Introduction to SAP

Agenda

Understanding ERP

Overview of SAP

Understanding different

Modules, Transaction code and

Master data

What is an ERP?

Short for Enterprise Resource PlanningIntegration of business functions such as Inventory Control, Order tracking, Customer service, Finance and Human resources into one seamless application Usually runs on a RDBMS

Why ERPOne system might manage

accounting. Another might control production planning. A third might serve the Human Resources department.

Some large companies had hundreds of different systems, and many companies built custom systems from scratch to meet their business needs.

Why ERPSometimes different

computer systems didn't communicate with each other. Duplicate information had to be entered by hand in each system. This was slow, inefficient and subject to errors.

After ERP

Sales

Accounts

Production

HR

Purchase

Sales Admin.

SAP Overview

SAP R/3 is an ERP (Enterprise Resource Planning) system

SAP = Systems, Applications and Products in Data Processing (R = real time, 3 = 3 tier)

It is pronounced as separate letters, and not as the word “sap

What is SAP R/3

History and Facts About SAP

SAP was founded in 1972 in Mannheim, Germany by Wellenreuther, Hopp, Hector, Plattner and TschiraSAP system comprises of a number of fully integrated modules, which covers virtually every aspect of the businessWorld's third-largest independent software provider with 56,000 installations serving 12 million users at 18,800 organizations in 120 countries Number one vendor of standard business application software, with a market share of 85% In North America and 65% Worldwide.

History and Facts About SAP

Available in 14 languages. 34% of SAP's customers worldwide are under $200 million. 10 out of the top 10 US companies with the highest market value use SAP software. 8 of the top 10 largest US corporations use SAP software. 8 of the top 10 highest profit US companies use SAP software. More than 7500 customers in over 90 countries have chosen SAP

Why do companies use SAP

Old software system no longer meet needs.

Companies need accurate, reliable and real time information.

To increase accountability

To improve Business processes

SAP Modules

SAP R/3SAP R/3

FIFI

WFWF

PSPS

PMPM

WMWM

PPPP

MMMM

SDSD

HRHR

AMAM

COCO

QMQM

PP – Production Planning

WM – Warehouse Management

PM – Plant Maintenance

AM – Asset Management

PS – Project System

MM – Materials Management

SD – Sales and Distribution

QM – Quality Management

WF – Workflow

HR – Human Resources

CO – Controlling

FI – Financial Accounting

TRANSACTION CODEMost transactions within

SAP are associated with a four-character code called a Transaction code.

OVER 15000T-CODES

MASTER DATAMaster data is important,

long-term data stored within the SAP system.

Vendors, customers, plant IDs, the chart of accounts, and product numbers are all examples of information that is stored as master data records

DOCUMENTA document is data created in association with a particular business event or transaction.

Sales orders, purchase orders, material requisitions, and general ledger postings are all examples of documents stored within SAP.

Every document created in SAP is assigned a document number that uniquely identifies it.

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