(S- SYSTEMS A — APPLICATIONS P - PRODUCTS in data processing) The name SAP being a German company is an acronym for “Systeme Amvendungea, Produkte in der Datenverarbeitung. This is trmslated into English as: Systems Applications and Products in Data Processing. SAP SE is a German nmltinational sofiware company founded in 1972 known for making enterprise resource planning (ERP) software to manage business operations and customer relations. Headquartered in WALLDORF, BADEN- WURTTEMBERG, GERMANY, with regional offices in more than 130 countries. The company has over 3, 20, 000 customers in 190 countries. It is name of the company as well as it is ERP product and is the leading ERP software package, ie.no.1 in the ERP market. It is an ERP system that handles an organization's finance, controlling, fmman resource, sales, distribution, material management, warehouse, production. security, research and many other departments. In short, it handles plmost all departments of an organization. Not just that but SAP has a special industry specific solutions for almost all industries such as manufacturing, insurance, pharmaceuticals, security, finance, treasury etc. SAP is the world leader in enterprise applications in terms of software and software-related service revenue. Based on market capitalization, it is the world’s third largest independent software manufacturer. ‘Founded in 1972 by five ex-IBM employees: ‘Scanned with CamSeannersoftware package, ie.no.1 in the ERP market, It is an ERP system that handles on organization's finance, controlling. human resource, sales. distribution. material management, Warehouse, production. security, research and many other departments. Io short, it handles almost all departments of an organization. Not just that but SAP has a special industry specific solations for almost all industries such as manufacturing. insurance, pharmaceuticals, security, finance, treasury ete. SAP is the world leader in enterprise applications in terms of sofiware and soffware-related service revenue. Based on market capitalization, it is the world’s third largest independent sofiware manufacturer. Founded in 1972 by five ex-IBM employees: = Wellenreuther Hopp Hector & — Platiner <» Tehira Facts about SAP Re ‘Scanned with Cams> Number | vendor of standard business application software, with a world-wide market share of 53% - 60%. Leading global provider of clienvserver business software solutions. v > 3rd largest independent software supplier in the world. v Available in 14 languages. ¥ 8 ofthe Top 10 US corporations use SAP. > SAP has its presence in More than 150 countries. Why SAP is leading in the ERP Market? (Scope of SAP) > BUSINESS SUITE ~ SAP offers various applications along with the SAP ERP to meet the customer requispments. > INTEGRATION - SAP Ri system is a business sofiware package designed to integrate all areas of a business. It provides end to end solutions for financials, manufacturing. logistics, distribution etc. All business processes are executed in one SAP System and sharing common information with everyone. > TAILOR MADE PRODUCT — Flexibility for changes (business and IT) Customization can be done. ‘Scanned with CamSeanner- 3rd largest independent software supplier in the world. > Available in 14 languages. ¥ 8 of the Top 10 US corporations use SAP. > SAP has its presence in More than 150 countries. Why SAP is leading in the ERP Market? (Scope of SAP) > BUSINESS SUITE - SAP offers various applications along with the SAP ERP to ‘meet the customer requirements. > INTEGRATION - SAP R’3 system is a business software paclage designed to integrate all areas ofa business. It provides end to end solutions for financials, manufacturing, logistics, distribution etc. All business processes are executed in one SAP System and sharing common information with everyone > TAILOR MADE PRODUCT - Flexibility for changes (business and IT) Customization can be done. Reasons to use SAP (Merits of SAP): > Global Basis Faster Speed Flexibility for changes (Business & IT) Agility (quickness. alertness) vvyvy Extended Supply Chain Management ‘Saned with CamScannerReasons to use SAP (Merits of SAP): > Global Basis Faster Speed Flexibility for changes (Business & IT) Agility (quickness, alertness) Extended Supply Chain Management Reach New Opportunity Knowledge Sharing vyvvvyvvy Creativity Focus ~ something advanced/new Technology /advanced technology SAP partners * Implementation Partners (CONSULTANT) Role: - Implementation Partners understand the business need and requirements of the organization. ‘Scanned with CamSeanner* Support Partners (QUERY SOLVER) Role: - After implementation, when end user starts using sap software in his day to day business activities and if he faces any issue or trouble shooting in operating or working on SAP then the support project team resolves the query of client. resolves technical as well as functional issues of the client that is to make needed changes in the system as per the need & requirements of the client within the present configuration or else if needed enhancement to be done in the system, it is taken care by the support team in order to smoothen the business operations of the client. This is the role of support team. = Roll over Partners (roll over basically means up gradation) Role: - When the up gradation needs to be done in the system of present SAP user system or upgrading the system whenever technological up gradation is done by the SAP Germany, so upgrading the system of present sap user to the new technological development is called Roll over projects. © Authorized Education Partners ‘Scanned with CamSeannera a a ee SAP RVI: ‘The first version of SAP software was launched in and around 1972 known as the “U1 system” and was initially used for financial acpounting. Used to run on IBM Servers and the MS-DOS (Microsoft Disk Operating System) DOS (Disk Operating System) is an operating system that runs from a hard disk drive, The term can also refer to a particular family of disk operating systems. most commonly MS-DOS (Microsoft Disk Operating System). R stands for real-time data processing. It is 1 - tier architecture in which three layers PRESENTATION, ‘APPLICATION and DATABASE are installed in one system/server. Server One — Presentation + Application + Database SAP R/2: - B/2 is SAP SE’s mainframe solution and was first compact software package for the whole spectrum of business applications. In 1979 second version of SAP R/2 was released with IBM'S Database to handle different languages and currencies. Mainframe computers are computers used primarily by large organizations for critical applications, bulk data processing, such as census, industry and consumer statistics, enterprise resource planning, and transaction processing. ‘Scanned with CamScannersentation + Application * Database server One— Pres SAP U2: - inframe solution and was Gist compact sofware package for the whole 1979 second version of SAP R/2 was released with 2 is SAP SE's ma spectrum of business appliations. 19 | IBM'S Dalatase to handle different languages and currencies. computers used primarily by laree organizations for critical Mainframe compoters are c applications, bulk dsta processing, sue ‘as census, industry and consumer sing. ce planning, and transaction pr statistics, enterprise 1 ‘A census isthe procedure of systematically acquiring and recording information about the a vabers ofa given population. It isa regularly occurring and official count ofa particular population The tenn is used mestly in connection sith national population and housing ther common censuses include agriculture, business, and traffic censuses. ex science, transaction processing is information processing that is divided into individoal, indivisible operations called transactions. Each transaction must succeed or {ailas a complete unit it can nevet be only partially complete. er sc RU? is two - tier architecture in which 3 layers PRESENTATION, APPLICATION and DATABASE are installed in two separate servers. That is, Preseotation in one server, ‘Application and Database together in the second server. i Conard Pracantatinn Garrsr? — Annlicatinn + Tatahace ‘Scanned with CamSeannerServer | ~ Presentation, Server ?— Application, Server 3 ~ Database The current successor software to SAP R/3 is known as SAP ERP Central Component (ECC). SAP is based on the architecture of R/3 on a three — tier client/server structure, SAP system conlains three layers such as Presentation Layer, Application Layer and Database Layer: (SAP RU3 Architecture) > Presentation Layer ~ Itis a layer where the user works with SAP GUI. It interacts ‘with Database Layer via Application Layer. It is usually installed on a user's ‘workstation, To start it, the user double-clicks on an icon on the desktop or chooses 3 menu path. When started, the presentation server displays the R/3 menus within a window. This window is commonly known as the SAPGUI, or the user interface (or simply, the interface). The interface accepts input from the user in the form of keystrokes, mouse-clicks, and function Keys, and sends these requests to the application server to be processed. The application server sends the results back to the SAPGUI which then formats the output for display to the user. > Application Layer — It interacts between Presentation and Database Layer. Application layer needs technical work. As ABAP (Advanced Business Application Programming) is the programming language of SAP R/3 developed by SAP SE. so bere, technical role of ABAP comes into the picture. ‘Scanned with CamSeannerSAP Labs SAP Labs are a major intermediate between SAP Germany, SAP India, companies and partners SAP Labs are the Research and Development (R&D) organizations of the parent company. Labs look after all projects. SAP India controls education matters. SAP Labs and SAP India are representatives appointed by SAP Germany. Planning and decision making lies with Germany. ‘SAP Labs are 3 largest development hnb for SAP globally. b SAP's main 4 Inb’s locations are ~ Germany, India, China and United States. Location of SAP Labs in India so far — Bangalore, Pane and Gurgaon. Regional offices are in more than 150 countries, SAP Labs India research. design and deliver leading-edge sofiware applications that Gehance and extend SAP solitons and are recognized within the SAP global organization as cone of the prime contributors to innovation, quality and service ‘Scanned with CamSeannerMODULES OF SAP; > SAP FI (Finance): Finance module considers being the base module. It covers vital areas such as General Ledger (GL), Account payable (AP), Account Receivable (AR) and Asset Accounting (AA). SAP FI and CO together known as FICO and it is. considered as King of SAP modules. > Controlling (CO): Controlling is kind of sister module for FL Controlling is mostly used for imernal controlling and intemal reporting. It includes cost center accounting. (CCA), Profit center accounting (PCA) Product costing (PC), Profitability Analysis (COPA) and Internal Order (10). > Sales & Distribution (SD): SD is predominantly controls sales and it is also heavily tied up with MM. It controls customer master data, sales, plants. sales organizations and sales conditions. > Human Resource (ER): HR module handles all knman resource activities such as resource hiring, salary, employee benefits ete. It is highly integrated with FI and CO modules. v SAP PP (Production Planning): Production Planning is the process of aligning demand with manufacturing capacity to create production and procurement scbedules for finished products and component materials. SAP PP is an important ‘Scanned with CamSeannermodule of SAP. It racks and makes a record of the manufacturing process flows, for example, the planned and actual costs. Also. goods movements from the conversion of raw material to semi-finished goods. It is fully integrated with the other SAP modules: SD, MM. QM. and FICO & PM. 5 Material Management (MM): Materials Management module in SAP consists of several components and sub-components. The most prominent and widely used are Master Data, Purchasing and Inventory. ‘Scanned with CamSeannerOrganizational Units in SAP FI Organizational units in SAP are the functional units #2 eaterprise and are used in reporting. Important organizational units in SAP FI are v Fiscal Year Y Company Code ~ Business Area Company Company is defined as the smallest unit in which financial statements can be created in accordance with commercial legal regulations or it is a business organisation for which individval financial statements can be drawn according to the relevant ly commercial law. A company can consists of one or more company code. Company Code Iisa legal entity of financial accounting for which you draw individual financial statement (Balance sheet & P/L account) for the purpose of external statutory reporting. Business Area ‘Scanned with CamSeannerBasiness Area Business Areas are used to differentiate transactions that come from different lines of business in a company. The benefits of using Business Areas in this case are as follows — + You can use these business areas if other company codes require the same areas. ‘Scanned with CamSeanner* It is easy to configure if you use a Business Area, as you just need to attach to the company code and the other details in that business area will get attached automatically. * By using Business Areas in controlling, you can create Profit and Loss statement, Balance Sheet, etc. for business areas. Hence it is used for management accounting in a few companies. Chart of accounts It is defined at the client level and assigned to each company code. It is a list of general ledger account's master data that fall under different account group of a company code. This groping mechanism helps to develop better financial reports. Types of Chart of Accounts |. Operating chart of accounts 2. Group chart of accounts 3. Country chart of accounts > Operating chart of accounts ‘Scanned with CamSeanner3, Country chart of accouns > Operating chart of accounts in operating chart of accounts t daily expenses. The account ared by finance as well It is used to post revenue and the information is sh: could be either expense 0: as controlling modules. i. > Group chart of accounts It is used by the entire corporate group. They help in generating reports at the corporate. > Country specific chart of accounts Ithelps to meet country specific legal requirements. Define account group Account groups are used lo maintain i maintain intervals and scr een layout while defini ing or extending GL accounts master data at the company code level. It helj elps the ‘Scanned with CamSeanner> Country specific chart of accounts It helps to meet country specific legal requirements. Define account group Account groups are used to maintain intervals and screen layout while defining or extending GL accounts master data at the company code level. It helps the user to define required fields while creating GL account master data. Retained earnings ‘Scanned with CamSeannerRetained Earnings Account is used to carry forward the balance from one fiscal year to the nest fiscal year. You can assign a Retained Earning Account to each P&L account in the chart of accounts (COA). To automatically carry forward the balance to the next fiscal year, you can define P&L statements as per COA and assign them to the retained earning accounts. Fiscal year variant In SAP the fiscal year is assigned as a variant. Posting periods can further be defined in each fiscal year variant. SAP allows a maximum of 16 posting periods in each fiscal year. It consists of 12 regular posting periods and 4 special periods which can be used for audit or tax adjustments to already closed periods. One fiscal year variant can be assigned to multiple company code. Year dependent F.Y: The start date and end date is different year to ‘Seanad wth CamScanner: The start date and end date are same. Year independent F. Shortend F.Y: This fiscal year has fewer normal periods. A shortend EY is always year dependent. Number ranges for Document types j, Document number ranges are defined at the specific interval within which documents should be created in SAP and document number ranges depend upon company code and valid for the defined year. We can assign one or more document types to each number range. The number range becomes effective by the document type specified in document entry and posting. Document type controls the document header. It is used to differentiate the business transactions to be posted, for example, customer invoice, vendor payments, etc. Document types are defined at the client level and are valid for all company codes. ‘Scanned with CamSeannesSome of the document ranges are: SA - General Ledgers DA - Customer DG - Customer credit memo DR - Customer invoice DZ - Customer payment KA- Vendor KG- Vendor debit memo KR - Vendor invoice KZ - Vendor payment, Tolerance Group rete search 4g ‘Scanned with CamSeannetIn real time business scenario, tolerance group allows the SAP system to process and post the transactions beyond the tolerance groups limits. Tolerances are referred as payment differences. It can be an amount tolerance, % debit and credit tolerance. » For general ledger > For employees > For customer and vendors Once you created tolerance group for customers then you need not create it for vendors. Field status variant; b It is used to define the field which are used for input like cost center, profit center, plant, etc., which are entry field, and hidden field. Field status variant is a tool which is provided by SAP to assign the same set of properties to more than one object. Accounts Receivable Accounts Receivable is a sub module of SAP FI used to manage and record Accounting data for all the customers. It handles customer invoices, approvals, payments and other allied Scanned ih Cancer«¢ made in Accounts Receivable are updated in General Ledger G/L as ivable sub modale has tons of reports and payments. The chief processes covered in the sub-module are activities. Any posting: well The Accounts Rece and forecasting to features to track vendor outstanding Maintain Master Data + Credit Management Invoice Processing Cash Receipts and Payments ‘Accounts Analysis and Reconciliation + Reports Accounts Payable Accounts Payable is a sub module of SAP FI used to manage and r d 2 ecor Accounting data for all the vendors. It handles vendor invoices, approv Ss Accounting data for all als, payments and anc ‘Scanned with CamSeannerAccounts Payable Accounts Payable is a sub module of SAP FI used to manage and record Accounting data for all the vendors. It handles vendor invoices, approvals, payments and other allied activities. Any posting made in Accounts Payable is updated in General Ledger as well. The Accounts Payable sub module has tons of reports and forecasting to features to track vendor outstanding and payments. The chief processes covered in the sub-module are . Maintain Vendor Master Data . Invoice Handling 7 Payments ° ‘Account Analysis of Reconciliation - Reports Dunning Process In SAP FT, Dunning plays a vital role in Accounts receivables. Dunning is similar to Scanned th CamseamerDunning Process In SAP FI, Dunning plays a vital role in Accounts receivables. Dunning is similar to reminder notice to our business partners for their overdue/open items or outstanding balances. Dunning letter summarizes overdue invoices record and asks for payment to be made. We configure dunning program for accounts receivable and accounts payable. Dunning Program includes following configuration steps: = Dunning procedure, ‘Scanned with CamSeanner+ Dunning level, « Dunning Areas. Dunning procedure controls the path of dunning to the customer and vendor through the system. We can define our own dunning procedure as per our convenience. Transaction code: FBMP. Dunning level defies dunning text msximum nine dunning levels are avaiable. As the dunning level increases, text will also change as consistent to make payment. Dunning area means the client/company/company code in which we are working on dunning program. If we don’t want to run dunning program at company code level then we can also run dunning program at organizational level like, sales organization. Document Reversal ‘Scanned with CamSeannerYou can also reverse an incorrect document and can also clear the open items. A document can only be reversed if — + It contains no cleared items. + It contains only customer, vendor, and G/L account items. + Ttwas posted with Financial Accounting. + Allentered values (such as business area, cost center, and tax code) are still valid. Defining House Bank Each house bank of a company code is represented by a bank ID. Every account at a house bank is represented by an account ID. In the SAP system, you use the bank ID and the account ID to specify bank details. Bank ID and account ID are used, for example, for automatic payment transactions to determine the bank details for payment. To create a house bank, you use this transaction. To create the house bank décounts, you use an SAP Net Weaver Business Client application. The account [Ds are generated in the process. For more information. see Bank Account Management. ‘Scanned with CamSeannerThe house banks of your company are the banks that your company has an account ‘with. You can use them to process payment transactions. In the SAP system, house banks have the following characteristics: «They are assigned to company codes. * Each company code can have multiple house banks. Automatic Payment Program Automatic Payment Program (APP) serves the purpose of posting accounts payable like payment to a vendor based on vendor invoices automatically. APP is used to find out due/overdue invoices and to process a list of customer and vendor invoices to make payments in one go. APP cannot be used for all company codes from different countries. APP has the following categories — * Setup all company codes = Setup paying company codes = Payment method per country «Payment method per country code * Bank Selection * House Bank ‘Scanned with CamSeanner» House Bank Controlling Area; SAP Controlling is a function which provides you with informations for company management and decision making. SAP Controlling facilitates coordination. monitoring and optimization of all process in an organization. Asset Accounting; The Asset Accounting (FI-AA) component is used for managing and supervising fixed assets with the SAP System. In Financial Accounting, it serves as a subsidiary ledger to the General Ledger, providing detailed information on transactions involving fixed assets ‘Scanned with CamSeanner