Intro to SAP Enterprise Systems Configuration EGS 5622 Enterprise Systems Integration Fall, 2017

SAP ERP Introduction Enables a company to link it’s business processes ECC 6.0 January 2008 SAP ERP Introduction Enables a company to link it’s business processes Ties together disparate business functions (integrated business solution) Helps the organization run smoothly Real-time environment Scalable and flexible The real benefit of ERP is a single point of data entry. Linked everything that we were trying to teach students. Students finally understood why they had to take the classes they had to take. It put it all together. Nay sayers were saying only large enterprises only use SAP. If the students got hired in a large company they would be in a silo. The students who really benefited are the ones who worked in small companies because they understood the whole business process and their jobs have a broader range of duties. © SAP AG and The Rushmore Group, LLC 2008

SAP ERP Introduction Central relational database ECC 6.0 January 2008 SAP ERP Introduction Central relational database Oracle, Informix, Microsoft SQL, etc. Client/Server – three-tiered for database, application, and presentation. ERP Central Components (ECC)– Oriented towards common identifiable business modules: MM, SD, PP, FI, CO, HR, WM, PM Add-ons: Customer Relationship Mgmt (CRM) Supplier Relationship Mgmt (SRM) Supply Chain Mgmt (SCM) Product Lifecycle Mgmt (PLM) Multiple database options ERP components are standard business functions: FI (finance), MM (Materials Management), SD (Sales & Distribution), CO (Controlling), PP (Production Planning), HR (Human Resources) Many add-ons Add on focus on specific market niches or business functions. Two of the most popular are CRM and SCM © SAP AG and The Rushmore Group, LLC 2008

SAP ERP Central Component SAP Business Suite SAP NetWeaver SAP SCM SAP PLM SAP SRM SAP CRM SAP ERP Central Component (ECC)

ECC 6.0 January 2008 Relational Database Tables: Defines and links a couple of tens thousands of tables of information (40,000+) Advantages Consistent and accurate data Common definitions for terms Shared, but restricted usage (e.g., profiles) Eliminates data redundancy 3.0d had 7,000 tables 3.8 - 11,000 tables 4.6 - 18,000 tables If you know everything about SAP, your lying. It is just too big. Your profiles dictates what you can see. This is the only time you will have access to the complete system. You can do anything, including take the system down. Audit trail – You can tell which student took it down, and they will take care of it themselves. © SAP AG and The Rushmore Group, LLC 2008

Client/Server Environment ECC 6.0 January 2008 Client/Server Environment Server Software/hardware combination that can provide services to a group of clients in a controlled environment Client Software/hardware combination that can make a request from a SAP customer for services from a central repository of resources What is Client-server Computing? The short answer: Client/server is a computational architecture that involves client processes requesting service from server processes. The long answer: Client/server computing is the logical extension of modular programming. Modular programming has as its fundamental assumption that separation of a large piece of software into its constituent parts ("modules") creates the possibility for easier development and better maintainability. Client/server computing takes this a step farther by recognizing that those modules need not all be executed within the same memory space. With this architecture, the calling module becomes the "client" (that which requests a service), and the called module becomes the "server" (that which provides the service). The logical extension of this is to have clients and servers running on the appropriate hardware and software platforms for their functions. For example, database management system servers running on platforms specially designed and configured to perform queries, or file servers running on platforms with special elements for managing files. It is this latter perspective that has created the widely-believed myth that client/server has something to do with PCs or Unix machines. What is a Client process? The client is a process (program) that sends a message to a server process (program), requesting that the server perform a task (service). Client programs usually manage the user-interface portion of the application, validate data entered by the user, dispatch requests to server programs, and sometimes execute business logic. The client-based process is the front- end of the application that the user sees and interacts with. The client process contains solution-specific logic and provides the interface between the user and the rest of the application system. The client process also manages the local resources that the user interacts with such as the monitor, keyboard, workstation CPU and peripherals. One of the key elements of a client workstation is the graphical user interface (GUI). Normally a part of operating system i.e. the window manager detects user actions, manages the windows on the display and displays the data in the windows. What is a Server process? A server process (program) fulfills the client request by performing the task requested. Server programs generally receive requests from client programs, execute database retrieval and updates, manage data integrity and dispatch responses to client requests. Sometimes server programs execute common or complex business logic. The server-based process "may" run on another machine on the network. This server could be the host operating system or network file server; the server is then provided both file system services and application services. Or in some cases, another desktop machine provides the application services. The server process acts as a software engine that manages shared resources such as databases, printers, communication links, or high powered-processors. The server process performs the back-end tasks that are common to similar applications. © SAP AG and The Rushmore Group, LLC 2008

Three-Tier SAP Structure ECC 6.0 January 2008 Three-Tier SAP Structure GUI – Graphical User Interface or Web Interface Application server (one or many) Database server (one single location) World wide companies have redundant servers that back up real time. What is a Two-Tier Architecture? A two-tier architecture is where a client talks directly to a server, with no intervening server. It is typically used in small environments (less than 50 users). A common error in client/server development is to prototype an application in a small, two-tier environment, and then scale up by simply adding more users to the server. This approach will usually result in an ineffective system, as the server becomes overwhelmed. To properly scale to hundreds or thousands of users, it is usually necessary to move to a three-tier architecture. What is a Three-Tier Architecture? A three-tier architecture introduces a server (or an "agent") between the client and the server. The role of the agent is manyfold. It can provide translation services (as in adapting a legacy application on a mainframe to a client/server environment), metering services (as in acting as a transaction monitor to limit the number of simultaneous requests to a given server), or intelligent agent services (as in mapping a request to a number of different servers, collating the results, and returning a single response to the client. © SAP AG and The Rushmore Group, LLC 2008

SAP Enterprise System Network Presentation Application Database ECC 6.0 January 2008 SAP Enterprise System Database Application Presentation Browser Client PCs, Laptops, etc. Network Application Servers Internet Transaction Server Web Server 3-tier client server system Web server Internet transaction server Brings it to a single database across the world. What is Client-server Computing? The short answer: Client/server is a computational architecture that involves client processes requesting service from server processes. The long answer: Client/server computing is the logical extension of modular programming. Modular programming has as its fundamental assumption that separation of a large piece of software into its constituent parts ("modules") creates the possibility for easier development and better maintainability. Client/server computing takes this a step farther by recognizing that those modules need not all be executed within the same memory space. With this architecture, the calling module becomes the "client" (that which requests a service), and the called module becomes the "server" (that which provides the service). The logical extension of this is to have clients and servers running on the appropriate hardware and software platforms for their functions. For example, database management system servers running on platforms specially designed and configured to perform queries, or file servers running on platforms with special elements for managing files. It is this latter perspective that has created the widely-believed myth that client/server has something to do with PCs or Unix machines. What is a Client process? The client is a process (program) that sends a message to a server process (program), requesting that the server perform a task (service). Client programs usually manage the user-interface portion of the application, validate data entered by the user, dispatch requests to server programs, and sometimes execute business logic. The client-based process is the front- end of the application that the user sees and interacts with. The client process contains solution-specific logic and provides the interface between the user and the rest of the application system. The client process also manages the local resources that the user interacts with such as the monitor, keyboard, workstation CPU and peripherals. One of the key elements of a client workstation is the graphical user interface (GUI). Normally a part of operating system i.e. the window manager detects user actions, manages the windows on the display and displays the data in the windows. What is a Server process? A server process (program) fulfills the client request by performing the task requested. Server programs generally receive requests from client programs, execute database retrieval and updates, manage data integrity and dispatch responses to client requests. Sometimes server programs execute common or complex business logic. The server-based process "may" run on another machine on the network. This server could be the host operating system or network file server; the server is then provided both file system services and application services. Or in some cases, another desktop machine provides the application services. The server process acts as a software engine that manages shared resources such as databases, printers, communication links, or high powered-processors. The server process performs the back-end tasks that are common to similar applications. © SAP AG and The Rushmore Group, LLC 2008

Enterprise Systems (history & Evolution)

ECC 6.0 January 2008 SAP ERP Introduction Instance – each install of the SAP ERP software on an individual application server Configurable – each instance can be distinctively configured to fit the needs and desires of the customer (within limits) Most of the infrastructure decisions, including configuration decisions, occur during project implementation Configurable – Not a single line of code to set this up. Change options in configuration © SAP AG and The Rushmore Group, LLC 2008

ECC 6.0 January 2008 SAP Configuration The process of tailoring SAP software by selecting specific functionality from a list of those supported by the software, very much like setting defaults (e.g., Word, Access) DOES NOT involve changes to the underlying software code Very much like changing switches or setting defaults Configuring is what you do to have the system be able to execute your business processes the way you want them to. (e.g. If you deliver steel, you don’t want a Ferrari, you want a semi-truck. SAP can be either depending upon how you configure it.) Be careful with configuration. Once it is done, it is very difficult to undo. © SAP AG and The Rushmore Group, LLC 2008

Programming Code Modifications ECC 6.0 January 2008 Programming Code Modifications Changes to the delivered code ABAP/4 – Advanced Business Application Programming (ABAP) This should be done carefully as it can make migration to new versions of the software much more difficult If you change the code, SAP will no longer support you. You should FULLY research before you make the decision to modify. Gateway Computer: not able to up-grade with JDE because they made so many changes. They were stuck with a version of software over a decade old without the functionality they needed with the newest releases. © SAP AG and The Rushmore Group, LLC 2008

SAP Data Types Required data types: ECC 6.0 January 2008 SAP Data Types Required data types: Organizational levels (data, elements) Master data Transactional data (e.g., documents) If you change the code, SAP will no longer support you. You should FULLY research before you make the decision to modify. Gateway Computer: not able to up-grade with JDE because they made so many changes. They were stuck with a version of software over a decade old without the functionality they needed with the newest releases. © SAP AG and The Rushmore Group, LLC 2008

Data Type 1: Organizational Levels Defines the enterprise structure in terms of legal or business purposes, including legal entities, plants, storage areas, sales organizations, profit centers: Client (e.g., 340) Highest organizational level Represents the enterprise consisting of many companies Business area (e.g., BI##) An organizational unit within financial accounting. It corresponds to a defined business segment or area of responsibility, to which you can assign value movements recorded in Financial Accounting. Company Code (e.g., US##) Identifies legal entities in an enterprise Central organizational element in financial accounting.

Data Type 1: Organizational Levels Organizational levels in Logistics Plants (e.g. DL##, MI##, SD##) Represents factory, warehouse, office, distribution center, etc. Storage locations A location within a plant where materials are stored At plant DL##: FG##, SF##, RM##, MI## At MI##: FG##, MI##, TG## At SD##: FG##, MI##, TG##

Data Types 1: Organizational Levels GBI Enterprise (340) US02 GBI DL## MI## SD## RM ## TG## FG ## GBI US03 Client Company Code Plant Storage Locations DL## MI## SD## MI## SF ##

Data Type 1: Organizational Levels Organizational levels in Accounting Client Company code Business area Controlling area Operating concern Organizational levels in procurement Purchasing organization Purchasing group Plant Storage location Organizational levels in fulfillment (sales) Sales organizations Divisions Distribution channel Sales areas Shipping point Plant Storage location Organizational levels in PP Work Center Shipping Point

Enterprise Structure Example Procurement Shipping Point DL## MI## SD## TO## HD## HH## PE## RM## TG## TG## TG## RM## TG## TG## Storage Location SF## FG## FG## FG## SF## FG## FG## FG## MI## MI## MI## FG## MI## MI## MI## MI## Central Purchasing Organization (global) GL## Purchasing Org. US## CA## PO DE## AU## Purchasing Group North America N## PGr Europe N## Asia AS## CC: company code. CoA: chart of accounts (country-specific). CA: controlling area. Business Area: by products Dallas DL## Miami MI## S. Diego SD## Toronto TO## Heidelb. HD## Hamburg HH## Perth PE## CC US## CA## CC DE## AU## Client GBI (340)

Enterprise Structure Example Sales and Distribution Distribution Channel Wholesale WH Division Accessories AS Division Bicycles BI Distribution Channel Internet IN SO West UW## SO West CW## SO North DN## SO North GN## SO North AN## CC: company code. SO: sales organization. Division: by product line SO East UE## SO East CE## SO South DS## SO South GS## SO South AS## CC US## CC CA## CC DE## CC GB## CC AU## Credit Control Area (global) GL## Client GBI (340)

Data Type 2: Master Data Long term data that represent entities of: Procurement Vendor Material Info records, source list Fulfillment (Sales & Distribution) Customer Conditions (pricing, output) Production Bills of material Work centers Product routings

Types of Data 3: Transaction Data Data generated during executing process (steps) combining: Organizational levels Master data Situational data (who, what, when, and where) Example: sales order Organizational levels: customer, company code, sales area Master data: customer master, material master Situational data: date, time, person, quantities

Types of Data 3: Transaction Data Document concept An electronic record of transactions Each transaction creates document(s) Document types Financial accounting documents (FI) Management accounting documents (CO) Material documents (goods movement, MM) Others

SAP ERP Document Principle ECC 6.0 January 2008 SAP ERP Document Principle Each business transaction that writes data to the database creates a uniquely numbered electronic document Each document contains information such as Responsible person Date and time of the transaction Commercial content Once created, a document can not be deleted from the database Every transaction is an electronic document. It keeps track of everything you do. Allows users to track every action taken in a company. Simply put, it allows users to answer the question “Where’s my order.” What Where it is and where it came from, and where is it going next When Who © SAP AG and The Rushmore Group, LLC 2008

Document Example: Purchase order Header Line items

Global Bike, Inc. (GBI) System Configuration Introduction

Learning by Creating a Model Business ECC 6.0 January 2008 Learning by Creating a Model Business Understanding business processes and their integrative nature Understanding SAP organizational structures Combining business processes and SAP organizational structure (i.e., configuration) Test the newly configured system View system outputs - statistics, reports, and graphics You are actually going to start from scratch. Financial Organizational Structures Material Master Org. Structures Sales and Distribution structures Rules then run transactions © SAP AG and The Rushmore Group, LLC 2008

GBI Inc. A company in the promotional Bike business ECC 6.0 January 2008 GBI Inc. A company in the promotional Bike business buy and re-sell different lines of promotion bikes sell to both wholesale and Internet with a production facility DL##, at Dallas to manufacture its own product and two distribution centers MI## at Miami, and SD## at San Diego. with two sales organizations UE## and UW## and one purchase organization US##. We will setup and execute the 3 major processes an organization We created a pen because it was very easy to setup and understand. The IDES has a motorcycle, but that is more complex than we need to teach the system. © SAP AG and The Rushmore Group, LLC 2008

Enterprise Structure Client (340) Credit Control Fiscal Year Plants (DL##/MI##/SD##) Client (340) Chart of Accounts (GL##) Company Code (US##) Fiscal Year Variant (K1) Credit Control Area (GL##) Purchasing Org. (US ##) Group (N##) Shipping Point (DL##/MI##/SD##) Distribution Channel (IN/WH) Division (BI/AS) Sales Area Controlling Area (NA ##) FG## SF## Sales Org. (UW##/UE##) Business Area (BI##) Cost centers RM## MI## Work center (ASSY/INSP/PACK/MANT/SERV) TG##

Company configuration Global Bike Company (GBI) Inc. (US##) Dallas TX, US Facilities: One manufacturing plant at Dallas (plant, DL##) Work Centers (ASSY10##/INSP10##/PACK10##) Storage Locations FG## - Finished products SF## - Semi-finished products RM## - Raw materials MI## - Misc. materials Shipping point (DL##) Two Distribution centers (Plants, MI##/SD##) Sales Organizations (UE##/UW##) Purchase Organization (US##) Company configuration

Company configuration Cost Center Standard Hierarchy (NA##) NA10## (Cost center group for Company headquarter) N11## (Cost center group for Executive board) N12## (Cost center group for Internal service) NA20## (Cost center group for Admin. and financials) NA30## (Cost center group for Marketing) NA40## (Cost center group for Operations) N41## (Cost center group for R&D) N42## (Cost center group for Production) N43## (Cost center group for Plant maintenance) N44## (Cost center group for Quality) N45## (Cost center group for Service) NA50## (Cost center group for IT) Company configuration

Material Description (Short Text) GBI Inc. : Products: Finished Materials Your Material Number Material Description (Short Text) Standard Price (Cost) Sales Price (WH/IN) DXTR10## ## Deluxe Touring Bike (black) $1,400 $2,800 DXTR20## ## Deluxe Touring Bike (Silver) DXTR30## ## Deluxe Touring Bike (red) ORMN10## ## Men's Off Road Bike $1,200 $2,400

Moving Ave. Price (Cost) GBI Inc. : Products: Trading materials Your Material Number Material Description Moving Ave. Price (Cost) Sales Price (WH/IN) EPAD10## ## Elbow Pads $ 37.50 $ 70 KPAD10## ## Knee Pads OHMT10## ## Off Road Helmet $ 25.00 $ 50 RHMT10## ## Road Helmet RKIT10## ## Repair Kit $ 16.00 $ 32

GBI Inc.: Key Processes Procurement (buy) Fulfillment (sell) Production (make) Material forecast & demand planning (plan) Financial Accounting (track) Management Accounting (track) Inventory and Warehouse Management (store) Enterprise Asset Management (EAM, maintain) HCM (people)

GBI Inc. : The company Information system requirement IS of the GBI, Inc. will integrate and share all services for all business functions in the Dallas Office Centralize all ERP functions Achieve the primary business objectives: Reduce Costs Deliver Best-in-Class Technology to all divisions

SAP GBI Client, Userid, Password SAP Exercises for Lab 1 to Lab 9: Description: CAIRO Application server: cairo.cob.csuchico.edu Instance number: 00 System ID: CAI Client: 340 Userid: gbi-002 to gbi-030 Initial password: FLORIDA

SAP Userid and Password for GBI No. Student Userid Password 1 Alqaznly,Abdulaziz Muhammad gbi-002 FLORIDA 2 Bueno,Alberto Jose gbi-003 3 Camacho,Jorge Eduardo gbi-004 4 Cateriano,Carlos Enrique gbi-005 5 Fuentes,Brenda Liz gbi-006 6 Hitt,Bria gbi-007 7 Le,Quynh Anh N gbi-008 8 Medina guevara,Ynirida gbi-009 9 Mendez,Diomedes Pavel gbi-010 10 Mira rincon,Diana gbi-011 11 Montenegro,Brian gbi-012 12 Montserrat,Daniel E gbi-013 13 Munroe Jr,Dino Philip gbi-014 14 Peralta,Cesar gbi-015 15 Perez Acevedo,Leslie gbi-016 16 Perez,Juan Antonio gbi-017 17 Pitterson,Shaleese J gbi-018 18 Rivera,Maria Adelaida gbi-019 19 Rogers,Timothy James gbi-020 20 Sanchez,Javier Alexis gbi-021 21 Triminio,Genesys Haydee gbi-022 22 Viniachi,Estrella gbi-023 23 Wu,Xiaoling gbi-024 24  Pico, Daniel gbi-025 25 Wang, Yinan Gbi-026

Exercises: due date –8/26/2017 1. Define company code 2. Define business area 3. Define empty chart of accounts 4. Maintain controlling area 5. Define credit control area 6. Define variants for open posting period 7. Define field status variants 8. Enter global parameters 9. Assign company code to controlling area 10.Assign controlling area to op. concern 11.Define standard hierarchy 12.Assign company code to permitted credit control area 13.Maintain company code for materials 14. Define plants 15. Maintain storage locations 16. Assign plants to company code