1. Enterprise Systems Integration Spring, 2012

2. High-Level OP Planning
ECC 6.0
January 2008
Enterprise Operations Planning
OP Execution
High-Level OP Planning
Procurement
Process
CO/PA
Detailed OP Planning
Forecasting
Sales and Operations
Planning
Demand
Management
MPS
MRP
Execution
Sales Information
System
Manufacturing
Execution
Warehouse
Management
Strategy Planning
Vision
Goals & Objectives
Strategy
Product Portfolio and Roadmap
Sales
Process
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

3. Enterprise Planning Process Business Process platform

4. Factors which impacts Business Planning

5. Business Planning Process

6. Linking the Component Plans
rate of turnover
Financial Plan
Revenue Plan
Planned Profit
price trend
interest
Investment Plan
amortization
Sales Plan
Capacity Plan
machine hourly rate
work shedule
bill explosion
Cost Projection
personnel costs
Production Plan
Personnel Plan
costs of supply
Overhead Costs
Procurement Plan
Source: Gluchowski, Gabriel, Dittmar

7. Intra-Enterprise Systems Integration
Corporate
Planning
Accounting
Supplier Management,
Production Planning,
Cost Planning, …
Supplier
Purchasing
Prod.
Sales
Personnel
Warehouse
Customer Invoices
Employee Salary
Administration II:
Amount-Oriented
Processing
Administration I:
Value-Oriented
Disposition and Planning
Analysis and Controlling
Strategic
Enterprise
Management
Horizontal Integration
Top Management
Vertical Integration
Middle Management
Lower Management
Source: Mertens, P., Meier, M.: Integrierte Informationsverarbeitung (2009), 1.

8. Enterprise Strategy Pyramid

9. Developing Operations Strategy
Mission & Vision
Assessment
of Global
Business
Conditions
Distinctive
Competencies or
Weaknesses
Business Strategy
Product/Service Plans
Competitive Priorities
Operations Strategy

10. Competitive Priorities
Response time
Cost
Quality

11. Enterprise Systems Integration SAP Implementation Spring, 2012

12. R/3 SAP Module View Integrated Solution Client / Server Open Systems
Financial
Accounting
Sales &
Distribution
Materials
Mgmt.
Controlling
Production
Planning
R/3
Fixed Assets
Mgmt.
Integrated Solution
Quality
Mgmt.
Project
System
Client / Server
Plant
Maintenance
Open Systems
Workflow
R: real time. 3: 3-tier client-server architecture (database, application, and presentation layers)
Human
Resources
Industry
Solutions

13. Chart of Accounts United States Chart of Accounts Canadian Chart of
ECC 6.0
January 2008
Chart of Accounts
United States Chart of
Accounts
Canadian
Chart of
Accounts
Each company may have the same chart of accounts in a given country: That way sales in Canada will go to the Sales account and sales in the US will go to the Sales Account
For consolidation: these will match up
Company
Code 010
Company
Code 038
Company
Code 110
Company
Code 117
January 2008
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© SAP AG and The Rushmore Group, LLC 2008

14. Organizational Structure for Financial Accounting
ECC 6.0
January 2008
Organizational Structure for Financial Accounting
Client
Company
Chart of
Accounts
Code
Fiscal Year
Variant
Credit Control
Area
You have to assign a chart of accounts to each company code. This chart of accounts is the operating chart of accounts and is used for the daily postings in this company code.
You do not have to create a company
You do have to create a company code
The only reason to create a company is when you have to create a consolidated financial statement
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

15. General Ledger Company Code Data (continued)
ECC 6.0
January 2008
General Ledger Company Code Data (continued)
General Ledger
Reconciliation Accounts
A/R, A/P, GR/IR
General
Ledger
Debit Credit $$
Subsidiary
Ledger Accounts
A/R, A/P, GR/IR
When you post items to a subsidiary ledger, the SAP system automatically posts the same data to the general ledger at the same time. Each subsidiary ledger has one or more reconciliation accounts in the general ledger. These reconciliation accounts ensure that the balance of G/L accounts is always zero. This means that you can draw up financial statements at any time without having to transfer totals from the subledgers to the general ledger.
Debit Credit
GR/IR
Debit Credit
A/R
Debit Credit
A/P $$ $$ $$
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

16. Procurement Process (Procure-to-Pay)
ECC 6.0
January 2008
Integration
Procurement Process (Procure-to-Pay)
Purchase
Requisition
Purchase
Order
Notify
Vendor
Payment
to Vendor
This is a standard view of the procure to pay process and the most common. It may vary significantly based upon the company procedures, the products/services purchases and other factors.
SAP allow businesses to tailor it to their needs.
Starts with a requisition or need that needs to be filled. This can come from Planning (MRP), manually or other
The purchase order is the document to fill the need: usually includes the vendor, cost/price, quantity, terms and other pertinent information. [ part one of the 3-way match]
Notifying the vendor
The goods are shipped and brought to the organization
The goods are received (typically at the dock) and then put away [ part two of the three way match]
An invoice is received from the vendor [third part of the 3-way match]
After the tolerances/verification of the 3-way match are met a payment is made according to the terms agreed to on the purchase order.
Vendor
Shipment
Invoice
Receipt
Goods
Receipt
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

17. Sales Order Process (Order-to-Cash)
ECC 6.0
Sales Order Process (Order-to-Cash)
January 2008
Integration
Check
Availability
Sales Order
Entry
Pick
Materials
Receipt of
Customer Payment
Pack
Materials
Not unlike the procure to pay process, this is completely configurable. You decide how you want the order to cash process to work and configure the system appropriately
May start with Sales Order
Check inventory
If you do not have inventory –procurement process or production process
Pick materials: from inventory
Pack material: (optional) pack in box appropriate box or other
Post Goods Issue (Title transfer)
Invoice Customer –Create Accounts Receivable
Collect Money
Invoice
Customer
Post Goods
Issue
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

18. Production Process (Make-to-Stock)
ECC 6.0
Production Process (Make-to-Stock)
January 2008
Capacity
Planning
Schedule
and Release
Production
Proposal
(Planning/Other)
Shop Floor
Documents
Order Settlement
Goods
Issue
Goods
Receipt
Completion
Confirmation
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

19. Organizational Structures -cost center standard hierarchy
Plant (Pxxx)
Client (765)
Chart of
Accounts (Cxxx)
Company
Code (Cxxx)
Fiscal Year
Variant (2011)
Credit Control
Area (Cxxx)
Purchasing
Organization (Pxxx)
Group (xxx)
Shipping
Point (Sxxx)
Controlling Area (Cxxx)
SL10
SL20
Cost Center Standard Hierarchy (PENINCxxx)
ADMINxxx
A005
A010
A015
A020

20. Asset Accounting Components
Intangible assets
Tangible assets
Financial assets
- Fixed assets
Leased assets
Assets under construction
Intellectual property
Patents
Trademarks
Securities
Long term
notes (debts)
- Mortgages

21. Asset Management (Lifecycle)
Cost center
Asset master creation (AA)
Asset
Report
(AA)
Business Area
Vendor master
Asset Acquisition
(AA)
External
Plant/location
Vendor invoice
Asset Addition
(AA)
Depreciation Charge
Outgoing payment
Asset
Retirement
(AA)
AA: asset accounts
Asset Transfer (AA)
Customer/Scraping
Customer Master
Customer Invoice
Customer Payment
Within/outside
Company code

22. Comparative Reporting
ECC 6.0
Comparative Reporting
January 2008
Liquidity
Calculation
Retained Earnings Report
Financial Accounting (FI)
Balance Sheet
Income Statement
External Reporting
Cost Center Reports
Financial accounting is external and feeds the external reporting requirements
Managerial Accounting is internal only
Product
Costs Reports
Managerial Accounting (CO)
Profit Margin
Profit
Center
Reports
Internal Reporting
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

23. Financial Reports Reporting Types Internal External Reporting
Version 1.0
January 2007
Financial Reports
Reporting
Types
Internal
Reporting
External
Reporting ES
Database
Integrated
Information
External Interfaces
ES Reporting Features
The Rushmore Group, LLC

24. Balance Sheet ECC 6.0 January 2008 Assets top Liabilities middle
Owner’s equity bottom
Compares one year the next
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

25. Income Statement ECC 6.0 January 2008 Revenues Expenses
Profit on bottom
Microsoft’s income statement
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

26. Version 1.0
Financial Ratios
January 2007
Financial ratios are the tools used to analyze financial condition and performance. Financial ratios can be divided into five basic types:
Liquidity,
leverage (debt),
coverage,
activity, and
profitability.
No one ratio is itself sufficient for realistic assessment of the financial condition and performance of a firm. With a group of ratio, reasonable judgments can be made.
Comparing one company with similar companies and industry standards over time is crucial. Such a comparison uncovers leading clues in evaluating changes and trends in the firm’s financial condition and profitability. This comparison may be historical, but it may also include an analysis of the future based on projected financial statements.
The Rushmore Group, LLC

27. HCM Process in the Employee Lifecycle
12-28

28. Organizational Structure
The Organization and Planning module is the foundation for the Personnel Planning and Development Area.
Objects are linked to each other by relationships.
Linking organizational units results in the production of organizational charts.
Positions occupied by individuals belong to an organizational unit.
Within HR Planning the term “job” is used as a classification. Every position is described by a job.

29. HCM: Process/Functions
Version 1.0
HCM: Process/Functions
January 2007
Recruitment
Cost Planning
Reporting
Training and Development
Manage Work
Time (CATS)
Payroll
Administration
Hire Employee
ESS
Employee
Self-Service
Compensation
& Benefits
CATS – Cross Application Timesheet
The Rushmore Group, LLC

30. Business Process Integration
ECC 6.0
Business Process Integration
January 2008
HCM
Transactions
Master Data
Org Data
Rules
HCM
HCM
HCM
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

31. Corporate Performance Management
„One cannot manage what cannot be measured!“
Vision
Events
Goals/
Results
Strategies
Business Processes
Measure
Compare
Aus der Analyse werden Aktionen angestoßen; Feedback führt zur Anpassung der Strategie
Act
Decide

32. Balanced Scorecard Approach

33. Dashboard definition
“A dashboard is a visual display of the most important information needed to achieve one or more objectives; consolidated and arranged on a single screen so the information can be monitored at a glance”
(Few, 2004)
Why should dashboards be used in the decision making process?
The ability to receive, process and remember information can be increased by the use of visual appliances
But:
To effectively support decision makers, problem representation has to match the task that is to be performed

34. The New Intelligence Platform of SAP
Name is changed to SAP Crystal Dashboard Design
The New Intelligence Platform of SAP
Please check sdn.sap.com for latest version
SAP Crystal Dashboard Design (formerly Xcelsius) is
the flagship product for
dashboarding and visualization
Rapid development
of dashboards by
drag and drop
Replacing SAP Bex
Web Application
Designer
Connectivity through XML and webservice
connectors
Source: (SAP AG 2009)

35. SAP Crystal Dashboard Design (Xcelsius)
Extremely attractive
Highly interactive
Feather light
Highly scalable
Easy to build and maintain
Source: K. Jason, M. Ty (2008). Which BI Client To Use. Retrieved 02/15/2009 from