1. Introduction to SAP Tom Wilder, Department of Accounting and MIS California State University, Chico

2. INTRODUCTION TO SAP Part 3: ERP Structure © SAP 2009 / Page 2

3. 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. 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. © SAP 2009 / Page 3

4. SAP Generic Corporate Structure Client – a detached, individual, customizable working environment Company – an independent legal entity with its own income statement and balance sheet Plant – the entity to which all logistical data are linked Storage Location – used for registration of materials into stock © SAP 2009 / Page 4

5. Sales and Distribution Client © UCC Magdeburg © SAP 2009 / Page 5

6. Sales and Distribution Client Credit Control Area 1000 CCA 3000 © UCC Magdeburg © SAP 2009 / Page 6

7. Sales and Distribution Client Credit Control Area 1000 CCA 3000 CC 1000 CC 2000 CC 3000 © UCC Magdeburg © SAP 2009 / Page 7

8. Sales and Distribution Client Credit Control Area 1000 CCA 3000 CC 1000 CC 2000 CC 3000 SO Heathrow 2000 Sales Organization Frankfurt 1000 SO Philadelphia 3000 SO B 1020 SO Denver 3020 © UCC Magdeburg © SAP 2009 / Page 8

9. Sales and Distribution Client Credit Control Area 1000 CCA 3000 CC 1000 CC 2000 CC 3000 SO Heathrow 2000 Sales Organization Frankfurt 1000 SO Philadelphia 3000 SO B 1020 SO Denver 3020 SOff HR 2000 SOff HH 1010 Sales Office F 1000 SOff B 1020 SOff S 1030 PH 3000 CH 3010 DE 3020 SD 3030 PH 3000 CH 3010 DE 3020 SD 3030 © UCC Magdeburg © SAP 2009 / Page 9

10. Sales and Distribution Client Credit Control Area 1000 CCA 3000 CC 1000 CC 2000 CC 3000 SO Heathrow 2000 Sales Organization Frankfurt 1000 SO Philadelphia 3000 SO B 1020 SO Denver 3020 SOff HR 2000 SOff HH 1010 Sales Office F 1000 SOff B 1020 SOff S 1030 PH 3000 CH 3010 DE 3020 SD 3030 PH 3000 CH 3010 DE 3020 SD 3030 Distribution Channel Service 14 * except from SO 1020 und 2000 Distribution Channel Sold for Resale 12 * except from SO 1020 Distribution Channel Final Customer Sales 10 * except from SO 1020 © UCC Magdeburg © SAP 2009 / Page 10

11. Sales and Distribution Client Credit Control Area 1000 CCA 3000 CC 1000 CC 2000 CC 3000 SO Heathrow 2000 Sales Organization Frankfurt 1000 SO Philadelphia 3000 SO B 1020 SO Denver 3020 SOff HR 2000 SOff HH 1010 Sales Office F 1000 SOff B 1020 SOff S 1030 PH 3000 CH 3010 DE 3020 SD 3030 PH 3000 CH 3010 DE 3020 SD 3030 Distribution Channel Service 14 * except from SO 1020 und 2000 Distribution Channel Sold for Resale 12 * except from SO 1020 Distribution Channel Final Customer Sales 10 * except from SO 1020 Division Motorcycles 02 * Except fromS SO 1020 und 3020 Division Service 08 * except from SO 1020 Division Pumps 01 * Except fromS SO 1020 und 3020 © UCC Magdeburg © SAP 2009 / Page 11

12. Financial Accounting Client Operating Concern IDEA Controlling Area 1000 CA 2000 Credit Control Area 1000 CCA 3000 Chart of Accounts INT CoA CAUS CC 3000 (USA) CC 2000 (GB) Company Code 1000 (GER) Business Area 1000 – Mech. Engineering (Pumps) Business Area 3000 – Automotive (Motorcycles) Business Area 8000 – External Services (Services) © UCC Magdeburg © SAP 2009 / Page 12

13. Materials Management (Logistics) HH 1000 B 1100 DD 1200 F 1300 S 1400 Heathrow 2000 CH 3100 A 3200 LA 3300 SE 3400 DA 3500 WI 3600 OL 3700 DE 3800 NY 3000 Werk [WRK] 2000 EKO 3000Purchasing Organization 1000 Einkäufergruppe 000 Chef H. EKG 003 Komponenten & Motorräder EKG 001 Dienst- leistungen Shipping point [VST] 10001100120013001400 10011999 20003200 33003400 3500360037003800 3000 3999 3100 BUK 1000BUK 3000 BUK 2000 Storage location (SL) 0001 0088 0001 00950001 9988 0088 0100 0101 0001 0088 0001 © UCC Magdeburg © SAP 2009 / Page 13

14. Client Chart of Accounts Company Code Plant Fiscal Year Variant Credit Control Area Purchasing Organization Purchasing Group Shipping Point Sales Organization Distribution Channel Division Sales Area Organizational Structure Controlling Area SL10SL20 © SAP 2009 / Page 14 Warehouse Management

15. SAP Generic Corporate Structure Client – a detached, individual, customizable working environment Company – an independent legal entity with its own income statement and balance sheet Plant – the entity to which all logistical data are linked Storage Location – used for registration of materials into stock © SAP 2009 / Page 15

16. © SAP 2009 / Page 16 SAP ERP Central Component 6.0 SAP ERP FI Financial Accounting CO Controlling PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales and Distribution PP Production Planning QM Quality Mgmt. PM Plant Maintenance SM Service Mgmt. Client / Server Integrated Business Solution EC Enterprise Controlling AM Fixed Assets Mgmt.

17. © SAP 2009 / Page 17 Procurement Process Purchase Requisition Payment to Vendor Notify Vendor Shipment Invoice Receipt Goods Receipt Purchase Order

18. Sales Order Entry Check Availability Procurement Process Pick Materials Purchase Requisition Purchase Order Goods Receipt Invoice Receipt Payment to Vendor Post Goods Issue Invoice Customer Receipt of Payment Run MRP Process Integration © SAP 2009 / Page 18 Sales Process

19. Sales Order Entry Check Availability Procurement Process Pick Materials Purchase Requisition Purchase Order Goods Receipt Invoice Receipt Payment to Vendor Post Goods Issue Invoice Customer Receipt of Payment Run MRP Process Integration © SAP 2009 / Page 19 Sales Process

20. Sales Order Entry Check Availability Production Process Run MPS w/MRP Convert Production Proposal Schedule and Release Procurement Process Pick Materials Purchase Requisition Purchase Order Goods Receipt Invoice Receipt Payment to Vendor Completion Confirmation Goods Receipt Quality Inspection Order Settlement Post Goods Issue Invoice Customer Receipt of Payment Goods Issue Process Integration © SAP 2009 / Page 20 Sales Process Pre Sales Activity Vendor selection Create Delivery Document Determine Delivery Method 3-way Match

21. Sales Order Entry Check Availability Production Process Run MPS w/MRP Convert Production Proposal Schedule and Release Procurement Process Pick Materials Purchase Requisition Purchase Order Goods Receipt Invoice Receipt Payment to Vendor Completion Confirmation Goods Receipt Quality Inspection Order Settlement Post Goods Issue Invoice Customer Receipt of Payment Goods Issue Process Integration © SAP 2009 / Page 21 Sales Process Pre Sales Activity Vendor selection Create Delivery Document Determine Delivery Method 3-way Match

22. Sales Order Entry Check Availability Production Process Run MPS w/MRP Convert Production Proposal Schedule and Release Procurement Process Pick Materials Purchase Requisition Purchase Order Goods Receipt Invoice Receipt Payment to Vendor Completion Confirmation Goods Receipt Quality Inspection Order Settlement Post Goods Issue Invoice Customer Receipt of Payment Goods Issue Process Integration © SAP 2009 / Page 22 Sales Person Sales Assistant Production Planner Plant Manager Auto Gen or Manual Purchasing agent Receiving Clerk Accounts Payable Shop Foreman Quality Inspector Warehouse worker Shipping Supervisor Accounts Receivable Sales Process