SAP Overview456[1]

Business Consulting Services

SAP Overview

05th Sep’2005

PlantRC01

Purchasing

Org.STPO

Client

Purchasing

GroupSGP

Company

GIL

Distribution

Channel

Sales Office

Shipping

Point

Sales Org.

CreditControl

Area

Business

Area

Chart ofAccounts

LoadingPoint

Sales Group

Division

StorageLocatio

nMAIN

Control

Area

Sales Area*

Material (Purch. Org. connects via plant)

SAP Organizational Structures - Overview

PurchasingArea

SalesOrganization

DistributionChannel

Division

SALES & DISTRIBUTION

FINANCIAL

ClientBus. Area

2000

Bus. Area1000

CompanyGS

CompanyVC

CompanyRC

Bus. Area3000

MATERIALS MANAGEMENT

Company Code

Sto.Loc.MAINPlant

RC00 Sto. Loc.HIRA

PlantRC01

Sto. Loc.HIRB

PlantRC02

Company CodeRC

1000 2000 3000

10 10 1010

01 0101 020102 01

SAP Hierarchy Structure

Introduction to SAP Modules

• MM – Materials Management• PP – Production Planning • QM – Quality Management• PM – Plant Maintenance• FI – Financial Accounting• CO – Controlling

Overview of the MM Module

Plant

Storage Location

Purchasing Organisation

Materials Management Organisation Units

CompanyCodeRC

PlantRC01

StorageLocation- MAIN

StorageLocation- HIRA

PlantRC02

StorageLocation- MAIN

Inventory ManagementInventory Management

Inventory Management

CompanyCodeVC

Plant RC00Plant RC00 Plant RC01Plant RC01 Plant VC00Plant VC00 Plant VC01Plant VC01

PurchasingPurchasingOrganisatioOrganisatio

nnVCVC


nn00010001


nnRCRC

Purchasing Organisation Structure

CompanyCompanyCodeCodeRCRC

External LogisticsExternal LogisticsInternal Logistics (MRP/Production)Internal Logistics (MRP/Production)

PurchasingOrgRC

PlantVC00

Plant VC01

PurchasingOrgVC

Plant RC01

CompanyCodeRC

CompanyCodeVC

Plant VC02

Client 010Client 010

Purchasing(Purchasing Organisations Assigned to Company Codes)

External LogisticsExternal LogisticsInternal Logistics (MRP/Production)Internal Logistics (MRP/Production)

CompanyCodeRC

CompanyCodeVC

Plant VC00

Plant VC01

PurchasingOrganisation

GIL

Plant RC00

Client GILClient GIL

Central Purchasing Organisation(Purchasing Organisation Not Assigned to Company Code)

Supply Chain Management: The delivery of enhanced customer and economic valuethrough management of the flow of physical goods andassociated information.

Information Information FlowFlow

DemandDemand

Product FlowProduct Flow

SupplierSupplier PurchasingPurchasing ProductionProduction DistributionDistribution RetailingRetailing CustomerCustomer

FinancialFinancialControlControl

HumanHumanResourcesResources

MM Overview - The Integrated Supply Chain


WarehouseManagement

Accounting

Requirement

Production(Internal Procurement)

Material RequirementsMaterial RequirementsPlanningPlanning

GoodsIssue

TransferPosting

Purchasing(External Procurement)

Goods Receipt

Sales and Distribution

InvoiceVerification

Invoice

DemandDemandStocksStocksForecastForecast

MM Overview: Procurement Cycle

Goods / ServiceReceipt

POCreated

InvoiceVerification Requirement

SourceDetermined

VendorSelected

PurchaseHistory

Invoice

PO

Delivery

MRPMRP

RFQRFQ

ContractContract

Payment

Source ListQuota ArrangementOutline AgreementInfo Record

External Procurement

Quote B

Quote A

VendorB

VendorA

PurchaseOrder

SchedulingAgreement

RFQRFQ

Purchase Requisition

Contract

Purchasing Documents

Stock Material withMaterial Master

Record

Update @ GR Time to STOCK ACCOUNT

Receive into Stock

Consumable Material with or withoutMaterial Master

Record

?? ACCOUNT

ASSIGNMENT ???? ACCOUNT

ASSIGNMENT ??

Enter Account Assignment Category

Automatic Account Assignment from

Material Master Data

Manual AccountAssignment - User

Must Enter Account Data

Update @ GR Time to CONSUMPTION or

ASSET ACCOUNT

Receive as Asset or Consume

Account Assignment Category

Release ConditionsRelease Conditions

ValueValueMaterial GroupMaterial GroupPlantPlant

Does a Strategy Apply?

Release IndicatorRelease Indicator

Released/Blocked for OrderingReleased/Blocked for OrderingReleased/Blocked for RFQReleased/Blocked for RFQFixed for MRPFixed for MRP

What can the Requisition be Released to?

Release StrategyRelease Strategy

Who is Authorised to Release?Who is Authorised to Release?In what Order must the In what Order must the Releasing Occur?Releasing Occur?What is the Release Indicator?What is the Release Indicator?

Who can do what?

Release CodeRelease Code

Two digit code associated withTwo digit code associated witha user IDa user ID

Who is Authorised to release?

Release Procedure

Purchasing

BlockedPurchase

Requisition

IndividualRequisition

Release

SingleRelease

Collective (Multiple)Requisition Release

Y N

Releasing Requisitions

Vendor Schema

Pur Org Schema

Purchase Order

Vendor NationalPur Org STPO

Condition Type: PB00

1. Outline Agreement2. Info Record

(Plant Specific)3. Info Record

Access Sequence: 0002

Pricing Procedure:RM0000

1. Price PB002. Discount RA01

Condition Records

Manual Conditions

OrderQuantity: 120

Item 10 120 PcsItem 10 120 PcsPB00PB00 Price: EUR 99Price: EUR 99

Scale50 for EUR100100 for EUR 99200 for EUR 98

Pricing in Purchasing

Vendor A Vendor B

Vendor A

Paymen

t

Invoice

Verification

Goods Recpt+ Goods Issue

PurchaseO

rder‘L’

Pur Req/Scheduling Agreement

Pur.

“Goods I

ssue”

BOM

Master

----- ------ ------------ - ----- --

------- ------- ---------

Product123

Purchase Order

Components

Delivery

Invoice

$Vendor A

Overview of Subcontracting

BILL OF MATERIAL SC Item 1 qty UOM0010 Component A 2 LB0020 Component B 1 each

PurchaseRequisitionItem Category LSubcontract Item 1 Component A Component B

PurchaseOrderItem Category LSubcontract Item 1 Component A Component B

SchedulingAgreement 2/26/1996 100 5/13/1996 50

Subcontracting Subcontracting Info RecordInfo Record PlantPlant

MONTMONT

Subcontracting in Purchasing

SubcontractPurchaseOrder

Unrestricted- Use Stock

Item 1

• GR for the End ProductGR for the End Product

• Component ConsumptionComponent Consumption

Item 1

SUBCONTRACTING VENDOR

Stock of MaterialProvided to Vendor

A A AB B

A

PlantPlantMONTMONT

Stock Quantity

Stock Quantity

Goods Receipt for the Subcontract Order

Vendor AVendor B

Vendor A

Paymen

t

Invoice

Verification

Goods Recpt+ Goods Issue

PurchaseO

rder‘L’

Pur Req/Scheduling Agreement

Pur.

“Goods Is

sue”

BOM

Master

----- ------ ------------ - ----- --

------- ------- ---------

Product123

P.O.

Components

Delivery

Invoice

$

ComponentComponentSubsequentSubsequentAdjustmentAdjustment

Adjust

3- + 4

NationalInvoice

10MXP100

GI forComponents

+

Subcontracting Settlement

Ad hoc.

Inventory Inventory

TransferPosting

GoodsIssue

GoodsIssue

Consumption Samples Sales Order

GoodsReceiptDelivery Production

Goods Movement

Inventory ManagementInventory Management

GoodsIssue

FromWarehouse

FromConsignment

MaterialDocument------ --------- ---- -- ---------- ------

Reservation------ --------- ---- -- ---------- ------

ProductionOrder

------ --------- ---- -- ---------- ------

BOM------ --------- ---- -- ---------- ------

To ConsumptionCost CentreAssetProjectSales Order

Scrap

Sampling

Goods Issue

RC

Company Code

VC

Company Code

PlantPlantRC00RC00

PlantPlantVC00VC00

Stor. Loc.Stor. Loc.HIRAHIRA

Stor. Loc.Stor. Loc.MAINMAIN

Stock Transfers

Stor. Loc.Stor. Loc.MAINMAIN

ConsignmentConsignmentStoreStore

Transfer Postings

Master

----- ------ ------------ - ----- --

------- ------- ---------

Product789

Master

----- ------ ------------ - ----- --

------- ------- ---------

Product123

UnrestrictedUnrestrictedUseUse

QualityQualityInspectionInspection

Transfer Posting

Open POsOpen POsProduction Production

OrdersOrdersReservationsReservations

WM StockWM StockMat. MovementsMat. MovementsDisplay MaterialDisplay Material

Material XYZUOM pc

Unrestricted Quality Reserved Use Inspection

Total 10,000 2,400 550

CC RC 10,000 2,400 550

RC00 6,600 2,000 0 MAIN 2,000 0 0 HIRA 2,000 1,500 0 HIRB 2,600 500 0

VC00 3,400 400 550 MAIN 400 200 0 HIRA 0 200 550 HIRB 3,000 0 0

Stock Overview

GoodsReceipt

PO

Invoice

Projects CostCentres Assets Material

MastersG/L

Accounts PO

MaterialMasters

PriceConditions

VendorMasters

InvoiceVerification

Invoice Verification

ManualPayment

PaymentProgram

Vendor A Vendor A Vendor B Vendor C

InvoiceIn

Check Bank Transfer

OR

InvoiceInInvoiceInInvoice

Payment Processing

Overview of the FI Module

Accounting Modules Overview The FI Module

- Accumulates accounting data related to external reporting.

- All accounting data generated by all other modules must ultimately be recorded within FI for financial reporting purposes.

The CO Module- Accumulates accounting data related to internal reporting, such as product

costing, budgeting and others.

Sub-Modules of FI

Accounts Receivable Accounts Payable General Ledger Special Purpose Ledger Asset Accounting Legal Consolidation Funds Management Travel Management

Real-time integration with the General Ledger Integration with Sales and Distribution (SD) and Materials Management

(MM) as a part of the Sales Cycle Integration with Treasury Credit Management Incoming Payment Processing Automatic Dunning Function

Accounts Receivable (FI-AR)

Real-time integration with General Ledger Integration with Materials Management as a part of the Procurement

Cycle Integration with Treasury Outgoing Payment Program Vendor Correspondence

Accounts Payable (FI-AP)

General Ledger (FI-GL)

Integrated with other application modules and FI sub-modules

Financial Data Entry User-defined balance sheet / profit and loss

statement versions Multiple Currencies Flexible Report Generator

ClientClient

CompanyCompanyCMDCMD

CompanyCompanyIDID

Client - Company ID - Company Code

CompanyCompanyCodeCode





RC VC CCCC DDDD EEEE

Company CodeCompany CodeFrito Lay

ClientClient PepsiCo

Company CodeCompany CodePepsi

Company CodeCompany CodeTaco Bell

Business AreaBusiness AreaSoft Drinks

Business AreaBusiness AreaSalty Snacks

Client - Company Code - Business Area

A master record contains information relating to an individual object that remains unchanged for a long period of time.

FI Master Data

CompanyCodeEU01

Client

Chart of AccountsCAEU

Chart of AccountsCAUS

CompanyCodeUS01

CompanyCodeUS02

CompanyCodeEU01

Chart of Accounts

Vendor Master Recordsare maintained in Materials Management(MM) and Financial Accounting (A/P)

Customer Master Records are maintained in Sales & Distribution (SD) andFinancial Accounting (A/R)

MMMM

FIFI

SDSD

Integration Points in Master Records

Sales OrderSales Order(SD)(SD)Inquiry / Quotation

Credit Check

Delivery NoteDelivery Note(SD)(SD)

Authorization to Ship

Credit Check

Goods IssueGoods Issue(MM)(MM)Credit Check

Inventory COGS

X X

FI

X

A/R Sales Revenue

Billing DocumentBilling Document(SD)(SD)

Invoice Sent

X

FI

Receive PaymentReceive Payment(FI)(FI)

A/R Cash

X X

Sales Cycle

Create Customer

Master Records

Display CustomerAccount Balances

IncomingPayment

Processing

CreditManagement

Display / ChangeCustomer Line Items

Dunning

FIAccounts Receivable (A/R)

Accounts Receivable in the Sales Cycle

A/P GR/IR

X X

A/P

X

Cash

X

PurchaseRequisition

(MM)

PurchaseOrder(MM)

Goods Receipt

(MM)

InvoiceVerification

(MM)

VendorPayment

(FI)

FI

Planned MRP PP SD Order Run Prod Sales

Order Order

Request for Quotation

Inventory

X

GR/IR

X

Quotation

FI

Procurement Cycle

PO

GR

Invoice

Create, Display and change

Vendor Master Records

Display VendorAccount Balances Process

OutgoingPayment

Display / ChangeVendor Line Items

Create VendorInvoices Manually

(no MM)

FIAccounts Payable (A/P)

Accounts Payable

Process Down Payment

and Credit Memo

Overview of the CO Module

Controlling with the CO system

R/3SDSD

MMMMPPPP

QAQAPMPM

HRHR

FIFICOCO

IMIM

PSPSWFWF

ISIS

Client/ServerABAP/4

COCOEC-EC-EISEIS

CO-CO-OPAOPA

CO-CO-CCACCA

CO-CO-ABCABC

EC-EC-PCAPCA

CO-CO-PCPC

CO-CO-PAPA

Reporting Requirements

External Accounting

Internal AccountingInternal Accounting

External reporting

Costcenterreports

Profitcenterreports

Planactivityprices

Productcost

reports

Profit &loss

(P&L)

BalanceSheet

Cashflow

statement Retainedearnings

InternalInternalreportingreporting

The Components of Controlling Overhead Cost Controlling:

- Cost and Revenue Element Accounting- Cost Center Accounting- Overhead Order Accounting- Activity-Based Costing

Product Cost Controlling:- Product Cost Planning- Cost Object Controlling- Actual Costing/Material Ledger

Profitability Analysis Profit Center Accounting

Cost & Revenue Element Accounting

Overhead Cost Controlling

Product CostControlling

Cost Center Acc.

Overhead OrderAcc.

CostObject

CO

Profitabilitysegments

ActivityBased

Costing

ProfitabilityAnalysis

ProfitCenterAccounting

ProfitCenter Acc.

PrCtrPrCtr 1 1

PrCtrPrCtr 3 3

PrCtr 2

PrCtrPrCtr 4 4

PrCtrPrCtr 5 5

Cost & RevenueElement

Accounting

Answersthe question:

Which costsWhich costswere incurred?were incurred?

Cost Center Accounting

H1IDES EuropeIDES Europe

H1010H1010H1010Corporate

1110ExecutiveBoard

H1000H1000GermanyGermany

H2000H2000UKUK

H2300H2300EspanaEspana

H2100H2100PortugalPortugal

H1110Executive Board

H1120CorporateServices

1230Power

1220Motor Pool

1000Corporate Services

1210Telephone

1200Canteen

H1200H1200Finance &Administration

2100Finance &Admin.

H1210H1210Admin.

H1220H1220HumanResources2200HumanResources

H1230H1230Purchasing

2300Purchasing

H1300H1300Sales &Marketing

H1400H1400TechicalDepartment

Internal Orders

Internal Orders

Accrualorders

Cost Accounting FunctionsCost Accounting Functions

Orders withrevenues

Overheadorders

Investmentorders

Product Cost Planning - Overview

R

BOM RoutingRouting$

Quantity StructurePP Master Data

$

$

$

$ $

$$$

Value Structure

Prices- for materials- for activity types- for processesOverhead

Cost Estimate:Standard costs

Product Cost Planning

Cost Object Controlling

Plannedcosts,actual costs

Simultaneous Costing

OrderInternalMaterialExternalOverheadTotal

$$$$$

Work in processScrapVariances

Settlement

Final CostingPeriod Close

Quantity StructureMaterial movements

Value Structure

Material settlement:Actual costs

Actual Costing

ProcessProcess

Material movements

MaterialMaterialledgerledger

Profitability Analysis - An External View

Company Market

Billing DocumentSD

Profitability AnalysisCO-PA

Key Sales Figures:Revenues, Cost of Sales...

Market Segments:Customer, Product,Product Group, Distribution Channel

CO-CO-PAPA

SDSD

The goal of CO-PA is to determine the profitability of market segments:

Profit Center Accounting - An Internal View

The goal of EC-PCA is to measure the profitability ofThe goal of EC-PCA is to measure the profitability ofareas of responsibility within the organization.areas of responsibility within the organization.

CompanyCompany

Util

ity C

osts

Util

ity C

osts

Direct Labor

Direct Labor PrCtr 1PrCtr 1

PrCtr 3PrCtr 3

PrCtr 2

PrCtr 4PrCtr 4

PrCtr 5PrCtr 5

goods/servicesgoods/services

EC-EC-PCAPCA

Billing DocumentSD

MMMCompany

MMMCompany

Re ven ue

Revenue

Business Consulting Services

Thank You

SAP Overview456[1]

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