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SAP
Introduction
SAP :- System Application Products in data processing
Language :- ABAP
Programmed Application Business Software
SAP SAP
In 1972 SAP R/1 application invented by 5 Ex-IBM employs.
1979 --- SAP R/2 invented
1992 --- SAP R/3 invented
1 -- One Tier Architecture
2 -- Two Tier Architecture
3 Three Tier Architecture
P :- Presentation Layer
A :- Application
D :- Databasic Layer
P + A + D
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One Tire --
Two Tire -- P + A + D
Three Tire -- P + A + D
There are several versions in SAP R/3 (1992)
Version -- 1.0
2.0
3.0
4.0
4.6B
4.7C
2000s ECC :- Enterprises Central Component
EHP :- Enhancement Packages
ECC 5.0
ECC 6.0
ECC 6.0 Ehp 1
Ehp 2
Ehp 3
Ehp 4
Ehp 5
Ehp 6
Presently we are using : ECC 6.0 EHP 6
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There are basically 3 Modules in SAP
1. Technical
a. ABAP
b. BASIS
c. BI/BS
2. Functional
a. MM :- Material Management
b. PP:- Production Planning
c. SD:- Sales & Distribution
d. FICO:- Finance & Controlling
e. QM:- Quality Management
f. Etc(40+ module)
3. Industry Specific ( IS )
a. Retail
b. Oil & Gas
c. Real Estate
SAP R/3 ECC EHP 6 SAP having 2 services
L1:- Training Server IDES Server (International Demonstration Education System)
L2:- Real Time Server HP, IBM, Delloite
SAP Headquarters in Germany (Walderle)
130+ countries having branches
1. SAP Bangalore
2. SAP Chatisghar
3. SAP Gurgaom
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SAP Advantages:
1. SAP is business software package
2. SAP ERP product
3. SAP integrate all the module across the countries
4. Transparency in the system
5. Multi languages support ( 40+ languages)
6. Multi currency support ( 150+ currency)
SAP Disadvantage:
1. Expensive
ERP - Enterprise Resource Planning
Firm Company Planning
Material
Money
Man Power
Machine
How best user business plan all the resources is called planning
Difference between ERP & NON ERP
ERP NON-ERP
1. It has centralized data base 1. Decentralized data base system
system 2. NON ERP having dissatisfaction
2. ERP having customer Satisfaction
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TOP ERP products in the world
1. SAP 78% ( SAP integrates all the modules )
2. Oracle Master in finance 15%
3. JD Edwords Master in procurement
4. Baan Production
5. Sale Force Sale
6. People Soft HR
Transparency in system:
ERP wise SAP is the first
System wise
a) Google
b) Microsoft
c) SAP
Implementation Project
Support Project
Roll Out Project
Up-gradation Project
SAP having 2 License:
Project License
a) Wipro
b) IBM
c) Infosys
d) TCS
e) Capgemini
Education License
SAP
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Collides Nandini Milks
Power User PM (Project Manager)
Core User MM SD PP FICO
(HOD) Manager
End User Supervisor
*******************************************************************************************
Infosys
Technical Lead PM Project Manager
MM SD PP FICO
Sr. Consultant (5-8 years)
Consultant (3-5 years)
Jr. Consultant / Associate (0-3 years)
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SAP MM-Business Cycle
Customer
FICO Cash Retable Sale person
Cash Payable Material Management
Vender Production Planning
Final Production
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Enterprise Structure in SAP & NON SAP
NON SAP Enterprise System
TATA GROUP
Tata Motors Tata Enterprise
BLR HYD
White Field Electronic City Banjarahills Hifi City
*******************************************************************************************
SAP Enterprise System
CLIENT
COMPANY
CO-CODE CO-CODE
PLANT - BRL PLANT - HYD
WHITE FIELD BANJARAHILLS
STORAGE LOCATION STORAGE LOCATION
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Consultant works
BASIS CLIENT - 800 BASIS Training client code
COMPANY - (1-6) alpha/ num
FI
COMPANY CODE ( 1-4) alpha /num
CO
CONTROLLING AREA = COMPANY CODE (1-4)
PLANT (1-4) alpha / num
MM STORAGE LOCATION (1-4) alpha / num
PUCHASE ORG. (1-4) alpha / num
SALE ORGANIZATION (1-4) alpha&num
SD
DIVISION & DISTRIBUTION CHANNEL (1-2) apha&num
HR
HR
PP PRDUCTION DEPARTMENT
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SAP GUI
GUI :- Graphical User Interface
Menu
Comment Bar Standard Tool Bar
Title Bar
Application Tool Bar
Status Bar
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Presentation Layer:
USER
WORK
HERE
Figure 1 Presentation Layer
Application Layer:
Consultant
Work here
Figure 2 Application Layer
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Databases Layer:
Figure 3 Databases Layer
(Note:- Max. user can work on 6 number easy access servers.)
/o :- Is using to creating a new session
/n :- Is using to exit from current screen
/nex :- Is using to exit from GUI
D Basis Di Database
A consultant Ai Application
P User P Presentation
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SAP MM -ENTERPRISE STRUCTURE
1. Enterprise structure is a part of configuration setting.
2. Enterprise structure creation by consultant.
3. Enterprise structure is being created in application layer.
Enterprise Structure
CLIENT
COMPANY
CO-CODE CO-CODE
PLANT - BRL PLANT - HYD
WHITE FIELD
BANJARAHILLS
STORAGE LOCATION STORAGE LOCATION
Enterprise structure: Is where you will specify your organization structure for
your business in the R/3 system.
The definition of organization unit is a fundamental step in any project. It is a
critical factor in how the project will be structured.
Definition: Organization chart or Enterprise structure shall be defined ad per
specific business requirement.
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Client: BASIS
A client has the following attributes:
Client is a commercial organizational unit in R/3 system.
It has its own set of master data with independent table sets.
According to hierarchy, a client occupies the highest level in a SAP system.
Data that is maintained at the client level is valid for all organizational levels.
Company: FICO
consultant.
Controlling Area: Controlling area code having 4 digits alpha &numerical by
CO
Company Code (Co-code): company cod having 4 digits alpha &
FICO consultant.
A company code has the following attributes:
Within client, a company code is an independent accounting unit.
It is a legal entity that has its own profit, loss and balance statement.
It is the smallest unit in an organization for which a complete independent
account set can be replicated.
Plant: Plant, storage location, purchase organization is having 4 digits alpha
MM
The basic points to be noted about a plant are as follows:
Plant is an organizational unit within a company where activities take place. A
plant will produce goods and make goods available for the company.
It is a unit having manufacturing facility, warehouse distribution center, or a
regional sales office within logistic. It subdivides an enterprise in different
aspects.
Storage Location:
A storage location has the following attributes:
Storage location is an organizational unit, which actually differentiates between
different material stocks in a plant.
Storage location is a place where stock is kept physically.
A plant can consist of multiple storage locations. All data is stored at storage
location level for a particular storage location.
Sale Organization: Sale organization, Shipping is having 4 digits alpha &
SD
Distribution channel & Division: Distribution channel & Division is having 2 digits
SD
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Purchasing Organization
The points to be noted about a Purchasing Organization are as follows:
A purchasing organization is an organizational unit under a company or a plant
that is responsible for the procurement activities according to requirements. It is
responsible for external procurement.
A purchasing organization can be at the client level, which is known as a
centralized purchasing organization.
A purchasing organization can also be at the company or plant level, which is
known as company-specific or plant-specific purchasing organization.
Different forms of purchasing can be described as follows:
Centralized Purchasing
Purchasing organization is not assigned to any company code. It procures for all
company codes belonging to different client.
Company-Specific Purchasing
Purchasing organization is assigned to a company code only. The plant belonging to the
company code can purchase through this purchasing organization.
Plant-Specific Purchasing
Purchasing organization is assigned to a plant. Only this specific plant can purchase
through this purchasing organization.
Purchasing Group
The attributes of a purchasing group are as follows:
Purchasing group is an organizational unit responsible for the everyday
procurement activities within an organization.
It is a buyer or a group of buyers responsible for the procurement activities in a
purchasing organization.
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SPRO: SAP Project Reference Object.
SPRO PATH: SAP Menu => Tools => Customizing => IMG => SPRO Execute
Project
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T-CODE
SAP IMG
After SPRO, on the next screen, click on SAP Reference IMG.
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The next screen will appear as follows. This is the final screen from where we can do
configurations.
Application Layer: - consultant work here
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Menu path for MM Configuration
The main menu paths for MM area are as follows:
SAP Customizing Implementation Guide (IMG) => Enterprise Structure =>
Definition (Creating Company).
Define Company T.Code = OX15
Company code T.Code = OX02
Controlling area T.Code = OX06
Plant T.Code = OX10
Storage Location T.Code = OX09
Purchase Org. T.Code = OX08
SAP Customizing Implementation Guide (IMG) => Enterprise Structure =>
Assignment (Assign company code).
Assign Company code to Company T.Code = OX16
Assign Company code to controlling area T.Code = OX19
Assign Plant to Company code T.code = OX18
Purchase Org. to Company code T.code = OX01
Purchase Org. to Plant T.code = OX17
Check Enterprise Structure:
T.CODE = EC01:- Display Enterprise Structure at Company-Code level.
T.CODE = EC02:- Display Enterprise Structure at Plant level.
T.CODE = OBY6:- Company-Code Global Data Overview.
T.CODE = OMSY:- Materials Management view on Company-Code (Change Year)
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Define Company
In this step you can create companies. A company is an organizational unit in
accounting which represents a business organization according to the
requirements of commercial law in a particular country.
Path:- SPRO => IMG => Enterprise Structure => Definition => Financial
Accounting => Define Company.
T.CODE:- OX15
Step1: Click on Clock icon =>
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Company:- Company is the topmost organizational unit after client, which incorporates
individual financial accounting statements of several company codes. A company can have
many company codes. In SAP, it is optional to create a company. The following steps will
take you through the procedure of creating company.
Step2: click the New Entries.
Step3: Fill in all the necessary details such as name of the company, address of the
Company with street number, city, country, and postal code.
Click the Save icon after filling the required information. (Ctrl+s).
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Create Company Code
In this activity you create your company codes. The company code is an
organizational unit used in accounting. It is used to structure the business
organization from a financial accounting perspective.
(We recommend that you copy a company code from an existing company
code. This has the advantage that you also copy the existing company code-
specific parameters. If necessary, you can then change certain data in the
relevant application. This is much less time-consuming than creating a new
company code. See "Recommendations" for more details about copying a
company code.)
Path: SPRO => IMG => Enterprise Structure=> Definition=> Financial Accounting=> Edit,
Copy, Delete, check company code.
T.CODE: OX02
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Step 1: Click on Clock icon:
Step2: Click on => copy, delete, check company code
Step 3: Click on copy icon: (Press F6)
Copy from existing company code to NEW Company code
Step 4: enter existing company code to company code.
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Step 5: After copy company code then click on => Edit Company code data.
Step 6: Click on New Entries.
Step 7: Fill in all the necessary details like Company code, company name along with
city, country, currency, language.
Step 8: Save (Ctrl + S).
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Controlling Area
The controlling area is an organizational unit in Accounting used to subdivide the
business organization from a cost accounting standpoint.
Path: SPRO => IMG => Enterprise Structure => Definition => Controlling => Maintain
Controlling Area.
T.Code: OX06
Step 1: Click on Clock icon.
Step 2: Click on New Entries to create controlling area.
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Step 3: Click on => CoArea =CoCode .
Step 4: Enter you Company code. And press enter.
Step 5: Assignment => controlling area = company code
Step 6: Save (Ctrl + S).
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Create Plant
A Plant is an organizational unit within a company where activities take place. A plant will
produce goods and make goods available for the company. The following steps will take you
through the procedure of creating a plant:
Path: SPRO=>IMG => Enterprise Structure=> Definition=> Logistic General=>Define,
Copy, Delete, check plant.
TCode: OX10
Step 1: Click on => Define Plant
Step 2: Click on NEW ENTRIES.
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Step 3: Fill in all necessary details like plant name along with detailed information
likeLanguage, House no., city, country, region, postal code. (Factory Calendar = W8).
Step 4: Ctrl +S: - Fill all details
Step 5: Click the Save icon after filling the required information. A new plant will be
created.
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Create Storage Location
A storage location is the place where stock is physically kept within a plant.
A storage location has the following attributes:
There may be one or more storage locations within a plant.
A storage location has a description and at least one address.
It is possible to store material data specific to a storage location.
Stocks are managed only on a quantity basis and not on a value basis at
storage location level.
Physical inventories are carried out at storage location level.
A storage location can be assigned to a warehouse number in the Warehouse
Management System. You can assign more than one storage location to the
same warehouse number within a plant.
Storage locations are always created for a plant.
Path: SPRO =>IMG => Enterprise Structure => Definition => Materials Management =>
Maintain Storage Location
T.Code: OX09
Step 1: Enter the name of the plant for which you want to create the storage location.
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Step 2: Click the New Entries icon.
Step 3: Enter the name of the storage location along with its description. Click the Save icon
after filling the required information. A new Storage Location will be created.
Step 4: Save it (Ctrl +S).
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Create Purchasing Organization
From the Materials Management and Purchasing view, the purchasing organization is responsible
for all purchasing activities (including the processing of requests for quotations and purchase
orders, for example).
The purchasing organization is integrated within the organizational structure as follows:
A purchasing organization can be assigned to several company codes. (= Corporate-
group-wide purchasing).
A purchasing organization can be assigned to one company code. (= Company-specific
purchasing).
A purchasing organization can also exist without being assigned to a company code.
1. Since each plant must be assigned to a company code, the latter can be
determined via the plant at the time of each procurement transaction even if
the procuring purchasing organization has not been assigned to a company
code.
A purchasing organization must be assigned to one or more plants. (= Plant-specific
purchasing).
A purchasing organization can be linked to one or more other purchasing organizations.
(= reference purchasing organization) For more on this topic, refer to Assign Purchasing
Organization to Reference Purchasing Organization.
A purchasing organization can be divided into several purchasing groups that are
responsible for different operational areas.
Each purchasing organization has its own info records and conditions for pricing.
Each purchasing organization has its own vendor master data.
Each purchasing organization evaluates its own vendors using MM Vendor Evaluation.
Authorizations for processing purchasing transactions can be assigned to each
purchasing organization.
All items of an external purchasing document, that is, request for quotation, purchase
order, contract, or scheduling agreement, belong to a purchasing organization.
The purchasing organization is the highest level of aggregation (after the organizational
unit "client") for purchasing statistics.
The purchasing organization serves as the selection criterion for lists of all purchasing
documents.
Path: SPRO =>IMG => Enterprise Structure=> Definition=> Materials Management=>
Maintain Purchasing Organization
T.Code: OX08
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Step 1: Click the New Entries icon.
Step 2: Enter the name of the purchasing group along with its description.
Step 3: Click the Save icon after filling the required information. A new Purchasing
Organization will be created.
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Assign Company Code to Company
In this step you assign the company code which you have to include in the group accounting to a
company.
Path: SPRO =>IMG => Enterprise Structure=> Assignment => Financial accounting
=>Assign Company Code to Company.
T.Code = OX16
Step 1: Click on Position.
Step 2: Enter you Company code
Step 3: Enter you company and save it.
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Assign Company Code to Controlling Area.
In this step you assign the company codes for which you want to carry out common cost controlling to a
controlling area.
Path: SPRO =>IMG => Enterprise Structure=> Assignment => Controlling =>Assign
Company Code to Controlling Area.
T.Code = OX19
Step 1: Click on position.
Step 2: Enter controlling area code. (Co.ar = Coco)
Step 3: Select your Controlling area code.
Step 4: Select Assignment of company code(s). (Double click for open)
Step 5: Enter Controlling code and Save it.
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Assign Company Code to Plant.
In the IMG activity "Assignment Plant - Company Code" you assign each plant to a company code.
Path: SPRO =>IMG => Enterprise Structure=> Assignment => Logistics-General =>Assign
Plant to Company Code.
T.Code = OX18
Step 1: Click on New Entries.
Enter company code and plant . Then Save it.
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Assign Purchasing organization to Company Code.
In this Implementation Guide (IMG) activity, you assign purchasing organizations to company codes.
Path: SPRO =>IMG => Enterprise Structure=> Assignment => Materials Management
=>Assign Purchasing Organization to Company Code.
T.Code = OX01
Step 1: Click on Position.
Step 2: Enter your Purchasing Org. code.
Step 3: Enter Company code and save it.
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Assign Purchasing organization to Plant.
In this IMG activity, you assign purchasing organizations to the plants for which they are responsible.
Path: SPRO =>IMG => Enterprise Structure=> Assignment => Materials Management
=>Assign Purchasing Organization to Plant.
T.Code = OX17
Step 1: Click on New Entries.
Step 2: Fill all entries and Save it.
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Display Enterprise Structure at Company Code Level.
T.Code = EC01
Step 1: Click on Structure. Then Click on Navigation.
Step 2: press Enter.
Step 3: Click on Find icon (Ctrl+F). And Enter Company Code.
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Step 4: Double Click on your Company Code.
Display Enterprise Structure at Plant Level.
T.Code = EC02
Same as EC01. At plant level.
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Display Company Code at Global Level.
T.Code = OBY6
Note:- Change Year setting before Master Data Creating.
T.Code = OMSY
