is 466 Advanced topics in information Systems Lecturer : Nouf Almujally 21 – 9 – 2011
IS 466 ADVANCED TOPICS IN INFORMATION SYSTEMS LECTURER : NOUF ALMUJALLY 5 – 10 – 2011 College Of...
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Transcript of IS 466 ADVANCED TOPICS IN INFORMATION SYSTEMS LECTURER : NOUF ALMUJALLY 5 – 10 – 2011 College Of...
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IS 466 ADVANCED TOPICS IN INFORMATION SYSTEMS
LECTURER : NOUF ALMUJALLY
5 – 10 – 2011
College Of Computer Science and Information, Information Systems Department
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Lessons Learnt from Lecture4
• Instance? • each install of the SAP R/3 software on an
individual application server
How To web‑enable the SAP Applications?
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Objectives
Business Process Integration Organisational Data Master Data Rules Transaction Data
Organizational Elements of FI Organizational Elements of CO Organizational Elements of SD Organizational Elements of MM Material Management Module
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Business Process Integration
FI
MM
SD
Org
Data
Ru
les
FI
MM
SD
M
aste
r Data
FI
MM
SD
FI SDMM
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Business Process Integration
• “The Stool” : a metaphor for the SAP structure
• There are four basic components needed to run execute SAP:1. Organizational Data2. Master Data3. Rules
4. Transactions
• The Legs which ‘hold up’ the transactions• Transactions cannot be run unless these are setup.• The legs are typically configured during the implementation process.
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Organizational Data
• A hierarchy in which the organizational units in an enterprise are arranged according to tasks and functions.
• Are static data and are rarely changed
• The definition of organization units is a fundamental step, it is a critical factor in how the company will be structured
• Data that is defined when the system is installed
• An example is the table with country codes.
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Master Data
• Master data is relatively fixed• Before making the master data configurations, you
must have completely defined the organizational structures
• Master data is created centrally and shared among applications and business processes.
• Ex.• Material master data
contains all information about the materials a company procures, manufactures, stores and ships
• Purchasing information recordcontains information on a specific material and a vendor supplying this material
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Master Data (Con.)
• Vendor master data
contains information about the vendors that supply an enterprise. It contains data such as:• the vendor’s name and address• The currency used for ordering from the vendor• Names of important contact persons (sales staff)
• General Ledger master data It serves as a complete record of all business transactions of a company.
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Rules
• Defines the parameters for Master Data and Transactions
• Determines functionality for Master Data and Transactions
• Relatively fixed• Changes as policy changes
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Transaction Data
• Data resulting from executing business process steps.
• Unlike master data, transactional data is dynamic – each transaction is unique
• An example of transaction data is: • The goods in a warehouse which change after each
purchase order • The company is selling some materials to one of the
customer. So they will prepare a sales order for the customer. When they will generate a sales order means they are doing some sales transactions. Those transactional data will be stored in Transactional table.
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Con.
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SAP Organizational Elements
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Definition
• Definition of Organizational Elements:• In the SAP R/3 System, organizational elements
form structures that represent the legal and organizational views of a company. These views include: accounting, manufacturing planning and execution, materials management, and sales and distribution.
• In summary, the organizational elements and
their structures form the framework in which all business transactions are processed.
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Client
CompanyCode
Plant
StorageLocations
SalesOrganization
Division
SAP
EnterpriseEnterprise
WarehousesWarehouses
DivisionDivision
CompanyCompany SubsidiarySubsidiary
SalesOrganization
SalesOrganization
FactoryFactory
Mapping our organization to SAP Organizational data
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Material Management Organizational Structure
StorageLocation
Plant
PurchasingOrganization
Company
Client 401
USA Germany
N. America Europe
New York California
Receiving Warehouse
Hamburg
Receiving Warehouse
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Key Organizational Elements
Client: • self-contained unit in SAP system with separate
master records and complete set of database tables.
• Root of the organizational hierarchy. Highest organizational element.
• The Client represents the enterprise/headquarters group.
• All related companies contained in the same client.
• Generally one client per SAP production instance. • Master data is created at the client level.
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Financial Accounting View (FI)
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Key Organizational Elements - FI
Company Code:• a distinct legal entity contained within an ERP
system. • “Distinct legal entity” - reports its operations
independently.• Accounts are managed by company code. • Business transactions are carried out at the
company code level. • Client may contain 1 or more company codes. • A company code can be in only 1 client.
Business Area: • Internal organizational unit used to create balance
sheets and profit and loss statements below the company code level (optional)
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Controlling View (CO)
FI
Company Code
CO
Controlling Area
FI
Business Area
CO
Cost Center Profit Center
CO
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Key Organizational Elements - CO
Controlling Area: • Independent organizational structure for which
costs and revenues are collected• can have many company codes assigned to it
Profit Center:• a unit that collects revenue usually product lines
(cost centers are assigned to profit centers)
Cost Center:• a unit that collects commonly related costs
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Sales and Distribution View (SD)
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Key Organizational Elements - SD
• Sales Organization: central organizational element controlling terms of sale to customer.
• Distribution Channel: mechanism through which goods and/or services reach the customer. Ex. wholesale, retail and direct sales.
• Division: logical groupings of related products. • Sales Area: a unique combination of a sales
organization, distribution channel, and division.
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Materials Management View (MM)
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Key Organizational Elements - MM
• Plant: location where goods or services are produced, maintained, or distributed. • Each plant belongs to only 1 company code. • A company code may have multiple plants.
• Storage location: place within a plant where goods are stored. • Each plant must have at least one storage location. • Each storage location belongs to only 1 plant.
• Purchasing Organization: part of organization responsible for procuring materials and services. • Negotiates purchases, sets pricing conditions, engages
in strategic purchase planning, sets contracts.
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Material Management Conditions
• Purchase Organization • PO linked to one, many or no CC• PO has to be linked to one or many plants
• Plant• PL has to be assigned to a CC• PL can have one to many Storage locations
• Storage Location• Many SL to one PL
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Material Management Module
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Materials Management Module
• The Materials Management (MM) module is fully integrated with the other modules of the SAP System.
• It supports all the phases of materials management: materials planning and control Purchasing goods receiving inventory management and invoice verification.
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Components of Materials Management
MaterialsManagement
(MM)
LogisticsInvoice
Verification
MaterialMaster
PhysicalInventory
Valuation
MRP
ServiceEntrySheet
ServiceMaster
ProductCatalog
Purchasing
InventoryMgmt.
ForeignTrade/
Customs
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Procurement Process (Procure-to-Pay)
Purchase Requisition
Paymentto Vendor
Notify Vendor
VendorShipment
InvoiceReceipt
GoodsReceipt
Purchase
Order
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Procurement Process
• This is a standard view of the procure to pay process and the most common.
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Procurement Process
1. Starts with a requisition that needs to be filled. 2. The purchase order is the document to fill the need:
usually includes the vendor, cost/price, quantity, terms and other pertinent information. [ part one of the 3-way match]
3. Notifying the vendor4. The goods are shipped and brought to the organization5. The goods are received and then put away [ part two
of the three way match]6. An invoice is received from the vendor [third part of
the 3-way match]7. After the tolerances/verification of the 3-way match
are met a payment is made according to the terms agreed to on the purchase order.
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3-Way Match for Payment
PurchaseOrder
GoodsReceipt
InvoiceReceipt
Debit Credit
PaymentProgram
Verification
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Outcomes of the Procurement Process33
1. Purchase Requisition2. Purchase Order3. Goods receipt4. Invoice Receipt5. Pay the Vendor
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1- Purchase Requisitions
• Internal document• Requesting a certain quantity of material
or service on a certain date• Can be created:
• Manually• Automatically (Materials Requirements
Planning (MRP), sales orders, etc.)
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Purchase Requisition (con.)
What are types of information required?
• Materials• Quantities• Delivery dates• Plants• Purchasing groups, etc.
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2 -Purchase Orders
• Purchase Orders are:• A formal request to a vendor to provide materials or
services• An internal planning and tracking tool.
The process:1. Request for Quotations
• The business sends out RFQ to the vendors and the vendors respond back with Quotations with prices.
2. quotation evaluation3. Purchase Order
• Printed, fax, sent, etc. to a vendor
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Purchase Order (con.)
What are types of information required?
•Vendor•Material and/or service•Quantity and price•Delivery dates•Terms of payment
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3- Goods Receipt
• Goods receipt with reference to a purchase order• Copy data from purchase order• Delivery notification• Invoice verification• Updates purchase order history• Inventory update• Automatic update of General Ledger (G/L)
accounts
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Goods Receipt (con.)
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4 -Invoice Receipt40
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Invoice Verification
• Matches the vendor’s invoice to the purchase order and the goods receipt (3-way match)
• Matches price and quantity• Updates the purchase order and its history• Updates accounting information
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5- Pay the Vendor
• Selects invoices for payment based on the payment terms in the vendor master or purchase order
• Generates payment for released invoices
• Updates accounting information
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Pay the Vendor (con.)
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Questions ??
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What should you do this week ?• Review the lectures.• Do the Tutorial and submit it online:
Due date: Friday.• Read The assignment to discuss it during
the tutorial.• Consult Lecturer if any questions related to
the subject.
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