SAP University Alliances
Version
2.2
Authors Simha R. Magal
Stefan Weidner
Tom Wilder
Introduction to Configuration
Product
SAP ERP 6.0 EhP4
Global Bike Inc.
Level
Beginner
Focus
Introduction to Configuration
© SAP AG
Configuration Agenda
 The GBI 2.x Environment
- Development
- The company / case
- Processes configured
 Configuration Fundamentals
- What is configuration?
- Data in an enterprise systems
- The document concept
 Teaching Environment
- Single company code (SCC)
- Multi company code (MCC)
- Teaching Materials
© SAP AG
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Configuration Development
 Project Sponsor: SAP University Alliances
 Project Team
- Simha R. Magal, Ph.D., Seidman College of Business, Grand Valley
State U.
- Stefan Weidner, Otto von Guericke University, Magdeburg, Germany
- Jeffrey Word, Ph.D., SAP
 Supported by Interns
- Grand Valley State University ERP Program, Michigan, USA
- Otto von Guericke University, Magdeburg, Germany
 Funding
- West Michigan CIO council
- John Wiley and Sons
© SAP AG
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Configuration The Global Bike Inc. (GBI) Story
 Two bike enthusiasts join forces
 A mountain biker from the US
 A Road Racer from Germany
© SAP AG
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Configuration The Company – Background
 Background:
- Global concern using full ERP capabilities
- Consists of two companies located in the US and in Germany
 History:
-
© SAP AG
John Davis won numerous mountain bike championships in the US
In 1990, started his own mountain bike company (Frankenstein Bikes)
Peter Schwarz grew up on road bikes in the Black Forest, Germany
As a student, he engineered ultra-light composite frames
In 1993, started his own bike frame company (Heidelberg Composites)
Both met in 2000
In 2001, merged to form Global Bike Inc.
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Configuration The Company - Strategy
 John and Peter are Co-CEOs
 John is responsible for (in terms of reporting)
- Sales, Marketing, Service and Support, IT, Finance, and Human
Resources
- John sells products and brings in money
 Peter is responsible for
- Research, Design, Procurement, and Manufacturing Groups
- Peter builds products and spends money
 World class bicycle company serving both the professional and
“prosumer” in touring and off-road racing.
 Focus on:
- Quality
- Toughness
- Performance
© SAP AG
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Configuration The Company – Org. Structure
Enterprise
Companies
Facilities
© SAP AG
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Configuration The Company – Materials

Finished Goods (FG)
GBI

Trading Goods (TG)

Product Groups (PG)
BIKE
Bicycles
TOUR
Touring
DXTR
Deluxe touring
bike
ACCR
Accessories
ORBK
Off Road
PRTR
Professional
touring bike
DXTR 1000
Black
PRTR 1000
Black
DXTR 2000
Silver
PRTR 2000
Silver
DXTR 3000
Red
PRTR 3000
Red
ORMN 1000
Men’s
standard
ORWM 1000
Women’s
standard
PROT
Protective
PADS
Pads
UTIL
Utilities
HLMT
Helmets
SHRT 1000
T-shirt
EPAD 1000
Elbow pads
OHMT 1000
Of f road
helmet
RKIT 1000
Repair kit
KPAD 1000
Knee pads
RHMT 1000
Road helmets
PUMP 1000
Air pump
CAGE 1000
Water bottle
cage
BOTL 1000
Water bottle
FAID 1000
First aid kit
© SAP AG
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Configuration The Company – Materials
 Trading Goods
© SAP AG
 Raw Materials
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Configuration The Company – Materials
 Semi-Finished Goods
© SAP AG
 Finished Goods
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Configuration The Company – Business Partners
 Customers - US
 Customers - Germany
Addresses are
SAP offices!
© SAP AG
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Configuration The Company – Vendors
 Vendors – US
 Vendors – Germany
Addresses are
SAP offices!
© SAP AG
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Configuration Processes Configured
 GBI is a process centric organization
•
Procurement (buy)
•
Fulfillment (sell)
•
Production (make)
•
Inventory and Warehouse Management (store)
•
Material Planning (plan)
•
Enterprise Asset Management (maintain)
•
Customer Service (service)
•
HCM (people)
•
Financial Accounting (track)
•
Management Accounting (track)
•
Program and Project Management (projects)
© SAP AG
“Mile wide and inch deep”
SAP ERP / TERP 10
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Configuration Processes Configured
Processes are
all integrated
© SAP AG
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Configuration Agenda
  The GBI 2.x Environment
- Development
- The company / case
- Processes configured
 Configuration Fundamentals
- What is configuration?
- Data in an enterprise systems
- The document concept
 Teaching Environment
- Single company code (SCC)
- Multi company code (MCC)
- Teaching Materials
© SAP AG
Page 15
Configuration Configuration vs. Process Execution
 Configuration:
-
Getting the system ready to execute processes
Setting up the enterprise structure
Defining business rules
Populating the system with needed master data
Testing
 Process execution:
- In a previously configured system
- Process steps are executed utilizing the capabilities of the ERP
system
© SAP AG
Page 16
Configuration Configuration vs. Customizing
 Configuration:
- The process of tailoring SAP ERP by selecting specific functionality
available
- Requires no programming; “set the switches”
 Customizing:
-
© SAP AG
Making changes to the underlying code in the software
Requires knowledge of ABAP programming
Used to create or extend capabilities not available in the system
Use with caution
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Configuration
Why Teach Configuration?
 Configuration provides a greater understanding of how business
processes are executed in the system
 Knowledge of configuration helps to demystify the software
 Knowledge of configuration is helpful in in trouble shooting
© SAP AG
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Configuration Data in an ERP System
 Organizational data (levels, elements)
 Master data
 Transaction data
- Associated with process steps
© SAP AG
Page 19
Configuration Organizational Data
 Defines the structure of the enterprise in terms of legal or business
purposes.
- Hierarchy of the organization
- Data rarely change
- Examples:
•
•
•
•
•
© SAP AG
Legal entities
Plants
Storage areas
Sales organizations
Profit centers
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Configuration Organizational Data
 Client
- Represents the enterprise; comprised of many companies
 Company Code
- Central organizational element in financial accounting
- Identifies legal entities in an enterprise
- Books are maintained at this level for legal reporting
 Plant
- Performs multiple functions
- Used by many processes
- Represents an area where work is performed: factory, warehouse,
office, distribution center, etc.
© SAP AG
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Configuration Organizational Data
Enterprise
Client
Companies
Company Code
Facilities
Plant
© SAP AG
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Configuration Master Data
 Long-term data that typically represent entities associated with
various processes.
- Material, Customer, Vendor
 Typically grouped into segments associated with organizational
level
- General data (across company codes)
- Financial data (CC specific)
- Area-specific data (Sales, Purchasing, Production)
 Enterprise structure must be configured before adding master data
© SAP AG
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Configuration Business Rules
 Defines how business processes are executed
- How transactions (process steps) are executed
- Based on policies of the organization
• A PO over $10,000 needs approval
• Payment for an order must be received prior to shipment
 Some business rules are included in master data
- Terms, pricing, communication methods
- Planning methods, lot sizing, availability check
© SAP AG
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Configuration Transaction Data
 Data generated during execution of process steps
 Requires
- Organizational data
- Master data
- Situational data
 Example: Sales order creation
- Organizational elements: Client, Company Code, Sales Area
- Master Data: Customer, Material
- Situational data: Who, What, When, Where
• date, time, location, person, quantity
© SAP AG
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Configuration Documents
 Electronic record of transactions
- Transaction documents
• Requisition, purchase order, invoice, delivery document, etc.
- FI documents
• Record the impact on financial accounting
- CO documents
• Record the impact on management accounting
- Material documents
• Record the impact on material status (value, location)
© SAP AG
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Configuration Agenda
  The GBI 2.x Environment
- Development
- The company / case
- Processes configured
  Configuration Fundamentals
- What is configuration?
- Data in an enterprise systems
- The document concept
 Teaching Environment
- Single company code (SCC)
- Multi company code (MCC)
- Teaching Materials
© SAP AG
Page 27
Configuration Enterprise Structure
Enterprise
Client
Companies
Company Code
Facilities
Plant
© SAP AG
Page 28
Configuration Enterprise Structure
Client
Common
Company
Code
Plant
US00
DL00
MI00
US01
SD00
DL01
MI01
US##
SD01
DL##
MI##
Other
Elements
Single Company Code (SCC)
Multi Company Code (MCC)

1000 copies of all master
data exist in SCC

Only the 000 instance of
master data exist in MCC

Common general ledger

Unique general ledger
© SAP AG
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SD##
Configuration Materials: Finished Goods
GBI
Naming convention
AAAA N###
To support 1000
users
BIKE
Bicycles
TOUR
Touring
DXTR
Deluxe touring
bike
ACCR
Accessories
ORBK
Off Road
PRTR
Professional
touring bike
DXTR 1000
Black
PRTR 1000
Black
DXTR 2000
Silver
PRTR 2000
Silver
DXTR 3000
Red
PRTR 3000
Red
ORMN 1000
Men’s
standard
ORWM 1000
Women’s
standard
PROT
Protective
PADS
Pads
HLMT
Helmets
SHRT 1000
T-shirt
EPAD 1000
Elbow pads
OHMT 1000
Of f road
helmet
RKIT 1000
Repair kit
KPAD 1000
Knee pads
RHMT 1000
Road helmets
PUMP 1000
Air pump

1000 copies of all master data exist in SCC

Only the 000 instance of master data exist in MCC
© SAP AG
UTIL
Utilities
CAGE 1000
Water bottle
cage
BOTL 1000
Water bottle
FAID 1000
First aid kit
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Configuration Materials: Finished Goods
Numbering
AAAAN###

1000 copies of all master data exist in SCC

Only the 000 instance of master data exist in MCC
© SAP AG
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Configuration Materials: Trading Goods
Numbering
AAAAN###

1000 copies of all master data exist in SCC

Only the 000 instance of master data exist in MCC
© SAP AG
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Configuration Customers: US
Numbering
NN[N]###

1000 copies of all master data exist in SCC

Only the 000 instance of master data exist in MCC
© SAP AG
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Configuration Vendors: US
Numbering
NN[N]###

1000 copies of all master data exist in SCC

Only the 000 instance of master data exist in MCC
© SAP AG
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Configuration Process Execution Courses
Single Company Code (SCC)
Multi company Code (MCC)
 Infrastructure
 Infrastructure
- One company code: US00
- Common general ledger
- Unique master data: ###
(1000 copies)
 Exercises
-
© SAP AG
Student identifier: ###
Master Data: Review
Processes: Execute
Financial impact: Limited
understanding
- 99 company codes (01 – 99):
US##
- Unique general ledger
- Unique master data” 000 ->
0##
 Exercises
- Student identifier: ##
- Master data: Review and
Create
- Processes: Execute
- Financial impact: More
complete understanding
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Configuration Configuration Courses
 Single Company Code (SCC)
- 00 enterprise structure already exists
• Some configuration already completed
- Exercises
•
•
•
•
•
© SAP AG
Student identifier: ##
Configure / create enterprise structure (##)
Configure business rules
Create master data
Test
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Configuration Teaching Materials
 Core processes
-
Phase I: Financial Accounting
Phase II: Procurement
Phase III: Fulfillment
Phase IV: Production
Phase V: Material Planning
Phase VI: Warehouse Management
 Extended Processes
-
© SAP AG
Management Accounting
Enterprise Asset Management
Customer Service
Human Capital Management
Etc.
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Configuration Teaching Materials
 Each phase is divided into
-
Enterprise Structure
Rules and Parameters
Master Data
Process Execution (Testing)
 Instructor materials
- Includes screenshots
 Planned
- Embedded questions
- Common problems and solutions
- Projects
© SAP AG
Page 38
Configuration Agenda
  The GBI 2.x Environment
- Development
- The company / case
- Processes configured
  Configuration Fundamentals
- What is configuration?
- Data in an enterprise systems
- The document concept
  Teaching Environment
- Single company code (SCC)
- Multi company code (MCC)
- Teaching Materials
© SAP AG
Page 39