SAP ABAP Training

Srinivasulu Nettem 24-Feb-2010

ERP Overview

Enterprise Resource Planning

18 December 2012

Enterprise Resource Planning

... synchronization of Company functions...

Purchase

Manufacturing

Finance

Sales
18 December 2012

Enterprise Resource Planning

and extended to the complete value chain...

Tier I Component Manufacturer

Vehicle OEM
Tier II Component Supplier
18 December 2012

Enterprise Resource Planning

... delivering administrative and decision support with...

Decision support and analysis Processes monitoring & feedback

Administrative registration

18 December 2012

What is an ERP solution...?

. Integrated across the primary and support processes Distribution

Manufacturing

Marketing

Materials

Planning and Execution

Finance

Engineering
Human Resources

Sales

18 December 2012

The ERP application

An integrated suite of business applications, which.. Closely links, monitors, and controls primary enterprise resources like manpower, machine, material, methods, market and money Enables corporates to readily change their processes to adapt to the ever changing business scenario Provides expertise in industry specific business processes Entails Parameterization / Configuration Designing & Customization Testing and Implementation Training

18 December 2012

Why clients buy ERP?

Corporate Initiatives Strategic initiatives A requisite capability in a competitive global business Operational initiative A foundation for performance and cost improvement via integration Organizational initiative To initiate a major organizational change within the company Technology IT is making the transition from a supporting operational entity to becoming a strategic competitive tool. BECAUSE OTHERS ARE BUYING IT!!!

18 December 2012

Recent business trends favoring ERP growth

Business Process Reengineering ( BPR ) Most large companies are attempting to cut in-house development costs, improve customer service, and speed products to market by reorganizing their existing business processes

Software Pricing Licensing and pricing of mainframe based packaged applications are tied to the size of mainframe system on which the applications run, but now customers are now demanding user-based licensing options and major corporate applications like SAP provide this instead of the conventional platform-based pricing technique

18 December 2012

Recent business trends favoring ERP growth

Globalization As businesses are becoming more global in scope, people are demanding packaged corporate applications that are available in a variety of languages with support for multiple currencies

Integration As more and more companies are going for BPR, there is increase in demand for integrated solution e.g.. different applications sharing a common database and thus enabling data definitions and business rules to be applied across an entire organization with the facility of doing modifications at one location only

18 December 2012

Business process benefits clients expect from an ERP project

Global process/ Product management Integrated Supply Chain Management Leverage purchasing and vendor management Order cycle time/ customer service improvement Inventory reductions Reduced information systems costs on an ongoing basis Improved business management through worldwide integration and information

Vendors

Inbound

Manufacturing

Transportation Distribution Logistics

Delivery

Customer

Consumer

Logistics and Distribution

Sales & Customer Service

18 December 2012

Major ERP vendors

SAP R/3 Peoplesoft

Oracle
Baan JD Edwards

18 December 2012

What results can be expected from an ERP culture?

q Reduced working capital requirements q Improved customer service q Improved direct labour productivity q Reduced purchase costs ERP q Reduced obsolescence q Reduced overtime q Having the figures to make decisions q Having accountability throughout the organization q Improved quality of life
18 December 2012

SAP R/3 Overview

Systems Applications & Products in Data Processing

18 December 2012

SAP AG At a Glance

Founded in Germany in 1972

Market Leader in Industrial Enterprise Application (IEA) About 56% market share in the ERP market Worldwide presence in over 50 countries 18,000+ employees Trained consultants doubled since 1996 (40,000) About 20,000 companies in 120 countries Around 64,500 installations of SAP Strength lies in its high degree of integration, mainly for large, global corporate enterprises Significant presence in Global Fortune 500 companies
18 December 2012

SAP R/1 , R/2

The R/1 system Developed for ICI Chemical Released 1972 Focused on Sales & Distribution and Materials Management Discontinued after release of R/2 The R/2 system Reorganized as leading mainframe software for large multinational corporations No sales effort planned reactive only 4,300 copies worldwide in 1993 Mainframe-based to replace user legacy software; co-existence and migration strategy underway for R/2 and R/3

R/2 Basis System

18 December 2012

SAP R/3 : A comprehensive business solution

Sales & Distribution Materials Mgmt.

SD

Financial Accounting

FI

MM

Product Planning

PP

R/3
HR

CO
Controlling

TR
Treasury

Quality Mgmt.

QM

Plant Maintenance

Client/Server PS PM ABAP/4 WF
Workflow Human Resources

Project System

IS
Industry Solutions

18 December 2012

SAP R/3 : 3 Tier Architecture

The Presentation Layer

Those SAP R/3 software components that specialize in interacting with end-users form the Presentation Layer.

The Application Layer

Those SAP R/3 software components that specialize in processing business applications form the Application Layer.

The Database Layer

Those SAP R/3 software components that specialize in the management , storage and retrieval of data form the Database Layer
18 December 2012

SAP R/3 : 3 Tier Architecture

Presentation Layer components reside in:

Application Layer components

reside in:

Database Layer components reside in:

Presentation servers: Systems capable of providing a graphical interface.

Application servers: Specialized systems multiple CPUs and vast amounts of RAM.

Database servers: Specialized systems with fast and large hard drives.
18 December 2012

SAP R/3 : 3 Tier Architecture

Presentation Layer components are installed across many PCs.

The Application Layer components are installed across one or more highend servers. The Database Layer components are installed on high-end database server.
18 December 2012

SAP R/3 Overview

Sales & Distribution Materials Mgmt.

SD

Financial Accounting

FI

MM

Product Planning

PP

R/3
HR

CO
Controlling

TR
Treasury

Quality Mgmt.

QM

Plant Maintenance

Client/Server PS PM ABAP/4 WF
Workflow Human Resources

Project System

IS
Industry Solutions

18 December 2012

Integration

All business processes throughout the supply chain are executed in one system sharing all information SAP R/3
S U P P L I E R

Workflow

C U S

Procurement

Production

Distribution

T O M E R

MM

PP
Finance and Accounting FI CO

SD

18 December 2012

SD: Sales and Distribution

SAP R/3
Sales & Distribution . . . . . . . .

SD

18 December 2012

SD Overview
SD
Inquiry Quotation Materials Planning Sales Order Production Purchasing

Pricing Delivery to Customer

Picking Goods Receipt Packing

Goods Issue
Invoicing Transportation

Customer Stock

18 December 2012

Process Chain: Sales Distribution

Sales/Distribution Chain

Inbound Logistics from Materials Management

Sales Order & Distribution Process

Outbound Logistics to Customer

Receive Payment
FI Support Customer Sales (Customer Info Analysis) - Optional -

Create Invoice
FI/CO/PA
- Create pick list - Create transportation work list - Create loading work list

Issue Goods (Ship Product)

FI MM

Process Customer Inquires - Optional -

(Documents)
- Check credit

Create Delivery Note

Provide Customer Quotations - Optional -

Check product availability - Determine pricing - Estimate delivery schedule - Determine conditions of sale
-

Create Sales Order

FI/CO/PA MM PP Support Customer Agreements - Optional 18 December 2012

(Activities)

Order Entry
PP MM FI

FI
Credit Management

Dynamic Availability Check

Cash Forecast

?
OK
18 December 2012

Delivery/Shipment Processing

FI
Ship to party: C100 Item Material Qty 10 6301 10 20 6412 10 30 1507 25 . . . .

MM WM

MM
Credit Management Static Availability Check
Delivery Note

Picking List

Picking Packing Transportation

18 December 2012

Picking/Packing
Sales Order

Delivery Picking without Picking Confirmation Print Picking List Picking with Picking Confirmation Picking Request

Confirm Picking Request

Picking Confirmation

Goods Issue
18 December 2012

Invoicing
CO PA CO PCA

Profit Center Accounting/Profitability Analysis Accounts Receivable/General Ledger Cash Forecast Single Invoices Collective Invoices Invoice Lists Credit/Debit Notes

FI FI

EDI

18 December 2012

MM Overview

SAP R/3

Materials Management . .

MM

18 December 2012

MM Overview
MM
Material requirement planning
External procurement Internal procurement

Purchasing
Invoice verification
Goods receipt

Production Master data Material Batch Vendor Customer G/L Storage bins ...
18 December 2012

Warehouse management

Inventory management
Goods issue

Transfer posting

Internal and external accounting

Sales and distribution

Material - Central Master Record for Logistic

456
Inventory Purchasing Desc:---------------------

123
Inventory Quality Sales Information Production Information Desc:---------------------

Raw Material - 456

Product - 123

18 December 2012

Data in the Vendor Master

Maintenance Level Purchase Organization Company Code Mandatory maintenance at the Purchasing Organization Level Optional Maintenance at the Plant Level, the Vendor Sub-Range Level or a combination of the two

Client

General Data Address Phone and Fax Number Control Data

Purchasing Data Terms of Payment Contact Person Minimum Order Value

Account Data Payment Terms Payment Method Accounting Clerk

18 December 2012

External Procurement Environment

Requirement Determination Source List Quota Arrangement Purchase Requisition RFQ

Quotation

Outline Agreement

Source Determination Vendor Selection Purchase Order

Price History Purchasing Data

Info Record

Goods Receipt

Invoice Receipt

18 December 2012

Goods Movement
Ad hoc. Goods Receipt

Delivery Inventory

Production Inventory Transfer Posting

Goods Issue
Consumption Samples

Goods Issue
Sales Order
18 December 2012

Invoice Verification

CO FI
Orders / Projects /Cost centers G/L accounts / Accounts payable Payment OK !

Vendor 3

Vendor Vendor invoice invoice

Tolerance Check?
e.g...

Blocked Invoice Release of Blocked Invoice

Invoice Verification

Delivery Invoice Preliminary Posting Automatic Price Update

18 December 2012

PP Overview

SAP R/3

Production Planning . .

PP

18 December 2012

Production Planning Cycle

Sales and Operations Planning Master Production Scheduling

PP
Master Data Material Master Bill of Materials Work Centers Routings PRT

Sales & Distribution

Demand Management MRP MRP List Production Order Cycle or Purchase Order Cycle

Materials Management

Capacity Planning Plant Maintenance

Costing

18 December 2012

Production : Process Chain

Production Chain Inbound Logistics from Procurement or Production Chain Manufacturing Process Outbound Logistics to Materials Management or Sales Chain

Archive/Delete Order Settle Production Order FI CO Transfer Produced Goods to Inventory FI Confirm production of goods is completed Produce Goods

Determine Production Requirements via MRP Output or Manually) Create production order (via conversion of planned order to production order or manually) Check material availability (Automatic) Release Production Order Print shop floor papers (actual workorders)

Withdraw materials from inventory (automatic/manual)

MM
18 December 2012

Production Planning

1. Production Planning Functionality 2. Master Data 3. Sales and Operations Planning & Demand Management 4. MRP 5. Production Order & Capacity Planning

18 December 2012

Material Requirements Planning

Demands
Quantity: 12.000

Stochastic Deterministic Planning

Demands 3. Qrt 4. Qrt

Bill of Material Explosion

Capacity Planning Lot Sizing Procedures Net Change

18 December 2012

MRP - Planning Procedures

Planning Procedures

Deterministic MRP

Consumption-Based Planning

Forecast-Based Planning

Reorder Point Planning

Automatic Reorder Point

Manual Reorder Point

18 December 2012

Production Control

MM

FI CO
Goods Issue Costs

Open

Production Order

Release

Production Order

Planned Orders
18 December 2012

QM Overview

SAP R/3

Quality Management . .

QM

18 December 2012

QM Overview

QM

The QM application module is a FI SD Sales & qualityFinancial control and information Accounting Distribution system supporting quality CO MM Materials Controlling Mgmt. planning, inspection, and control PP AM Product Fixed Assets for manufacturing and Planning Mgmt. procurement

R/3

Quality Mgmt.

QM

PS
Project System

PM
Plant Maintenance

WF
Workflow

HR

Human Resources

IS
Industry Solutions

18 December 2012

QM in Logistics
History-dependent intensity of quality inspections

QM

Goods receipt

Production Inspection during production Defects recording in QM Control charts Goods issue Quality management in SD (certifies quality)
18 December 2012

PM Overview

SAP R/3

Plant Maintenance . .

PM

18 December 2012

Plant Maintenance - Overview PM

Master Data Pre-defined work steps Notifications Create Work Orders Emergencies Labor Special Tools Preventive/Predictive Maint. WOs Shop Papers Planned Work Orders External Services

Parts/Supplies

Material Requisitions

Reporting

Schedule WOs

Close and Settle WO

18 December 2012

FI Overview

SAP R/3

Finance . .

Fi

18 December 2012

Components of FI

FI

General Ledger

FI-GL

FI-SL
Accounts Receivable

Special Ledger

FI-AR
FI-LC
Legal Consolidation Accounts Payable

FI-AP

Asset Accounting

FI-AA

18 December 2012

Corporate Structure
Financial Management Area Financial Management Area Financial Management Corp. Group Level Area

Company Code (Company)

Legal Entity Controlling Controlling Controlling Controlling Area Area Area Area Controlling Level Plant Cost Centers Management Units Work Place/Job Material Product
18 December 2012

The Elements of Financial Accounting

Foreign Exchange Management

Business Analysis

Finance Information System Executive Information System G/L Information System

Cash Management and Forecast

Multiledger
Accounts Payable
Invoice Verification Bank Accounts Payables General Ledger Extended General Ledger

Accounts Receivable
Credit Management
18 December 2012

Consolidation

The Components of FI
Configuration
Organizational Structures Company Codes Business Area Organization of Accounting Ledger/Sub-ledger Chart of Accounts Credit Control Setting Credit Limits Master Records G/L Accounts Customers Vendors Banks Chart of Depreciation Depreciation Areas Assets Extended General Ledger Group Company Number Ranges
18 December 2012

Functionality
Documents/Transactions Fiscal Year Posting Adjustments Payment Terms Balance Sheets/Income Statements Foreign Currency Closings Taxes On-Line Display Special G/L Transactions Interest Calculation Planning Correspondence Payment Program Fixed Assets Reporting Analysis Legal Consolidations

Modules
General Ledger Special Ledger Accounts Payable Legal Consolidations Accounts Receivable Credit Management Asset Accounting Cash Management and Forecast Treasury

FI

CO Overview

SAP R/3

Controlling. .

CO

18 December 2012

Components of CO CO

CO Configuration Organization Structures Master Data Planning Setup Criteria and Values Valuation
Cost Center Accounting Order and Project Acctg. Transaction-Based Postings Periodic Allocations

CO Modules
Profit Center Acctg. Product Costing Activity-Based Costing Product Costing Budgeting Profitability Analysis Business Planning & Control

Functionality
Settlement Internal Orders Open Item Management Planning Transaction-Based Posting Periodic Allocations Monitoring Actual Activities vs. Planned

Profitability Analysis

CO

Overhead Management

18 December 2012

The Elements of Managerial Accounting

Overhead Cost Controlling Cost Centers

Overhead Cost Controlling

Profitability Analysis PA

Cost of Sales PCA

Report Structure: Market Segment Region Division

Cost of Period Report Structure: Profit Center GL Accounts

Controlling

18 December 2012

Integration Within FI/CO

FI Financial Accounting
Asset Accounting Asset Accounting Investment Controlling Plant Maintenance Asset Accounting Gen. Ledger Accounting Accounts Receivable Accounts Payable Cash Management

Chart of Accounts Management Accounting

Overhead Cost Controlling Cost Center Controlling Actual Costing Static Standard Costing Product & Production Controlling Mass Production Continuous Flow Prod. Batch Production Make to Order Prod.

CO

Sales & Profitability Controlling Cost of Sales Accounting

Period Accounting

Account Revenue

Flexible Standard Costing

Order Controlling

Central Line Items Project Controlling

Central Documents

Central Totals
18 December 2012

Integration

Planned Requirement

PP
Customer Order

MM
MRP Requirement on component level

SD

Planned Order

Shipping

Purchase Order

Production Order

Invoicing

Goods Receipt Production completed Invoice Verification

Account Receivable

FI
Order Settlement

FI
Accounts Payable

CO
Which modules are involved?
18 December 2012

SAP R/3 : Components

Application Master Data Transaction Data

ABAP Programs
Organization Structure Configuration Key Data Elements Functionality Configurations
18 December 2012

What is Customization ?

Customization
the adaptation of application software to customerspecific needs is accomplished in two ways :

Coding
Programming customer-specific code that replaces or complements components of the application

Configuration Rendering the application appropriate to a specific

customer by specifying data on which the application operates

18 December 2012

Organizational Structures in R/3

Organizational Units Cost Accounting Client Controlling Areas

External Logistics Accounting

Company Codes
Sales Organizations Purchasing Organizations

Internal Logistics (MRP/Production)

Valuation Areas Plants

Inventory Management Storage Locations/Batches/Special Stocks

18 December 2012

Organizational Structure in SAP R/3

Production Planning

Financial Accounting Company Code

Plant

Controlling Controlling Area Sales and Distribution Sales Area

Client

Human Resources Personnel Area Materials Management

Purchasing Organization
18 December 2012

ABAP Programming

SAP R/3 applications are written in the ABAP programming language, and run within the application layer of the R/3 System. ABAP programs communicate with the database management system of the central relational database (RDBMS), and with the graphical user interface (SAPgui) at presentation level.

18 December 2012

Why we need ABAP Developments?

SAP Solution

SAP R/3 scope

18 December 2012

SAP Solution

SAP R/3 scope

Specific company requirements

18 December 2012

SAP Solution

SAP R/3 scope

Specific company requirements

New Functionality Development

18 December 2012

SAP Solution

SAP R/3 scope

Specific company requirements

New Functionality Development

Non SAP applications

18 December 2012

Types of ABAP Developments

Reports
Interfaces

Conversions
Enhancements

Forms
Workflow
18 December 2012

18 December 2012