Introduction to Enterprise Systems, Enterprise Computer Models and SAP / R3

Slide 2 Overview Introduction to today’s enterprise computing ecosystem Summary of enterprise systems Summary of the SAP enterprise system

Slide 3 The Enterprise Ecosystem We have traditional on premises computer systems SAP / ORACLE We utilize “the cloud” Clouds are categorized as public or private We run various types of services on these clouds SaaS, PaaS, SOA, Web services

Slide 4 A Taxonomy of the Cloud Public clouds Pay as you go model for computing resources No control of hardware or performance Limited to no long term contracts Private clouds Always single tenant dedicated to a company

Slide 5 Cloud Stack

Slide 6 Infrastructure as Service (IaaS) - 1 physical or virtual computing infrastructure (servers, storage, networking) are outsourced to external companies We manage the operating system and applications running on these servers HIPPA compliance

Slide 7 Infrastructure as Service (IaaS) - 2 Amazon EC2 provides hosted servers We can purchase SAP HANA instances on the EC2 Microsoft Azure provides hosted Windows and SQL Server instances in the cloud Rackspace provides similar services

Slide 8 Platform as a Service (PaaS) -1 Platform as a Service (PaaS) is a paradigm for delivering operating systems and associated services over the Internet without downloads or installation We extend Salesforce.com through their application programming interfaces (APIs) We talk to Facebook through its APIs

Slide 9 Software as a Service (SaaS) - 1 SaaS provides access to specific application software through the cloud Salesforce.com is built on this model We access the software entirely through the Web Apprenda.com

Slide 10 Software as a Service (SaaS) -2 Google Apps is akin to an web-based version of Office s/ s/ Office 365 is office in the cloud

Slide 11 Characteristics of Enterprise Systems They are some of the most complex systems in use today They are typically N-tier systems made up of clients an application / business logic layer a data layer

Slide 12 The SAP Enterprise System You access the SAP R3 program on a PC via a software program known as NetWeaver The database and application lives on virtualized servers at Chico State University

Slide 13 Core ERP Functions – From the SAP point of view Financial accounting (FI) Records all financial transaction for external reports Controlling Accounting (CO) Receives data from other components to manage overhead and product costs Production Planning (PP) Records all production information (BOM, routing, MRP

Slide 14 Core ERP Functions – From the SAP point of view Materials Management (MM) Records all material-related information (vendors, purchasing, storage location in warehouses, …) Sales and Distribution (SD) Records all data related to customers (distribution channels, pricing, sales info) Plant Maintenance (PM) Record maintenance equipment schedules, maintenance orders, and maintenance materials

Slide 15 Core ERP Functions – From the SAP point of view Human Capital Management (HCR) Record all employee information Project Systems (PS) Record cost and completeness of projects Quality Management (QM) Track quality of purchased or procured materials and develop quality history

Slide 16 The SAP Ecosystem

Slide 17 SAP Clients You run a program called NetWeaver on your PC or Windows computer NetWeaver allows you to connect to an application server There are several at Chico State You communicate with these application servers via the SAP Easy Access Menu

Slide 18 SAP NetWeaver Login You use NetWeaver to connect to the application servers at Chico State

Slide 19 SAP NetWeaver (Easy Access) Drill-down Easy Access menu to run transactions)

Slide 20 The SAP Application Server (1)

Slide 21 The SAP Application Server (2) The dispatcher accepts transactional requests and hands them off to work processes for actual execution These work processes, in turn, record changes to the central DBMS Roughly speaking this process is called a unit of work A logical unit of work has a transaction code

Slide 22 Logical Unit of Work (Introduction) The unit of work concept ensures transactional integrity A sequence of database operations are completed in their entirety or not at all An accounting transaction cannot end up “partially recorded”, which would lead to an out of balance G/L

Slide 23 Logical Unit of Work (Illustration)

Slide 24 LOW (Example) This example demonstrates the transaction to purchase supplies for cash The transaction code is FB50

Slide 25 LOW (Example) Screen 1 (Enter Document)

Slide 26 LOW (Example) Screen 2 (Simulate Transaction)

Slide 27 LOW (Example) Screen 3 (Post)

Slide 28 The Data Layer The database contains about tables These tables store ALL application data As mentioned HANA, ORACLE, SQL Server can be used as the database We can use the Data Browser to look at these tables

Slide 29 The Database (Example) The transaction that you just recorded caused An accounting header record to be recorded to the database table named BKPF Transactional records were written to the table BSEG

Slide 30 The Database (Example) The accounting header record Table BKPF

Slide 31 The Database (Example) The transactional entry has two records (DR and CR

Slide 32 The Database (Example) Debit and credit transactional records

Slide 33 Organizational Data Organizations are usually structured hierarchically Company ( table T001) Accounting Finance Credit granting Divisions Plants and warehouses Sales and marketing office

Slide 34 Organizational Data (SAP) An organization (enterprise) runs on a client The SAP term really has a unique meaning in this context Think of the client as the server or server clusters (instance) (enterprise) A client can have multiple companies Roughly speaking, a company produces independent financial statements

Slide 35 Organizational Data (Company) Table T001 contains the master company records Global Bike has two companies

Slide 36 Organizational Data (SAP) A company can have many facilities Plants create goods and services Distribution centers store goods (warehouses) In SAP, a distribution center is a type of plant A company can have many purchasing organizations and sales organizations A purchasing organization buys goods A sales organization sells them

Slide 37 Organizational Data (Plant) The table T001W contains the list of plants The table T001K associates plants with companies

Slide 38 The Global Bike Organizational Structure Global Bike Group Global Bike Inc. US00Global Bike Germany GmbH DE00 DallasMiamiSan DiegoHeidelberg Hamburg Enterprise Companies Locations (plants)

Slide 39 Types of SAP Data SAP data is categorized into two types Master data describes entities used across business transactions (long-term data) Customers buy goods again and again for example We buy goods from vendors Transactional data reflects the consequences (outcomes) of executing process steps (transactions) related to master data

Slide 40 Types of Master Data Materials (MARA) Used in manufacturing Purchased from vendors and sold to customers (trading goods) Customers (KNA1, KNB2, KNVV) Buy goods from us Vendors Sell goods to us

Slide 41 Transactional Data Transactional data records the outcome of a process Goods movement Shipment documents Transfer of goods between warehouses Financial documents Sales (Invoice and payment receipt – accounts receivable) Purchase (PO to payment – accounts payable)