© Rushmore Educational Services 2002
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Master Data
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In SAP master data describes objects (items)
of a business like accounts, materials,
services, vendors, and customers.

The information in a master data record
usually remains unchanged over an extended
period of time.
Master Data
Business rules and supportive
information are stored in master data
records.
 Each master data record is unique in
name or number.
 Internal or external number ranges are
possible.

Accounts Payable
Master Records - Vendors
 A master
record must be created for every
vendor
 Centralized data for both MM & FI
General data
Address
Control data
Payment
transactions
Company
code data
Account
management
Payment
transactions
Purchasing org
data
Purchasing
data
Partner
functions
Vendor Master
Address screen
Vendor Name
Search Term
Street address, City, Postal code
Country
Language
Telephone, Fax, Data numbers
Address screen
Control
Payment transactions
Vendor Master
Account control
Address screen
Customer
Control
Payment transactions
Tax information
Tax juris. code
Reference information
Person subject to withholding tax
Material Master
The material group field allows similar
materials to be managed together.
 Material group is used in reporting e.g., LIS -Logistics Information System
and for workflow.

Material Master

Material master data can be related to
all organizational levels. General
information of a material (description,
number, base unit of measure) however
has to be related to the highest level of
organization - the client .
Material Master - Views
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Basic data
Classification
Sales: sales organization data
Sales: general/plant data
Sales text
Purchasing
Purchase order text
Forecasting
Material Master - Views
MRP 1, 2
 Work scheduling
 Storage
 Warehouse management
 Quality management
 Accounting
 Costing

Material Type
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The material type is used to
categorize materials.
Example: raw materials, finished goods,
trading goods, etc.
The material type defines the material
attributes, e.g., valuation, procurement,
price control
Material Types
Material Type
The material type also controls number
assignment, field selection, and account
determination.
 Standard material types are used in all
industries. The following material types
come already designed as a reference.

Material Type - Examples
– ROH - raw materials, purchased externally
only, no sales view
– HAWA - trading goods, always purchased
externally, are sold without any change to
the material, no manufacturing views exist
– FERT- finished goods are produced
internally no purchasing view exists
Material Type
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Additional material types:
– HIBE:
– VERP:
– LEER:
– KMAT:
– ERSA:
– DIEN:
Operating Supplies
Customer returnable packaging
Empty containers
Configurable material
Spare parts
Services
Material Type
– NLAG:
– UNBW:
– FHMI:
– WETT:
– PROD:
– IBAU:
Non-stock, non-valuated
material
Non-valuated, stocked
material
Production resources/tools
Competitive products
Product group
Maintenance assembly (Plant
Maintenance)
Master Data - Work Center
Specific production facility, consisting of
one or more of the following Equipment (sewing machine)
Operations (assembly line)
People (quality inspection)
Cost Center Groups
H1 (CA 1000)
Standard Hierarchy
H1000 (Company 1000)
HQ_ _
MFG_ _
Cost Center Group
Sub Headquarter
Group
Sub Manufacturing
Group
P_ _10
A_ _10
P_ _20
A_ _20
A_ _30
A_ _40
A_ _50
A_ _60
Cost Centers
P_ _30
Cost Center Groups
 Logical
groupings of cost centers
 Facilitates reporting, planning, and
allocating costs
Cost Centers
 A cost
collector or cost bucket
 A way to identify where the costs were
incurred
 A department or responsibility center such
as Finance, Accounting, Human Resources
 Must be assigned to a cost center group in
the standard hierarchy
Cost Centers
Cost center
Valid from
Name
Description
Basic data
Person in charge
Department
Cost center type
Hierarchy area
Business Area
Currency
Profit center
To
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Navigation
Standard Features of Navigation
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Logging On and Off
Screen Features
Navigation
Working with Sessions
Entering Data
On-line Help and System Messages
Setting User Defaults
Logon Screen
User
Enter the name of the SAP user.
 Users of SAP system are client-specific,
which means that having a user
identification on one client will only
allow access to that particular client.

Password Rules
Letters
 Numbers
 Easy to remember
 3-8 Characters long
 No 3 Characters can be the same
 Do not start with a ? or an !
 Do not use previous 5 passwords

Language
SAP supports multi-national character
sets and languages on the same
system, at the same time.
 Default languages are English and
German.
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Easy Access Outline Structure
Application Tool-bar
Screen Features
Title Bar
Menu Bar
Customizing
Display Options
Application
Toolbar
Entry Fields
Status Bar
Navigation
 Using menus
 Using transaction codes
 System > Status
 Using /n
 Working with multiple sessions
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Using /o
Entering Data
 Types of entry fields

Moving between fields

Radio buttons and check boxes

Possible entry fields

Match-codes

Saving data

Canceling data
Field Types

There are three types of Entry Fields
– Required
– Default entry
– Optional entry field
SAP Fields

Each field has two parts
Field Name
Entry Field
Match-codes

Match-codes find records
– Material
– Vendors
– Cost Centers
– Equipment
Sessions
An SAP session is a window in which
the user may perform a particular task.
 A User may have up to nine sessions
open at one time.

Reporting

Three basic steps to running a report
– Access the report
– Enter selection criteria
– Execute the report
On-line Help

Help on screen fields - F1
- Extended help
- Reference information
- Technical information
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Displaying possible entries - F4
Using the Help menu
- Extended help
- R/3 library
- Getting started
System Messages
 E - Error an invalid entry has
been made. The cursor
moves to the field where the
error has occurred.
 W -Warning, indicates a
possible error. The user can
continue without changing.
System Messages
I - Information
 A- Abnormal End, indicating
serious system error. Contact
system personnel.
Logging Off
 Menu Path:
System> Logoff
 Exit button
 Control Box
For security purposes it is important to log off SAP at the end of the day
or whenever you leave your PC. Your username is linked with every
transaction you perform to provide an audit trail. When reviewing
transactions or running reports the user name of the person responsible
for entering or maintaining system information is displayed.