SAP- ERP

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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 realtime environment

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What is SAP

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What is S A P
SAP Stands for Systems Applications and Products

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About SAP
S ystems, A pplications, P roducts...
Founded in Walldorf, Germany in 1972

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World Leader in enterprise business software solutions

4th

largest independent software supplier in the 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

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Why SAP is Unique

Highly integrated Comprehensive functionality Complex data structures Availability of data Single point of entry On-line data capture and real-time update Requires strong application knowledge Causes personnel and organizational

structure changes Causes business process changes

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SAP Business Partners

Business Development Partners Logo and Implementation Partners

Platform Partners

Technology Partners

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Support & Services

SAP Employees Logo/Implementation Partners Competence Centers
over 18,330 worldwide over 10,000 consultants trained in SAP worldwide over 400 different SAP training courses

Training

Online Service System

OSS

( 24 hours a day 7 days a week )

Hotline

Remote Support Early Watch User Groups

Computing Center Management System

CCMS

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Industries Served By SAP

01 Raw Materials, Mining Agriculture 02 03 04 05 06 07 08 09 10 Oil and Gas Chemical Pharmaceutical Building Materials, Clay, Glass Building and Heavy Construction Primary Metal, Metal Products, Steel Industrial and Commercial Machinery Automotive Ship, Aerospace & Train Construction 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Consumer Packaged Goods - Food Consumer Packaged Goods Non-Food Clothing and Textiles Retail and Wholesale Communication Services, Media Storage, Distribution, Shipping Utilities Financial Services, Banks and Insurance Government, Public Admin. and Services Museums and Associations Healthcare and Hospitals Educational Institutions, Unis, Research Consulting, Software Services

11 Transportation Services, Tourism 12 Electronic/Optic Equip., Common Devices 13 14 Wood and Paper Furniture

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SAP - The Product

Original product was SAP R/2 on the

mainframe introduced in 1972 SAP R/3 introduced for smaller platforms in 1992 Developed using a fourth generation proprietary language developed by SAP called ABAP/4 Major SAP versions:
2.2h 3.0d, 3.0e, 3.0f , 3.1g, 3.1h, 3,1i 4.0b, 4.5b, 4.6b, 4.6c, 4.7 5.0, 6.0

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SAP - Enterprise System

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SAP - Client/Server Environment

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 SAP Structure

GUI Graphical User Interface or Web Interface Application server (one or many) Database server (one single location)

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SAP Components
SAP 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 to specialized vertical industries: Industry Solutions (IS) Special set of modules positioned between the technical and functional areas of the system: Cross Application (CA) Modules Workflow (WF)

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Financial Accounting
q q

General Ledger Accounts Receivable Accounts Payable Tax and Financial Reports Special Purpose Ledger Legal Consolidations

FI

q q q q

Financial Applications. . . . . . ..

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Controlling
q q

Cost Center Accounting Profit Center Accounting Product Cost Controlling Profitability Analysis Activity Cost Management Internal Orders

CO

q q q q

Financial Applications. . . . . . ..

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Fixed Asset Management

q q q q

Depreciation Property Values Insurance Policies Capital Investment Grants

AM

Financial Applications. . . . . . ..

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Project System
q q

Project Tracking Work Breakdown Structure Budget Management Cost and Revenue Planning Networks and Resources

PS

q q q

Financial Applications. . . . . . ..

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Sales and Distribution

q q

Computer Aided Sales Quotations Sales Order Management Pricing Delivery Invoicing

SD

q q q q

Logistics Applications . . . . . . . .

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Materials Management
q q q q q

Procurement Inventory Management Vendor Evaluation Invoice Verification Warehouse Management

M M

Logistics Applications . . . . . . . .

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Production Planning
q

Sales & Operations Planning Demand Management Material Requirements Planning Production Activity Control Capacity Planning

PP

q q

q q

Logistics Applications . . . . . . . .

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Quality Management
q q

Quality Certificates Inspection Processing Planning Tools Quality Control Quality Notifications

QM

q q q

Logistics Applications . . . . . . . .

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Plant Maintenance
q q

Plant Maintenance Equipment and Technical Objects Preventive Maintenance Service Management Maintenance Order Management

PM

q q q

Logistics Applications . . . . . . . .

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Human Resources
q q

Personnel Administration Payroll, Benefits Time Management Planning and Development Organization Management

HR

q q q

Human Resources. . . . . . . .

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Industry Solutions
q q q

IS

q q q q q

Banks Hospitals Oil Companies Publishing Sector Telecommunications Retail Utilities Others

Industry Solutions. . . . . . . .

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Audit Cycles
Revenue Expenditure Inventory Management Fixed Assets Treasury Payroll/Personnel Business Processes Or: audits specified by your organization

e.g. Cross functional, Operational

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Management 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/Audit Process Views

Business Processes Application Level Client Environment Model Level SAP Process Model Implementati on Level SAP Software Model

SAP Modules

Audit Cycles

Organizations Audit Business Cycles

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Relationship of Audit to SAP

SAP Module Functional Categories, Modules and

Components Business Cycles Audits and SAP Modules

Audit SAP Processes (Revenue) Account Balances SAP Components

(A/R)

SAP (Financial Modules

Accounting)

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Linking Audit Cycles to SAP Modules

Audit Business Cycles
Treasury Fixed Assets Expenditure Revenue Inventory Management Payroll and Personnel

SAP Module Functional Category Financial Applications

Logistics Applications

Human Resources
Basis Component Cross Applications Industry Solutions

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