04/29/00 SAP Functional John Tullis DePaul Instructor john.d.tullis@us.arthurandersen.com Copyrighted material John Tullis 4/20/2017

Over 5,000 installations around the world SAP SAP Architecture Business processes Open systems Client / server architecture Business Engineering Designed for all types of business Multinational Comprehensive functionality Over 5,000 installations around the world R/3 Client / Server ABAP/4 FI Financial Accounting CO Controlling AM Fixed Assets Mgmt. PS Project System WF Workflow IS Industry Solutions MM Materials HR Human Resources SD Sales & Distribution PP Production Planning QM Quality Manage-ment PM Plant Main-tenance Copyrighted material John Tullis 4/20/2017

SAP SAP Logistics - SCM C U S T O M E R Supply Distribution Continuous Replenishment Program (CPR) Vendor Managed Inventory (VMI) Efficient Consumer Response (ECR) Copyrighted material John Tullis 4/20/2017

SAP SAP Logistics - SCM Distribution Procure- ment Production S U P P L I E R Service Management C U S T O M E R Copyrighted material John Tullis 4/20/2017

Finance and Accounting Open Information Warehouse SAP SAP Logistics - SCM All business processes throughout the supply chain are executed in one system sharing all information S U P P L I E R C U S T O M E R Procurement Production Distribution Finance and Accounting MM PP SD FI CO Workflow Open Information Warehouse Copyrighted material John Tullis 4/20/2017

Supply Chain Management is integrated nationwide and even worldwide SAP SAP Logistics - SCM - Horizontal Supply Chain Management is integrated nationwide and even worldwide Production Plant Warehouse Distribution Center Copyrighted material John Tullis 4/20/2017

R/3 SAP SAP Logistics - SCM - Centralized One R/3 System for all multi-lingual multi-currency multi-plant multi-company One R/3 System for all countries and regions R/3 MM PP SD FI CO Copyrighted material John Tullis 4/20/2017

Central Information and Planning SAP SAP Logistics - SCM - Decentralized R/3 A L E Decentral Execution Central Information and Planning MM PP SD FI CO Sales information Profitability analysis Inventory information Purchasing information Forecasting Sales and operations planning Copyrighted material John Tullis 4/20/2017

SAP SAP Logistics Modules Customers Vendors Sales Shipping Invoicing Purchasing Warehousing Invoice verification Project networks Plant Maintenance - repairs - maintenance Inspection planning & management Financial Accounting Cost Accounting Asset Human Resources QM PP PS PM SD MM Sales and operations planning Demand management/ Master production scheduling Material requirements Capacity requirements planing Production control Costing Information system Copyrighted material John Tullis 4/20/2017

SAP Materials Management Business Processes Customer order Shipping Invoicing Availa- bility check Production plan generation Capacity requirements planning Planned activity control Purchase requisition Vendor selection Release Goods receipt Invoice verification QM Resource Controlling Financial Controlling Sales & Distribution Purchasing Logistic Controlling Sales, Production, Purchasing, Warehouse Capacity, Materials, Production & Test Equipment Copyrighted material John Tullis 4/20/2017

? SAP SAP Materials Management - Procurement Determination of material requirements Create service specifications Bid invitation Entry of quotation Vendor selection Ordering Purchase order monitoring services performed Acceptance of services Invoice verification LV OK ? Inquiry Order PM PS Copyrighted material John Tullis 4/20/2017

Purchase order confirmation Confirmation of change SAP SAP Materials Management - Procurement Inquiry Offer Purchase order Purchase order confirmation Purchase order change Confirmation of change Invoice Purchasing Sales Copyrighted material John Tullis 4/20/2017

SAP Procurement Quality Assurance Inquiry Vendor selection Purchase order Goods receipt Production Vendor evaluation - Quality - Price behavior - Vendor's quality management system - Vendor block Technical terms of delivery Technical terms of delivery Quality assurance agreement Inspection: incoming goods & production - Quality messages, complaints - Stock in quality inspection & blocked stock - Sample inspection - Usage decision for inspection lot - Quality score calculation Vendor rating Copyrighted material John Tullis 4/20/2017

SAP Warehouse Logistics Goods receipt Production Shipping STORAGE LOCATION STORAGE LOCATION MANAGEMENT Stock placement & removal strategy Transfer orders Production storage bin Pallets Means of transport Warehouse control unit Picking Batch determination Production warehouse Batch management Quality inspection Special stock Copyrighted material John Tullis 4/20/2017

SAP SAP Warehouse Control Goods receipt Goods issue SD MM PP WM Goods receipt Goods issue Transfer requirements Transfer orders Confirmation Physical inventory Copyrighted material John Tullis 4/20/2017

SAP Warehouse Management automatic generation of transfer orders additional capacity optimization functionality enhanced performance control using LIS support shelf life expiration dates integration to PP, QM certifiable interfaces to warehouse control technologies support customer individual requirements major performance enhancements Copyrighted material John Tullis 4/20/2017

SAP Warehouse Management complex storage area MM SD WM HOST WCU Definition and management of complex warehousing structures Stock placements, stock removals and stock transfers Inventory at the storage bin level As a decentralized system Interface to warehouse control technology Copyrighted material John Tullis 4/20/2017

SAP Materials Management Organization Corporate group Company code Valuation level Purchasing organization Sales organization Plant Warehouse Storage bin 2000 001 0001 0002 0003 1000 3000 4000 0004 0005 100-1 100-2 100-3 100-4 Copyrighted material John Tullis 4/20/2017

SAP Sales & Distribution MM CO PM PS FI PP Materials Management Production Planning Plant Maintenance Controlling Financial Accounting Project System SHIPPING BILLING DATA WAREHOUSE MASTER DATA SALES SUPPORT SALES Copyrighted material John Tullis 4/20/2017

Delivery free of charge Subsequent delivery free of charge SAP SAP Sales & Distribution Sales Support Sales activity Sales Inquiry Quotation Contract Delivery free of charge Subsequent delivery free of charge Sales order Scheduling agreement USD Returns S A L E S I N F O R M A T I O N S Y S T E M M A T E R I A L S M A N A G E M E N T Shipping Delivery Billing Debit memo Invoice Credit memo F I N A N C I A L A C C O U N T I N G Copyrighted material John Tullis 4/20/2017

SAP SAP Financials Quality Time Risk Liquidity Financial Accounting COST ROI SD PP MM CO IM TR-CM TR-TM Copyrighted material John Tullis 4/20/2017

Recon- ciliation Ledger Payrolls/ Travel expenses SAP SAP Financials Financial Accounting Open Information Warehouse General Ledger IM CO PP HR SD MM TM CM Fixed assets Recon- ciliation Ledger Financial assets Bank accounts A/R Payrolls/ Travel expenses Material Ledger A/P analytical operational Copyrighted material John Tullis 4/20/2017

Processes A c t u a l P l a n SAP SAP Financials - Activity Based Cost Management Products Process . . . Analytical cost planning based on usage factors What if analysis Make overhead areas more transparent Analytical and operational ABC in parallel Processes A c t u a l Quantity x Price P l a n Cost centers / Resource centers Standard consumption rate Profitability Analysis Copyrighted material John Tullis 4/20/2017

Warranty Product Payment Billing Geography Delivery Customer Order SAP SAP Financials - Determining Profitability Warranty Payment Billing Delivery Quotation Product Geography Customer Business risks Cash discounts Operating profit Processing costs 2 Revenue 1 Revenue 2 Product costs 1 Product costs 2 Agency fee Processing costs 1 Order Distribution Channel Copyrighted material John Tullis 4/20/2017

Capital Budget : Preparation Fixed Asset Management SAP SAP Financials - Calculating ROI Capital Budget : Preparation Budget Release Budget Execution CO IM PS Generating investment proposals Project evaluation Project selection Investment "portfolio" Processing Activities Settlement projects orders Fixed Asset Management Copyrighted material John Tullis 4/20/2017

Assets and liabilities Information Warehouse SAP SAP Financials - The Modules Group accounting EC TR TREASURY Funds Center Cash flow Risk Mgmt . . . Company code Business area CO CONTROLLING Profitability Center Costs FI ACCOUNTING Capital investment & financing Return on investment IM Assets and liabilities EIS Information Warehouse Copyrighted material John Tullis 4/20/2017

Notice, parental leave, transfer, long-term illness SAP SAP Human Resources - Hiring Process (ex.) Advertisement of a vacancy Application processing Transfer Hiring Individual training Notice, parental leave, transfer, long-term illness End Personnel requirement Copyrighted material John Tullis 4/20/2017

SAP Human Resources - Hiring Process (ex.) Job advertisement required Evaluation of tasks and requirements Internal job advertisement Job applications arrive (deadline)? Yes No Internal analysis of potential Suitable Unsuitable Job interview Transfer Positive Negative Is it necessary to advertise the job externally? External job advertisement Application processing Copyrighted material John Tullis 4/20/2017

General Business Needs - Utility Industry SAP General Business Needs - Utility Industry Copyrighted material John Tullis 4/20/2017

SAP Modules - Utility Industry Copyrighted material John Tullis 4/20/2017

Process industries SAP Process Industries Semi conductors Chemical Pharmaceutical Food & Beverage Copyrighted material John Tullis 4/20/2017

R/3 SAP SAP - Production Planning Module for PI PP Client / Server ABAP/4 R/3 FI CO WF AM PS IS HR SD MM PP PM QM PP - BD Basic Data PP - MPS Master Prod. Scheduling PP - MRP Mat. Rqmts. Planning PP - CRP Capacity Rqmts. Planning PP - SFC Shop Floor Control PP - PC Product Costing PP - IS Production Info System PP - PI Process Industries Copyrighted material John Tullis 4/20/2017

SAP - Functionality needed for Process Industry Product design Batch selection via customer specification certificate of analysis generation Batch, quality, prod. tracking Charge & yield calculation Co/by-product processing Links to PCS/PI sheet Production Info. Mgt EBR Service design management Financial Production Distribution Supplier Purchasing Sales Customer Vendor specifications Vendor performance history Vendor classification Customer quality specifications Configurable orders Production planning Multi-plant master scheduling Batch size calculation Maintenance management Management Quality Inventory control Copyrighted material John Tullis 4/20/2017

SAP - the Petroleum Industry Functionality: Joint Venture Accounting Materials Management Financial & Mgmt Accounting Property Management Project Management Maintenance & Equipment Mgmt Human Resources Acquisition Drilling Production IS-Oil Upstream functionality Copyrighted material John Tullis 4/20/2017

SAP - the Petroleum Industry IS-Oil Downstream functionality Functionality: Industry Solution Materials Mgmt. Financial Accounting Controlling Asset Management Project System Plant Maintenance Human Resources Quality Management Production Sales & Distribution Workflow Acquisition/ trade Transport Manu- facturing Storage/ distribution Marketing Copyrighted material John Tullis 4/20/2017

The Petroleum Industry Supply Chain SAP The Petroleum Industry Supply Chain Oil & Gas Production Gathering System Supply Pipeline Product Pipeline Bulk Terminal Transfers, Sales, Purchases, Exchanges Retail Stations Exchange Contract Commercial Customers Pipeline Batches Acquisition/ trading Transport Manufacturing Storage/ Distribution Marketing Refinery Lubes Plant Chemical Plant Acquired Purchase Sales Producer Copyrighted material John Tullis 4/20/2017