SAP- ERP

www.sapendusers.com

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

www.sapendusers.com

What is
SAP
www.sapendusers.com

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

www.sapendusers.com

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

www.sapendusers.com

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
www.sapendusers.com

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
www.sapendusers.com

SAP Business Partners

Business
Development
Partners

Logo and
Implementation
Partners

Platform
Partners

Technology
Partners

www.sapendusers.com

Support & Services

SAP EmployeesLogo/Implementation Partners
Competence
Centers

over 18,330
worldwide

over 10,000 consultants

trained in SAP worldwide

Training

over 400 different

SAP training courses

OSS

Hotline

Online
Service
System

( 24 hours a day
7 days a week )

CCMS

Remote
Support

Computing Center
Management System

Early Watch

User Groups
www.sapendusers.com

Industries Served By
SAP

01 Raw Materials, Mining

Agriculture

15

Consumer Packaged Goods - Food

16

Consumer Packaged Goods Non-Food

02

Oil and Gas

03

Chemical

17

Clothing and Textiles

04

Pharmaceutical

18

Retail and Wholesale

05

Building Materials, Clay, Glass

19

Communication Services, Media

06

Building and Heavy Construction

20

Storage, Distribution, Shipping

07

Primary Metal, Metal Products,

Steel

21

Utilities

22

Financial Services, Banks and

Insurance

23

Government, Public Admin.

and Services

08

Industrial and Commercial

Machinery

09

Automotive

10

Ship, Aerospace & Train

Construction

24

Museums and Associations

11

Transportation Services, Tourism

25

Healthcare and Hospitals

12

Electronic/Optic Equip., Common

Devices

26

Educational Institutions, Unis,

Research

27

Consulting, Software

28

Services

13

Wood and Paper

14

Furniture

www.sapendusers.com

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

www.sapendusers.com

SAP - Enterprise System

www.sapendusers.com

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

www.sapendusers.com

SAP - Three-Tier SAP

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

www.sapendusers.com

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)

www.sapendusers.com

Financial Accounting

FI

General Ledger

Accounts Receivable

Accounts Payable

Tax and Financial Reports

Special Purpose Ledger

Legal Consolidations

Financial Applications. . . . . .
..
www.sapendusers.com

Controlling

CO

Cost Center Accounting

Profit Center Accounting

Product Cost Controlling

Profitability Analysis

Activity Cost Management

Internal Orders

Financial Applications. . . . . .
..
www.sapendusers.com

Fixed Asset
Management

AM

Depreciation

Property Values

Insurance Policies

Capital Investment
Grants

Financial Applications. . . . . .
..
www.sapendusers.com

Project System

PS

Project Tracking

Work Breakdown Structure

Budget Management

Cost and Revenue Planning

Networks and Resources

Financial Applications. . . . . .
..
www.sapendusers.com

Sales and Distribution

SD

Computer Aided Sales

Quotations

Sales Order Management

Pricing

Delivery

Invoicing

Logistics Applications . . . . . . . .
www.sapendusers.com

Materials Management

M
M

Procurement

Inventory Management

Vendor Evaluation

Invoice Verification

Warehouse Management

Logistics Applications . . . . . . . .
www.sapendusers.com

Production Planning

PP

Sales & Operations

Planning

Demand Management

Material Requirements
Planning

Production Activity Control

Capacity Planning

Logistics Applications . . . . . . . .
www.sapendusers.com

Quality Management

QM

Quality Certificates

Inspection Processing

Planning Tools

Quality Control

Quality Notifications

Logistics Applications . . . . . . . .
www.sapendusers.com

Plant Maintenance

PM

Plant Maintenance

Equipment and Technical

Objects

Preventive Maintenance

Service Management

Maintenance Order
Management

Logistics Applications . . . . . . . .
www.sapendusers.com

Human Resources

HR

Personnel Administration

Payroll, Benefits

Time Management

Planning and Development

Organization Management

Human Resources. . . . . . . .
www.sapendusers.com

Industry Solutions

IS

Banks
Hospitals
Oil Companies
Publishing Sector
Telecommunications
Retail
Utilities
Others

Industry Solutions. . . . . . . .
www.sapendusers.com

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

e.g. Cross functional, Operational

www.sapendusers.com

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

www.sapendusers.com

Business/SAP/Audit
Process Views
Business
Processes

Application Level Client Environment

Model Level - SAP
Process Model
Implementation
Level - SAP
Software Model

SAP Modules

Audit
Cycles

Organizations
Audit - Business
Cycles
www.sapendusers.com

Relationship of Audit to
SAP
SAP Module Functional Categories, Modules and

Components
Business Cycles Audits and SAP Modules
Audit

SAP Processes
(Revenue)

Account
Balances

(A/R)

SAP
Components

SAP
(Financial Modules
Accounting)

www.sapendusers.com

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
www.sapendusers.com

www.sapendusers.com

Nirmal (originally designed).

Collection, modification & circulated by

www.sapendusers.com

www.sapendusers.com

www.sapendusers.com