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SAP University Alliances North America Introduction to SAP

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1 SAP University Alliances North America Introduction to SAP
Tom Wilder Department of Business Information Systems California State University, Chico 2019 Influence Next-Gen Leaders

2 Tom Wilder, MBA, SCPM, SAP Certified Associate Faculty of the Department of Business Information Systems at CSU, Chico since Executive Director for the Chico University Competence Center (UCC) On-site trainer for UA members ERP Sim Certified Instructor Contact information:

3 Intro to GBI Workshop Overview
Introduction to SAP Navigation All sessions will have homework Hosting Centers and Cases Introduction to GBI using SAP S4HANA Sales & Distribution Materials Management Production Planning Financial Accounting and Controlling – Time permitting Focused curriculum

4 SAP The Company

5 SAP Name of the Company Name of the Software SAP AG SE SAP America
SAP UK Name of the Software SAP® R/2® SAP® R/3® SAP ERP 6.04 S/4 (S/4 HANA) (R>S, 3>4)

6 Who is SAP? 365,000+ 180 25 87,874 $22.07 Euro 76% SAP SE
Founded in Walldorf, Germany in 1972 World’s Largest Provider of Enterprise Application Software World’s Third-largest Independent Software Provider 365,000+ SAP customers 180 Countries 25 Industries 87,874 Employees $22.07 Euro Billion annual revenue 76% World’s transactions touch SAP Source: SAP is the world's largest inter-enterprise software company and the world's third-largest independent software provider overall. We have a rich history of innovation and growth that has made us a true industry leader. SAP Americas 12 Million Users. 100,600 Installations. 1,500 Partners. SAP Americas is a subsidiary of SAP AG, the world's largest inter-enterprise software company and the third-largest software supplier overall. SAP America's corporate headquarters is located in Newtown Square, PA, a suburb of Philadelphia. Our officers and executives lead a team of professionals dedicated to delivering high-level customer support and services. Founded in 1972 as Systems Applications and Products in Data Processing, SAP has a rich history of innovation and growth that has made us the recognized leader in providing collaborative business solutions for all types of industries -- in every major market. The company, headquartered in Walldorf, Germany, employs more than 37,700 people in more than 50 countries, and serves more than 34,600 customers worldwide. Experience, Knowledge, and Technology for Maximizing Business SAP has leveraged our extensive experience to deliver mySAP Business Suite, the definitive family of business solutions for today's economy. These solutions are open and flexible, supporting databases, applications, operating systems, and hardware from almost every major vendor. What's more, mySAP Business Suite allows employees, customers, and business partners to work together successfully -- anywhere, anytime. By deploying the best technology, services, and development resources, SAP has delivered a business platform that unlocks valuable information resources, improves supply chain efficiencies, and builds strong customer relationships. And through the Global Solution Center, SAP Americas identifies customer needs and develops solutions to meet these needs. SAP is listed on several exchanges, including the Frankfurt Stock Exchange and the New York Stock Exchange, under the symbol "SAP."

7 Integrated Business Solution Vendors
SAP SAP ECC 6.0, SAP® Business All-in-One, SAP® Business One, Business by Design® SAP is the number one ERP software provider. Oracle Applications Oracle, JD Edwards, PeopleSoft, Siebel, Retek Microsoft Business Solutions Dynamics: Great Plains, Navision, Axapta, Soloman The Sage Group Sage Software - Accpac ERP, PeachTree Infor Global Solutions BAAN Workday Saas Provider Many Others

8 What is SAP® ERP? Worldwide usage
Designed to satisfy the information needs for business (small local to large all international) Multi-lingual Multi-currency Designed to satisfy the information needs for all industries

9 SAP ERP Enables a company to link their business processes
Ties together disparate business functions (integrated business solution) Helps the organization run smoothly Real-time environment Scalable and flexible

10 SAP Architecture Client/Server Environment
Client – hardware/software environment that can make a request for services for a central repository of resources Server – hardware/software combination that can provide services to a group of clients in a controlled environment

11 SAP Architecture Three – Tier Structure GUI Application Server
Graphical User Interface or Web Interface S4HANA GUI and Web Interface have same look and feel Fiori is a Web Based front end tool All three versions (GUI, Web GUI and Fiori) write to the same database Application Server One or more, help distribute work load Database Server One single data repository

12 SAP Architecture Network Presentation Application Database
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.

13 Cloud and On-premise

14 Migration to S/4 has started

15 Fiori front end

16 HANA and S/4HANA HANA is in-memory computing HANA is a database
S/4 is runs on Hana Fiori front-end is web based

17 Business Modules Collections of logically related transactions within identifiable business functions MM (“Buy”) PP (“Make”) SD (“Sell”) FI and CO (“Track”) HCM

18 Enterprise asset management
SAP Enterprise System SD Sales and Distribution FI Financial Accounting MM Materials Mgmt. CO Controlling PP Production Planning AM Fixed Assets Mgmt. SAP S4HANA SM Service Mgmt. EC Enterprise Controlling Client / Server Integrated Business Solution QM Quality Mgmt. PS Project System EAM Enterprise asset management WF Workflow HCM Human Capital Management IS Industry Solutions

19 SAP: Software Applications
Solutions SAP CRM SAP ERP SAP PLM SAP SCM SAP SRM SAP Analytics SAP Manufacturing SAP Services SAP mobile solutions Small & Medium Size Solutions SAP Business One SAP Business All-in-One SAP® Business ByDesign™ Platforms Service-oriented architecture SAP NetWeaver platform Solutions mySAP Customer Relationship Management, mySAP ERP, mySAP Product Lifecycle Management, mySAP Supply Chain Management, mySAP Supplier Relationship Management, SAP Analytics, SAP Manufacturing, SAP Service and Asset Management, SAP solutions for mobile business, SAP xApps Small and Midsize mySAP All-in-One, SAP Business One Platforms Enterprise Services Architecture, SAP NetWeaver Platform

20 SAP® Business Suite

21 SAP ERP: Core Applications
Logistics Sales & Distribution Enterprise Asset Management (Formerly Plant Maintenance) Materials Management Production Planning Quality Management Accounting Financial Accounting Controlling Asset Management Treasury Human Capital Management (HR) Personnel Management Benefits Payroll

22 SAP: Best Business Practices
SAP® Best Practices cover well-proven business scenarios that help to exploit the potentials of SAP ERP. It is a flexible building block technology that enables you to implement and adapt your solution quickly using fully documented and reusable prototypes. For three decades, SAP has developed best business practices with our most successful partners and customers. We can share this experience with you. SAP Best Practices get you started with a fully documented and reusable prototype that you can turn into a productive solution quickly. So you can control costs, reduce risk, and immediately experience the benefits of mySAP Business Suite. SAP Best Practices empower your company with: A proven methodology that leverages a prototype approach to implementation Thoroughly documented scenarios -- from both a business and a technical perspective Proven preconfigurations of SAP solutions Benefits for companies of any size, for both new and existing customers -- so you can easily adapt techniques to meet your specific requirements or use them as a starting point for customized ASP or hosted solutions

23 Introduction to SAP ERP Structure

24 SAP Generic Structure The SAP structure is hierarchical in nature Start with the Client at the top level. Each instance of SAP is typically associated with a client. An instance is a separate server and database that holds the client Under the client can be a Company. There are also Company Codes. A Company can hold multiple Company Codes. Each Company has a Chart of Accounts. Exercises in the UA Program typically do not use the Company Level If a Company is not used, then the next level is Company Code. The Company Code is the smallest organizational unit in SAP for which you can draw individual Financial Statements Under each Company Code is the Plant. This can be a warehouse, DC, or manufacturing location. Storage locations are located in the Plant.

25 SAP Generic Corporate Structure
Client – a detached, individual, customizable working environment Company Code – an independent legal entity with its own income statement and balance sheet ( I refer to this as the financial bucket) Plant – the entity to which all logistical data are linked (I refer to this at the physical location) Storage Location – used for registration of materials into stock (can be physical or logical) Warehouse Management – Used to track materials, physical location

26 Sales and Distribution – Client
© UCC Magdeburg

27 Sales and Distribution – Credit Control Area (multiple possible)
Client Credit Control Area (global) GL## © UCC Magdeburg

28 Sales and Distribution – Company Code
Client Credit Control Area (global) GL## CC US## CC CA## CC DE## CC GB## CC AU## © UCC Magdeburg

29 Sales and Distribution – Sales Office
Client Credit Control Area (global) GL## CC US## SO East UE## SO West UW## CC CA## CE## CW## CC DE## SO South DS## SO North DN## CC GB## GS## GN## CC AU## AS## AN## © UCC Magdeburg

30 Sales and Distribution – Distribution Channel
Client Credit Control Area (global) GL## CC US## SO East UE## SO West UW## CC CA## CE## CW## CC DE## SO South DS## SO North DN## CC GB## GS## GN## CC AU## AS## AN## Distribution Channel Wholesale WH Distribution Channel Internet IN © UCC Magdeburg

31 Sales and Distribution – Division
Credit Control Area (global) GL## CC US## SO East UE## SO West UW## CC CA## CE## CW## CC DE## SO South DS## SO North DN## CC GB## GS## GN## CC AU## AS## AN## Distribution Channel Wholesale WH Distribution Channel Internet IN Division Bicycles BI Division Accessories AS Client © UCC Magdeburg

32 Enterprise Structure – Financials
Client GBI Operating Concern (global) GL00 CA Europe EU## CA North Am. NA## CA Asia AS## Chart of Accounts (global) GL## CoA US## CC US## CA## CC CA## CoA DE## CC DE## GB## CC GB## AU## CC AU## JP## CC JP## Business Area – Bicycles BI## Business Area – Future Expansion

33 Materials Management (Logistics)
Client GBI CC US## Dallas DL## Miami MI## S. Diego SD## CA## Toronto TO## Shipping Point Storage Loc RM## HD## HH## AU## Perth PE## Central Purchasing Organization (global) GL## Purchasing Org. US## CC DE## Heidelb. Hamburg SF## FG## TG## Purchasing Group North America N## PO DE## PGr Europe Asia AS##

34 Organizational Structure
Credit Control Area Client Fiscal Year Variant Chart of Accounts Company Code Controlling Area Purchasing Organization Sales Organization Distribution Channel Division Plant Purchasing Group SL10 SL20 Warehouse Management Shipping Point Sales Area

35 Business Process Integration
Procure for Sales Order Pre-Sales Activity Sales Order Delivery Billing General Ledger Accounts Purchase Requisition Purchase Order Goods Receipt In Inventory Plant or Warehouse Invoice Receipt Availability Check NO YES Goods to Delivery Goods from Purchase Order Inventory Postings Accounts Receivable Payable

36 Business Process Integration
Produce for Sales Order Pre-Sales Activity Sales Order Delivery Billing Planned Order Production Order Completion Confirmation In Inventory Plant or Warehouse Availability Check NO YES Goods Issued to Delivery Goods from Production Order General Ledger Accounts Inventory Postings Accounts Receivable Payable Issue Goods to Production Order Procurement Cycle for required materials

37 Procurement Process Purchase Requisition Order Notify Vendor Payment
to Vendor Notify Vendor Shipment Invoice Receipt Goods Order

38 Process Integration Purchase Requisition Purchase Order Run MRP
Procurement Process Purchase Order Run MRP Sales Process Goods Receipt Sales Order Entry Check Availability Invoice Receipt Pick Materials Payment to Vendor Receipt of Payment Post Goods Issue Invoice Customer

39 Process Integration Purchase Requisition Purchase Order Run MRP
Procurement Process Purchase Order Run MRP Sales Process Goods Receipt Sales Order Entry Check Availability Invoice Receipt Pick Materials Payment to Vendor Receipt of Payment Post Goods Issue Invoice Customer

40 Process Integration Purchase Order Purchase Requisition Procurement
Convert Production Proposal Goods Receipt Production Process Schedule and Release Run MPS w/MRP Invoice Receipt Sales Process Goods Issue Check Availability Payment to Vendor Sales Order Entry Completion Confirmation Quality Inspection Pick Materials Goods Receipt Order Settlement Receipt of Payment Post Goods Issue Invoice Customer

41 Process Integration Purchase Order Purchase Requisition Procurement
Convert Production Proposal Goods Receipt Production Process Schedule and Release Run MPS w/MRP Invoice Receipt Sales Process Goods Issue Check Availability Payment to Vendor Sales Order Entry Completion Confirmation Quality Inspection Pick Materials Goods Receipt Order Settlement Receipt of Payment Post Goods Issue Invoice Customer

42 Process Integration Purchase Order Purchase Requisition Procurement
Auto Gen or Manual Purchasing agent Purchase Requisition Convert Production Proposal Receiving Clerk Goods Receipt Production Process Schedule and Release Production Planner Plant Manager Run MPS w/MRP Accounts Payable Invoice Receipt Sales Process Goods Issue Sales Assistant Check Availability Sales Person Shop Foreman Quality Inspector Payment to Vendor Sales Order Entry Completion Confirmation Quality Inspection Pick Materials Goods Receipt Warehouse worker Order Settlement Receipt of Payment Post Goods Issue Accounts Receivable Invoice Customer Shipping Supervisor

43 Business Process Overview
The previous slides show a road map for Business Process Overview. There are many more components of SAP A good way to start is with the Enterprise Core Competency, the ECC Integrate these concepts into your courses to reinforce the material that you are already teaching

44 Up Next: Introduction to GBI (GBI Day 1 ppt.)
Learn how two bicyclists from two countries merge their respective companies together to form Global Bike Incorporated

45 Up Next: Hosting Centers and Cases for the Classroom

46 Questions to this point?

47 Thank You! Contact information: Tom Wilder


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