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SAP- ERP

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What is ERP?What is ERP?

An Enterprise Resource Planning system is a

packaged business software system that allows a

company to:

Automate and integrate the majority of its

business processes

Share common data and practices across

the entire enterprise Produce and access information in a real-

time environment

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What is

S A P

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What is S A P

S A P

Stands forSystems Applications and

Products

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About SAPAbout SAPSA

P

ystems,

pplications,

roducts...

Founded inFounded in

Walldorf,Walldorf,

Germany in 1972Germany in 1972

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4th largest independent software supplier inthe world

Largest ERP vendor

More than 2,500,000 users in over 50 countries

Over 21,000 R/3 installations worldwide

An average of 25% of revenue invested in R&D

High customer and employee satisfaction

World Leader in enterprise business software

solutions

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Why SAP is UniqueWhy SAP is Unique

Highly integratedComprehensive functionality

Complex data structures

Availability of dataSingle point of entry

On-line data capture and real-time update

Requires strong application knowledge

Causes personnel and organizationalstructure changes

Causes business process changes

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SAP Business PartnersSAP Business PartnersBusinessDevelopmentPartners

Logo andImplementation

Partners

TechnologyPartners

PlatformPartners

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Support & ServicesSupport & Services

User GroupsUser Groups

CompetenceCompetenceCentersCenters

SAP EmployeesSAP Employeesover 18,330over 18,330

worldwideworldwide

HotlineHotline( 24 hours a day( 24 hours a day7 days a week )7 days a week )

OSSOSSOnlineOnlineServiceServiceSystemSystem

RemoteRemoteSupportSupport

CCMSCCMSComputing CenterComputing Center

Management SystemManagement System

Early WatchEarly Watch

Logo/Implementation PartnersLogo/Implementation Partnersover 10,000 consultantsover 10,000 consultantstrained in SAP worldwidetrained in SAP worldwide

TrainingTrainingover 400 differentover 400 different

SAP training coursesSAP training courses

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SAP

01 Raw Materials, Mining

Agriculture02 Oil and Gas

03 Chemical

04 Pharmaceutical

05 Building Materials, Clay, Glass

06 Building and Heavy Construction07 Primary Metal, Metal Products,

Steel

08 Industrial and CommercialMachinery

09 Automotive

10 Ship, Aerospace & TrainConstruction

11 Transportation Services,Tourism

12 Electronic/Optic Equip.,Common Devices

13 Wood and Paper14 Furniture

15 Consumer Packaged Goods - Food

16 Consumer Packaged Goods -Non-Food

17 Clothing and Textiles

18 Retail and Wholesale

19 Communication Services, Media

20 Storage, Distribution, Shipping21 Utilities

22 Financial Services, Banks andInsurance

23 Government, Public Admin.and Services

24 Museums and Associations25 Healthcare and Hospitals

26 Educational Institutions, Unis,Research

27 Consulting, Software

28 Services

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SAP - The ProductSAP - The Product

Original product was SAP R/2 on themainframe introduced in 1972

SAP R/3 introduced for smaller platforms in1992

Developed using a fourth generationproprietary language developed by SAPcalled ABAP/4

Major SAP versions:2.2h

3.0d, 3.0e, 3.0f , 3.1g, 3.1h, 3,1i

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SAP - Enterprise System

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SAP - Client/ServerEnvironment

Client

Software/hardware combination that can make a request for services

from a

central repository of resources

Server

Software/hardware combination that can provide services to a group of

clients in

a controlled environment

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SAP - Three-Tier SAPStructure

GUI Graphical User Interface or Web Interface

Application server (one or many)

Database server (one single location)

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SAP ComponentsSAP ComponentsSAP R/3 is comprised of modules categorized in three

core functional areas: Financial

Human Resources

Logistics

Special software packages on top of R/3, targeted tospecialized vertical industries:

Industry Solutions (IS)

Special set of modules positioned between thetechnical and functional areas of the system:

Cross Application (CA) ModulesWorkflow (WF)

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Financial AccountingFinancial Accounting

q General LedgerGeneral Ledger

q Accounts ReceivableAccounts Receivable

q

Accounts PayableAccounts Payableq Tax and Financial ReportsTax and Financial Reports

q Special Purpose LedgerSpecial Purpose Ledger

q

Legal ConsolidationsLegal Consolidations

FIFI

Financial Applications. . . . . .. .

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ControllingControlling

q Cost Center AccountingCost Center Accounting

q Profit Center AccountingProfit Center Accounting

q Product Cost ControllingProduct Cost Controlling

q Profitability AnalysisProfitability Analysis

q Activity Cost ManagementActivity Cost Management

q Internal OrdersInternal Orders

COCO

Financial Applications. . . . . .. .

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ManagementManagement

q DepreciationDepreciation

q Property ValuesProperty Values

q Insurance PoliciesInsurance Policies

q Capital InvestmentCapital Investment

GrantsGrants

AMAM

Financial Applications. . . . . .. .

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Project SystemProject System

q Project TrackingProject Tracking

q Work Breakdown StructureWork Breakdown Structure

q Budget ManagementBudget Management

q Cost and Revenue PlanningCost and Revenue Planning

q Networks and ResourcesNetworks and Resources

PSPS

Financial Applications. . . . . .. .

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Sales and DistributionSales and Distribution

q Computer Aided SalesComputer Aided Sales

q QuotationsQuotations

q

Sales Order ManagementSales Order Managementq PricingPricing

q DeliveryDelivery

q

InvoicingInvoicing

SDSD

Logistics Applications . . . . . . . .

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Materials ManagementMaterials Management

q ProcurementProcurement

q Inventory ManagementInventory Management

q Vendor EvaluationVendor Evaluation

q Invoice VerificationInvoice Verification

q Warehouse ManagementWarehouse Management

MMMM

Logistics Applications . . . . . . . .

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Production PlanningProduction Planning

q Sales & OperationsSales & OperationsPlanningPlanning

q Demand ManagementDemand Management

q Material RequirementsMaterial RequirementsPlanningPlanning

q Production Activity ControlProduction Activity Control

q

Capacity PlanningCapacity Planning

PPPP

Logistics Applications . . . . . . . .

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Quality ManagementQuality Management

q Quality CertificatesQuality Certificates

q Inspection ProcessingInspection Processing

q

Planning ToolsPlanning Toolsq Quality ControlQuality Control

q Quality NotificationsQuality Notifications

QMQM

Logistics Applications . . . . . . . .

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Plant MaintenancePlant Maintenanceq Plant MaintenancePlant Maintenance

q Equipment and TechnicalEquipment and Technical

ObjectsObjects

q Preventive MaintenancePreventive Maintenance

q Service ManagementService Management

q Maintenance OrderMaintenance Order

ManagementManagement

PMPM

Logistics Applications . . . . . . . .

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Human ResourcesHuman Resources

q Personnel AdministrationPersonnel Administration

q Payroll, BenefitsPayroll, Benefits

q

Time ManagementTime Management

q Planning and DevelopmentPlanning and Development

q Organization ManagementOrganization ManagementHRHR

Human Resources. . . . . . . .Human Resources. . . . . . . .

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Industry SolutionsIndustry Solutions

q BanksBanksq HospitalsHospitals

q Oil CompaniesOil Companies

q Publishing SectorPublishing Sector

q TelecommunicationsTelecommunications

q RetailRetail

q UtilitiesUtilities

q

OthersOthers

ISIS

Industry Solutions. . . . . . . .Industry Solutions. . . . . . . .

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Audit CyclesAudit CyclesRevenue

Expenditure

Inventory Management

Fixed Assets

Treasury

Payroll/Personnel

Business ProcessesOr: audits specified by your organization

e.g. Cross functional, Operational

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Management ChallengesManagement Challenges

SAP Modules

Three Main Functional Categories

Multitude of Modules

Multitude of Sub-Modules

SAP Business Processes

1000+ Processes

Many Audit cycles

Auditors will determine how all these components

interrelate in order to audit effectively

Management should have continuous monitoring

processes in place

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Business/SAP/AuditBusiness/SAP/Audit

Process ViewsProcess Views

AuditAudit

CyclesCycles

SAP ModulesSAP Modules

BusinessBusiness

ProcessesProcessesApplication Level -Application Level -

Client EnvironmentClient Environment

Model Level -Model Level -

SAPSAP

Process ModelProcess Model

OrganizationsOrganizations

Audit - Audit -

BusinessBusiness

CyclesCycles

ImplementatiImplementati

on Level -on Level -

SAP SoftwareSAP Software

ModelModel

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e a ons p o u oe a ons p o u oSAPSAP

SAP Module Functional Categories, Modules andComponents

Business Cycles Audits and SAP Modules

SAPSAP

ComponentsComponents

AuditAudit SAP ProcessesSAP Processes

SAPSAP

ModulesModules

AccountAccount

BalancesBalances

(Financial(Financial

Accounting)Accounting)

(A/R)(A/R)

(Revenue)(Revenue)

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Li ki A dit C l tLinking A dit C cles to

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Linking Audit Cycles toLinking Audit Cycles to

SAP ModulesSAP Modules

Expenditure

Fixed Assets

Inventory

ManagementPayroll andPersonnel

Revenue

Treasury Financial Applications

Logistics Applications

Human Resources

Cross Applications

Industry Solutions

Audit Business Cycles

Basis Component

SAP Module Functional Category

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