PROJECT OASIS

Lets Simplify

SAP Overview
28th June 2011

2008 Tata Communications, Ltd. All Rights Reserved

Roadmap
Why SAP SAP R/3 Solution Overview of SAP ERP Architecture of SAP System Landscape at TATA Communications SAP Basic Terminology How to start the SAP System How to create the shortcut of transaction code. SAP Icons Used. Navigation to access the transaction code. Organization structure & definition. Introduction to Material management in SAP Common SAP MM transaction codes.

Masters in SAP MM with example.

1 CORPORATE

Why SAP?
Major ERP solutions available today: SAP (Systems Applications & Products in Data processing) Oracle J.D Edwards PeopleSoft Siebel Systems Microsoft dynamics SAP is the leading Enterprise Information and Management Package worldwide with Market capitalization of more than 65% in the ERP space.

With around 75,000 customers in over 120 countries and a market share of 60 billion dollars they stand out from the pack.
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An overview of ERP & SAP

ERP Enterprise resource planning An Enterprise resource planning software attempts to integrate all departments and functions across a company onto a single computer system

The R/3 Solution

SD
Sales & Distribution

FI
Financial Accounting

MM
PP SM
Materials Mgmt.

CO
Controlling

Production Planning

AM

Service Management QM Quality Management PM Plant Maintenance

R/3
India Version

Fixed Assets Mgmt.

EC

Client / Server ABAP/4

PS

Enterprise Controlling

Project System

WF
Workflow

HR

Human Resources

SAP Overview Definition / History / Versions

SAP (Systems, Applications and Products in Data Processing), having headquartered in Walldorf, Germany. Its a software designed to help companies execute and optimize business and IT strategies. SAP defines business software as comprising enterprise resource planning (ERP) and related applications such as supply chain management (SCM), customer relationship management (CRM), product lifecycle management, and supplier relationship management (SRM) In 1972, SAP was founded by 5 former IBM employees in Mannheim, Germany.

SAP Overview Definition / History / Versions

The very 1st version which came into market was the "R/1 system. Where R stands for realtime data processing Later Stage R/1 evolved into SAP R/2. The programming language ABAP (Advanced Business Application Programming) was a derivative of R/2. By the 1990s, SAP R/3 was introduced to the market. ABAP was an important foundation of the system as it was used to develop the R/3 platform. SAP R/3 was officially launched on 6 July 1992. It was renamed SAP ERP and later again renamed ECC (ERP Central Component).

SAP Overview Definition / History / Versions

SAP ECC 5.0 ERP is the successor of SAP R/3 4.70. The newest version of the suite is SAP ECC 6.0 the path to SAP Business Suite 7. There are different versions in SAP like 3.0, 3.6,4.0.4.6, 4.6c,4,7, 5.0,6.0 R/3 stands for real-time three tier architecture. This is the kind of architecture SAP R/3 system has. R/3 means three layers are installed in Different system/server and they are connected with each other. 1) Presentation 2) Application 3) Database

SAP Overview Definition / History / Versions

Operating System:Windows, UNIX, Linux Data Base: Oracle & SQL Server

SAP Landscape
Landscape is like a server system or like a layout of the servers or some may even call it the architecture of the servers viz. SAP is divided into three different landscapes DEV, QAS and PROD. - DEV would have multiple clients. ex: Sandbox, Golden, Unit Test. - QAS may again have multiple clients. ex: Integration Test, Training. - PROD having only one client. Whatever you do in the Sandbox doesn't affect the other servers or clients. Whenever you think you are satisfied with your configuration and you think you can use it moving forward, you RE-DO it in the golden client (remember, this is a very neat and clean client and you cannot use it for rough usage).

SAP Landscape
Any transaction should not run or even use the SAP Easy Access screen on the 100 (golden) client. This is a configuration only client. Use a successful transport by the Basis guy, you have all the configuration in the Testing client, just as it is in the Golden client. The configuration remains in sync between these two clients. In summary: Landscape: is the arrangement for the servers DEVELOPMENT ---> QUALITY ----> PRODUCTION DEVELOPMENT: is where the consultants do the customization as per the company's requirement. QUALITY: is where the core team members and other members test the customization. PRODUCTION: is where the live data of the company is recorded. A request will flow from DEV->QAS->PRD and not backwards.

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Tata Communications - SAP Landscape

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Basic SAP Terminology

Environment: A completely self-contained version of the SAP database, designated for a specific purpose. A Production environment contains live, real-time data while a non-production environment such as the practice environment holds valid, but not real-time data, and is be used for learning examples. Separate environments do not exchange information. If you enter data into one environment, you will not be able to see that information in another environment GUI: Graphical User Interface. The SAP GUI is the software on your computer or local server that allows you to connect to one or more of the SAP environments.

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Basic SAP Terminology

Master Data: Master data is a collection of information about a person or an object, e.g. a cost object, vendor, or G/L account. For example, a vendor master record contains not only general information such as the vendors name and address, but also specific information, such as payment terms and delivery instructions. Generally for end users, master data is reference data that you will look up and use, but not create or change. Material Group: Material Groups are codes that classify goods and services by commodity or service type and are used by the Procurement Office for reporting purposes. For example, desks belong to the material group 1920 Furniture and Furnishings.

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Basic SAP Terminology

User Profile: The collection of authorizations a user or set of users has been granted in order to perform transactions related to their jobs. For example, someone designated as a requester might only have the ability to create and change, but not approve, requisitions. Transaction Code: A unique command that tells the location of a system task. A transaction code may contain letters only or a combination of letters and numbers. For example, the transaction code for Display Purchase Requisition is ME53.

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Basic SAP Terminology

Cost Object: A Cost Object collects expenses and revenues for a particular purpose, such as a research project. In SAP there are three types of cost objects: Cost Center, Internal Order, and WBS (Work Breakdown Structure) Element (see below for definition). Cost Center: General or operating Cost Objects are known in SAP as Cost Centers. Cost Centers are budgeted on the fiscal year. Internal Order: A non-sponsored Cost Object (for example, funding from the MIT Provost) used to track costs over periods other than fiscal years. Internal Orders are often created to track gifts or endowments at MIT.

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Basic SAP Terminology

WBS Element: WBS Elements are funded by outside sponsors and are used to track costs of a particular research project over the entire span of its activity. They may also be created to track other sponsored activities, such as gifts. G/L Account: G/L accounts are also called Cost Elements in SAP. They are a classification by expense or revenue type. In the CO (Controlling) module of SAP, the term Cost Element is used. In the FI (Financial) module, the term G/L Account is used. These terms are used interchangeably for reporting, requisitions, and journal vouchers.

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Modules in SAP

FI Financial Accounting-designed for automated management and external reporting of general ledger, accounts receivable, accounts payable and other sub-ledger accounts with a user defined chart of accounts. As entries are made relating to sales production and payments journal entries are automatically posted. This connection means that the "books" are designed to reflect the real situation. CO Controlling-represents the company's flow of cost and revenue . It is a management instrument for organizational decisions. It too is automatically updated as events occur.

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Modules in SAP

Contd

AM Asset Management-designed to manage and supervise individual aspects of fixed assets including purchase and sale of assets, depreciation and investment management.

PS Project System-is designed to support the planning, control and monitoring of long-term, highly complex projects with defined goals. HR Human Resources--is a complete integrated system for supporting the planning and control of personnel activities. PM Plant Maintenance--In a complex manufacturing process maintenance means more than sweeping the floors. Equipment must be services and rebuilt. These tasks affect the production plans. MM Materials Management--supports the procurement and inventory functions occurring in day-today business operations such as purchasing, inventory management, reorder point processing, etc.

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Planned Requirement

PP
Customer Order

MM
MRP Purchase Requisition

SD

Planned Order

Shipping

Purchase Order

Production Order

Invoicing

Goods Receipt Production completed

Account Receivable

FI

Invoice Verification Order Settlement Accounts Payable

FI CO
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How to start the SAP System

Step 1 - Double click on SAP GUI Login Icon

Step 2 - Double click on Production Server

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How to start the SAP System

Step 3 - Enter Client (300), User Name & Password

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How to start the SAP System

Step 4 SAP Main Screen will appear

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How to create the shortcut of Transaction Code For example you would like to create the shortcut of transaction code ME51N in your desktop Step 1 Enter T code in command window and press enter

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How to create the shortcut of Transaction Code Step 2 Click on shortcut button

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How to create the shortcut of Transaction Code Step 3 - Select Location click on Next and Finish Button

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How to create the shortcut of Transaction Code Step 4 Click on the OK Icon

Step 5 Shortcut Icon is created on the desktop

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SAP Icons-

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SAP Icons-

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SAP Icons-

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Navigation through Menu Material Master

Example shown below MM01, MM02, MM03 Create, Change, Display Material Master

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Navigation through Menu Purchase Requisition

Example shown below ME51N, ME52N, ME53N Create, Change, Display Purchase Requisition.

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Navigation through Menu Service Master & Service Entry

Example shown below ML81N, ML85,ML83,AC03.

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Navigation through Menu Vendor Master

Example shown below XK01, XK02,XK03

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Defining Favourites in SAP Main Screen

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Defining Favourites in SAP Main Screen

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Use of Transaction Code SU53 in SAP

SU53 transaction helps to analyze the authorization error occurs while access the system.

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Error / Warning / Information Messages in SAP System

Error Messages (E) These messages will appear in SAP system with RED Indicator. You cannot proceed or save your transaction without rectifying the error.. Warning Messages (W)

These messages will appear in SAP system with YELLOW indicator. It will allow to post the transaction.
Information Messages (I)

These messages will appear in SAP system during check or else if all the data maintained by user is correct.

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PROJECT OASIS

Lets Simplify

SAP Materials Management

28th June 2011

2008 Tata Communications, Ltd. All Rights Reserved

Commonly SAP MM Transaction Codes Sr. No

1 2 3 4 5 6 7 8 9 10 11 12 13

T code
MM01 MM02 MM03 ME51N ME52N ME53N ME54N ME55 ME21N ME22N ME23N ME29N ME28

Description
Create Material Master Change material Master Display Material Master Purchase Requisition Creation Change Purchase Requisition Display Purchase Requisition Release Purchase Requisition Collective PR Release Purchase Order Creation Change Purchase Order Display Purchase Order Release Purchase Order Collective PO Release

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Commonly SAP MM Transaction Codes 14 15 16 ML81N ML85 ML83 Service Entry Sheet Creation Collective Release Service Service entry sheet Print

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18 19 20 21 22 23 24 25 26

AC03
AC05 MIGO MIRO MIR7 MB52 MB5T MBBS XK01 XK02

Service Master creation

List of service master GRN/GI/Tr pso/Can Enter incoming Invoice Invoice Parking Stock Display Stock in Transit WBS Element wise stock Vendor Master Creation Change Vendor Master

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Commonly SAP MM Transaction Codes 27 28 29 30 31 32 33 34 35 36 37 38 39 XK03 MKVZ XK05 MK05 FK05 ME5A ME2L ME2N ME2K ME2M MIGO MBSM MB5B Display Vendor Master Report Vendor Master Block Vendor(centrally) Block Vendor( Pur Org) Block Vendor (Com Code) PR Report PO Report PO Report A/c Assignment wise PO Open PO(Select parameters) GRN Cancellation Report Cancel GRN Report Consumption(Op, Issue, Consumption.
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Commonly SAP MM Transaction Codes 40 41 42 43 44 45 46 47 48 49 50 51 MB02 MB03 MIR4 MB5S MR8M MIR5 ML84 IQ02 IQ09/ZIQ09 MB51 MB5L MCBE GRN Display GRN Display Display Invoice Pending Invoice against GRN Cancel Invoice Report vendor Invoice Report Service Entry Sr. No history Sr. No wise Material Stock Report Material document list List of Stock Value as per GL, Valuation type, Valuation Class List of materials as per M type, m group, Valuation Class

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Commonly SAP MM Transaction Codes 52 53 54 55 56 57 58 59 60 61 62 MBBS MCBC MM60 FK08 MRBR MEAN ME00 MB00 MM00 MC00 SAP1 Total stock value (Valuation type, class and material wise Total stock value (Valuation type, class and material wise Material list Vendor Release Release Blocked invoice Delivery address of plant Purchasing related T codes Material document related T codes Material master related T codes MM Related all std reports SAP std Reports in all modules

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Organization Structure in SAP

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Definition - Organization Structure

Client: Client is highest organizational level in Hierarchy. The Client is a Commercial, Organizational unit within the R/3 System, with its own data, Master Records and Set of tables. Company code: Company code is the smallest unit in organization structure. This level represents an independent accounting unit within a client. Balance sheet and Profit & Loss statements, required by law, are created at company code level. You can set up several company codes in one clients level.

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Definition - Organization Structure

Plant: Plant can be a manufacturing plant in the true sense, or can represent a branch office or site within a company code. A plant is an organizational logistic unit that structures the enterprise from the perspective of production, procurement, plant maintenance and material planning. In SAP system, a plant must be assigned to one or more purchasing organizations. Furthermore, a plant must always be assigned to a company code. Storage Location: The storage location is an organizational unit that allows the differentiation of material stocks with in a plant. Physical inventory is carried out at storage location level.
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Definition - Organization Structure

Purchasing organization:

Purchasing organization is an organizational unit responsible for procuring materials and services for one or more plants and for negotiating prices and terms of delivery with vendors. The purchasing organization assumes legal responsibility for all external purchase transactions.
You can incorporate purchasing into the company structure by assigning purchasing organization to company code and plants. You can have a combination of centralized and decentralized organizations. Purchasing group: The purchasing organization is further subdivided into purchasing groups (buyer groups), which are responsible for day-to-day buying activities
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Tata Communications - Organization Structure in SAP

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Plant Specific Purchase

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Cross Plant Purchase

51

Cross Company Purchase

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Cross Company Purchase

53

Master Data in Procurement Process

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Material Master Data

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Material Master: Organization Level

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Material Key

57

Material Type

58

Industry Sector

59

Unit of Measure

60

Purchasing Data

61

Material Type

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Material Valuation Procedure

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Material Valuation Procedure

The price control indicator S results in the following: All inventory postings are carried out at the standard price Variances are posted to price difference accounts Variances are updated and stored in the moving average price for statistical purposes. In this way, the standard price can be manually adjusted if the variance between standard and moving average gets too large. If a material is assigned a standard price, the material is always valuated at this price. If goods movements or invoice receipts contain a price that differs from the standard price, the differences are posted to a price difference account. The variance is not taken into account in the valuation.

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Valuation of Goods Receipt

Example Posting at Standard Price (1)

Example Posting at Standard Price (2)

Example Posting at Standard Price (3)

Material Valuation Procedure

The price control indicator V results in the following: Goods receipts are posted at the goods receipt value The price in the material master is adjusted by the delivered price Price differences occur only in exceptional circumstances Manual price changes are usually unnecessary, but they are possible.

If a material is assigned a moving average price, the price is automatically adjusted in the material master record when price variances occur. If goods movements or invoice receipts are carried out with a price that differs from the moving average price, the differences are posted to the stock account. The moving average price and the value of the stock change.

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Example Posting at Moving Average Price (1)

Example Posting at Moving Average Price (2)

Example Posting at Moving Average Price (3)

Master Data Vendor Master

Master Data Purchasing Info Record

Thank you

2008 Tata Communications, Ltd. All Rights Reserved