Intro to SAP Enterprise
Systems Configuration
EGN 5620
Enterprise Systems Configuration
Spring, 2015
SAP ERP Introduction



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Enables a company to link it’s business
processes
Ties together disparate business
functions (integrated business solution)
Helps the organization run smoothly
Real-time environment
Scalable and flexible
January 2008
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2
SAP ERP Introduction

Central relational database
◦ Oracle, Informix, Microsoft SQL, etc.
Client/Server – three-tiered for
database, application, and presentation.
 ERP Components – Oriented towards
common identifiable business modules:

◦ MM, SD, PP, FI, CO, HR, WM, QM, PM

Add-ons:
◦
◦
◦
◦
Customer Relationship Mgmt (CRM)
Supply Chain Mgmt (SCM)
Product Lifecycle Mgmt (PLM)
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3
Relational Database
Tables: Defines and links a couple of tens
thousands of tables of information
(25,000+)
 Advantages

◦
◦
◦
◦
Consistent and accurate data
Common definitions for terms
Shared, but restricted usage (e.g., profiles)
Eliminates data redundancy
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4
Client/Server Environment

Server
◦ Software/hardware combination that can
provide services to a group of clients in a
controlled environment

Client
◦ Software/hardware combination that can
make a request for services from a central
repository of resources
January 2008
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5
Three-Tier SAP Structure
GUI – Graphical User Interface or Web
Interface
 Application server (one or many)
 Database server (one single location)

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SAP Enterprise System
PCs, Laptops, etc.
Browser Client
Network
Web Server
Internet
Transaction
Server
Presentation
Application
Application
Servers
Database
Database
January 2008
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reserved.
7
Enterprise Systems (history & Evolution)
SAP ERP Introduction

Instance – each install of the SAP ERP
software on an individual application
server

Configurable – each instance can be
distinctively configured to fit the needs and
desires of the customer (within limits)

Most of the infrastructure decisions,
including configuration decisions, occur
during project implementation
January 2008
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SAP Configuration

The process of tailoring SAP software by
selecting specific functionality from a list of
those supported by the software, very
much like setting defaults (e.g., Word,
Access)

DOES NOT involve changes to the
underlying software code
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Programming Code Modifications

Changes to the delivered code

ABAP/4 – Advanced Business Application
Programming (ABAP)

This should be done carefully as it can
make migration to new versions of the
software much more difficult
January 2008
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11
SAP Data Types

Required data types:
 Organizational levels (data, elements)
 Master data
 Transactional data (e.g., documents)
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Data Type 1: Organizational Levels

Defines the enterprise structure in terms of legal or
business purposes, including legal entities, plants, storage
areas, sales organizations, profit centers:
 Client (e.g., 320)
◦ Highest organizational level
◦ Represents the enterprise consisting of many
companies
 Business area (e.g., BI##)
◦ An organizational unit within financial accounting. It
corresponds to a defined business segment or area of
responsibility, to which you can assign value
movements recorded in Financial Accounting.
 Company Code (e.g., US##)
◦ Identifies legal entities in an enterprise
◦ Central organizational element in financial accounting.
Data Type 1: Organizational Levels
 Organizational levels in Logistics
◦ Plants (e.g. DL##, MI##, SD##)
 Represents factory, warehouse, office, distribution
center, etc.
◦ Storage locations
A location within a plant where materials are stored
At plant DL##: FG##, SF##, RM##, MI##
At MI##: FG##, MI##, TG##
At SD##: FG##, MI##, TG##
Data Types 1: Organizational Levels
Client
GBI
Enterprise (320)
GBI
Company Code
Plant
Storage
Locations
Company 1
GBI
Company 2
DL##
DL##
MI##
MI##
RM ##
MI##
SD##
SD##
TG##
FG ##
SF ##
Data Type 1: Organizational Levels
 Organizational levels in
Accounting
 Client
 Company code
 Business area
 Controlling area
 Operating concern
 Organizational levels in
procurement
 Purchasing organization
 Purchasing group
 Plant
 Storage location
 Organizational
levels in
fulfillment (sales)
 Sales organizations
 Divisions
 Distribution channel
 Sales areas
 Shipping point
 Plant
 Storage location
 Organizational levels in PP
 Plant
 Work Center
 Storage location
 Shipping Point
Enterprise Structure Example
Procurement
DL##
Shipping Point
RM##
Storage Location
SD##
TG##
TG##
SF##
FG##
MI##
FG##
MI##
FG##
MI##
TO##
HD##
RM##
TG##
FG##
SF##
MI##
FG##
HH##
TG##
FG##
FG##
MI##
MI##
Central Purchasing Organization
Purchasing Org. US## CA##
PO DE##
(global) GL##
Purchasing Group North America
N##
DL##
Miami
MI##
CC US##
Client GBI
TG##
MI##
MI##
Dallas
PE##
S. Diego
SD##
Toronto
TO##
CA##
PGr Europe
N##
Heidelb. Hamburg
HD##
HH##
CC DE##
AU##
Asia
AS##
Perth
PE##
AU##
Enterprise Structure Example
Sales
and Distribution
Distribution Channel
Wholesale WH
Distribution Channel
Internet IN
SO West
SO West
SO North
SO North
SO North
UW##
CW##
DN##
GN##
AN##
SO East
SO East
SO South
SO South
SO South
UE##
CE##
DS##
GS##
AS##
CC DE##
CC GB##
CC AU##
CC US##
CC CA##
Credit Control Area (global) GL##
Client GBI
Data Type 2: Master Data
◦ Long term data that represent entities of:
 Procurement
◦ Vendor
◦ Material
◦ Info records, source list
 Fulfillment (Sales & Distribution)
◦ Customer
◦ Material
◦ Conditions (pricing, output)
 Production
◦ Bills of material
◦ Work centers
◦ Product routings
Types of Data 3: Transaction Data
◦ Data generated during executing process (steps)
combining:
 Organizational levels
 Master data
 Situational data (who, what, when, and where)
◦ Example: sales order
 Organizational levels: customer, company code,
sales area
 Master data: customer master, material master
 Situational data: date, time, person, quantities
Types of Data 3: Transaction Data
•
Document concept
◦ An electronic record of transactions
◦ Each transaction creates document(s)
•
Document types
◦
◦
◦
◦
Financial accounting documents (FI)
Management accounting documents (CO)
Material documents (goods movement, MM)
Others
SAP ERP Document Principle
Each business transaction that writes data
to the database creates a uniquely
numbered electronic document
 Each document contains information such
as

◦ Responsible person
◦ Date and time of the transaction
◦ Commercial content

Once created, a document can not be
deleted from the database
January 2008
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rights reserved.
22
Document Example: Purchase order
Global Bicycle Incorporated
PURCHASE ORDER
5215 N. O’Conner Blvd.
Dallas, Texas, 75039
Phone: +1.972.555.2000
Purchase Order Number: 4546
Fax:
+1.972.555.2001
THE PURCHASE ORDER NUMBER MUST APPEAR ON ALL RELATED CORRESPONDENCE, SHIPPING PAPERS, AND INVOICES
TO:
SHIP TO:
Olympic Protective Gear
2100 Summit Boulevard
Atlanta, GA, 30319
GBI San Diego Distribution Center
150 Spear Street
San Diego, 94105
+1-415-555-7700
Header
Purchase Order #
P.O. DATE
Delivery Date
Shipped VIA
F.O.B. Point
Payment Terms
4546
July 11, 2009
July 27, 2009
Ground
Destination
Net 30
Quantity
Material #
100
KPAD 2160
Material Description
Knee Pads
Unit Type
Each
Unit Price
37.50
Item Total
3,750.00
100
EPAD 2130
Elbow Pads
Each
37.50
3,750.00
50
OHMT 2220
Off-road Helmets
Each
25.00
1,250.00
SUBTOTAL
$ 8,750.00
SALES TAX
Exempt
SHIPPING & HANDLING
OTHER
ORDER TOTAL
Included
N/A
$ 8,750.00
,
Authorized by: __________________________________________________
Purchasing Manager
Date: ____________________
Line items
PEN, Inc.
System Configuration
Introduction
Learning by Creating a Model
Business





Understanding business processes and
their integrative nature
Understanding SAP organizational
structures
Combining business processes and SAP
organizational structure (i.e.,
configuration)
Test the newly configured system
View system outputs - statistics, reports,
and graphics
January 2008
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rights reserved.
25
GBI Inc.





A company in the promotional Bike business
buy and re-sell different lines of promotion
bikes
sell to both wholesale and Internet
with a production facility DL##, at Dallas
to manufacture its own product and two
distribution centers MI## at Miami, and
SD## at San Diego.
with two sales organizations UE## and
UW## and one purchase organization
US##.
January 2008
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26
Enterprise Structure
Client (320)
Credit Control
Area (GL00)
Business
Area (BI##)
Chart of
Accounts (GL##)
Fiscal Year
Variant (K1)
Controlling
Area (NA ##)
Company
Code (US##)
Purchasing
Org. (US ##)
Purchasing
Group (N##)
Work center
(ASSY/INSP/PAC
K/MANT/SERV)
Cost centers
Plants
(DL##/MI##/SD##)
FG## SF##
Sales
Org. (UW##/UE##)
RM## MI##
TG##
Shipping Point (DL##/MI##/SD##)
Distribution
Channel (IN/WH)
Division
(BI/AS)
Sales Area
Company configuration
◦ Global Bike Company (GBI) Inc. (US##)
 Dallas TX, US
◦ Facilities:
 One manufacturing plant at Dallas (plant, DL##)
◦ Work Centers (ASSY10##/INSP10##/PACK10##)
◦ Storage Locations
 FG## - Finished products
 SF## - Semi-finished products
 RM## - Raw materials
 MI## - Misc. materials
◦ Shipping point (DL##)
 Two Distribution centers (Plants, MI##/SD##)
◦ Sales Organizations (UE##/UW##)
◦ Purchase Organization (US##)
Company configuration
Cost
Center Standard Hierarchy (NA##)
 NA10##
(Cost center group for Company headquarter)
• N11## (Cost center group for Executive board)
• N12## (Cost center group for Internal service)
 NA20## (Cost center group for Admin. and financials)
 NA30## (Cost center group for Marketing)
 NA40## (Cost center group for Operations)
• N41## (Cost center group for R&D)
• N42## (Cost center group for Production)
• N43## (Cost center group for Plant maintenance)
• N44## (Cost center group for Quality)
• N45## (Cost center group for Service)
 NA50## (Cost center group for IT)
GBI Inc. :
Products: Finished Materials
Your Material
Number
DXTR30##
Material Description
(Short Text)
## Deluxe Touring Bike
(black)
## Deluxe Touring Bike
(Silver)
## Deluxe Touring Bike
(red)
ORMN10##
## Men's Off Road Bike
DXTR10##
DXTR20##
Standard Price Sales Price
(Cost)
(WH/IN)
$1,400
$2,800
$1,400
$2,800
$1,400
$2,800
$1,200
$2,400
GBI Inc. :
Products:
Your Material
Number
Trading materials
Material
Description
Moving Ave. Price
(Cost)
Sales Price
(WH/IN)
EPAD10##
## Elbow Pads
$ 37.50
$ 70
KPAD10##
$ 37.50
$ 70
OHMT10##
## Knee Pads
## Off Road
Helmet
$ 25.00
$ 50
RHMT10##
## Road Helmet
$ 25.00
$ 50
RKIT10##
## Repair Kit
$ 16.00
$ 32
GBI Inc.: Key Processes
◦
◦
◦
◦
◦
◦
◦
◦
◦
◦
Procurement (buy)
Fulfillment (sell)
Production (make)
Material planning (plan)
Financial Accounting (track)
Management Accounting (track)
Inventory and Warehouse Management (store)
Enterprise Asset Management (maintain)
Customer Service (service)
HCM (people)
GBI Inc. : The company
Information
system requirement
IS of the GBI, Inc. will
◦ integrate and share all services for all business
functions in the Dallas Office
◦ Centralize all ERP functions
◦ Achieve the primary business objectives:
 Reduce Costs
 Deliver Best-in-Class Technology to all divisions
SAP GBI Client, Userid, Password
SAP Exercises for Lab 1 to Lab 11:
Description: PRAGUE GBI SCC Spring 2015
Application server: prague.cob.csuchico.edu
Instance number: 23
System ID: PRA
Client: 320
Userid: gbi-101 to bpi-130
Initial password: SAP4US
SAPGUI Setup for IDES
Name
Chintalapati,Sashidhar
Dehni MD,Bashar Radwan
Figueroa,Erick Jesus
Gutierrez,Maria Milagros
Nukala,Savitha
Ramirez,Jorge
Vargas Camargo,Ricardo Antonio
Zhan,Ruan
Gu,Xingshuo
He,Linman
Hu,Bing
Huang,Jie
Li,Xue
Song,Yiyang
Tan,Xiao
Wu,Yue
Xu,Huibingjue
Xu,Yali
Yang,Yuping
Zhang,Bofan
Zhang,Yu
SAP ID
gbi-101
gbi-102
gbi-103
gbi-104
gbi-105
gbi-106
gbi-107
gbi-108
gbi-109
gbi-110
gbi-111
gbi-112
gbi-113
gbi-114
gbi-115
gbi-116
gbi-117
gbi-118
gbi-119
gbi-120
gbi-121
Password
SAP4US
SAP4US
SAP4US
SAP4US
SAP4US
SAP4US
SAP4US
SAP4US
SAP4US
SAP4US
SAP4US
SAP4US
SAP4US
SAP4US
SAP4US
SAP4US
SAP4US
SAP4US
SAP4US
SAP4US
SAP4US
Exercises: due date –2/2/2015
1. Define company code
2. Define business area
3. Define empty chart of accounts
4. Maintain controlling area
5. Define credit control area
6. Define variants for open posting period
7. Define field status variants
8. Enter global parameters
9. Assign company code to controlling area
10.Assign controlling area to op. concern
11.Define standard hierarchy
12.Assign company code to permitted credit control area
13.Maintain company code for materials
14. Define plants
15. Maintain storage locations
16. Assign plants to company code