Category Archives: SAP Modules

SAP BUSINESS ONE

The SAP Business One application integrates all core business functions across entire company – including financials, sales, customer relationship management, inventory, and operations.

SAP Business One software includes:

  • Financial management – Automate, integrate, and manage all your financial and accounting processes. Read the brief on financials management (PDF, 243 KB).
  • Warehouse and production management – Manage inventory across multiple warehouses, track stock movements, and manage production orders based on material requirements planning. Read the brief on warehouse management (PDF, 357 KB).
  • Customer relationship management – Grow customer profitability and increase customer satisfaction with effective sales and opportunity management, and after-sales support. Read the briefs on CRM (PDF, 1.4 MB) and service management (PDF, 1.79 MB).
  • Purchasing – Automate your entire procurement process from purchase order to vendor invoice payment. Read the brief on purchasing management (PDF, 278 KB).
  • Reporting – Act on instant and complete information with comprehensive, real-time reports. Read the brief on using SAP Business One with SAP Crystal solutions (PDF, 453 KB).

The Solution Benefit With an SAP Business One solution as follows:

  • Improve efficiency for a stronger bottom line – Centralize and integrate your entire business – across sales, inventory, purchasing, operations, and financials – in one system, eliminating redundant data entries, errors, and costs.
  • Focus on growing your business – Streamline operations from end to end, so you can focus on making your business more profitable.
  • Make smarter, faster decisions – Put your business information into a single data source, so you can instantly drill down to complete, up-to-date information – and so your people can respond quickly to customer needs and be more empowered to make decisions.
  • Get faster time to value – Be up and running within two to eight weeks with a single application. The intuitive user experience minimizes user training and reduces the cost of ongoing IT support.
  • Support your changing needs – With easy-to-use customization tools and over 550 add-on solutions provided by our software solution partners, SAP Business One can be flexibly tailored and extended to meet your specific business needs.
  • Connect headquarters, subsidiaries, and business partners in one seamless network – Better serve your customers and gain operational efficiency with affordable, right-sized solutions to help manage information flow and harmonize business processes.

Business Benefits

  • Reduce cost and increase scale of manufacturing with a comprehensive application that delivers all the core functionality needed to support your manufacturing operations.
  • Optimize inventory through better resource planning and production management.
  • Execute compliance to industry, quality and regulatory standards with clear, transparent data throughout the supply chain.
  • Increase sales by reducing stock-outs, so you have the right items on hand when customers come to the store.
  • Improve customer satisfaction and loyalty with faster response to customer needs.
  • Reduce inventory costs through accurate and streamlined inventory and distribution processes.
  • Become more agile than your competitors by anticipating customer demand and responding quickly.
  • Broaden your market reach with online presence and sales.
  • Anticipate customer needs based on more timely information
  • Enhance customer service and order fulfillment
  • Streamline order-to-cash process through automated supply and distribution chain.
  • Reduce costs through optimized inventory management – reduced excess supply or waste, paper work, and costly shipping errors
  • Improve profit margins with efficient quoting and improve decision making through greater visibility into the true costs of orders.
  • Increase customer satisfaction through faster and more accurate order processing.

source: sap.com

SAP Business One software includes:

  • Financial management – Automate, integrate, and manage all your financial and accounting processes. Read the brief on financials management (PDF, 243 KB).
  • Warehouse and production management – Manage inventory across multiple warehouses, track stock movements, and manage production orders based on material requirements planning. Read the brief on warehouse management (PDF, 357 KB).
  • Customer relationship management – Grow customer profitability and increase customer satisfaction with effective sales and opportunity management, and after-sales support. Read the briefs on CRM (PDF, 1.4 MB) and service management (PDF, 1.79 MB).
  • Purchasing – Automate your entire procurement process from purchase order to vendor invoice payment. Read the brief on purchasing management (PDF, 278 KB).
  • Reporting – Act on instant and complete information with comprehensive, real-time reports. Read the brief on using SAP Business One with SAP Crystal solutions (PDF, 453 KB).
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SAP ABAP

ABAP stands for Advanced Business Application Programming and it’s a high level programming language used in SAP for the development and other customization processes. Normally a transaction code is used for executing an ABAP program. For example we can use the transaction code VA01 for creating a sales order.

ABAP used to be an abbreviation of Allgemeiner Berichtsaufbereitungsprozessor, the German meaning of “generic report preparation processor” , but was later renamed to Advanced Business Application Programming. ABAP was one of the first languages to include the concept of Logical Databases (LDBs), which provides a high level of abstraction from the basic database level(s).ABAP is one of the many application-specific fourth-generation languages (4GLs) first developed in the 1980s. It was originally the report language for SAP R/2, a platform that enabled large corporations to build mainframe business applications for materials management and financial and management accounting.

ABAP syntax
This brief description of the ABAP syntax begins inevitably with the ubiquitous “Hello World” program.
“Helloworld”

REPORT TEST.
WRITE ‘Hello World’.

This example contains two statements: REPORT and WRITE. The program displays a list on the screen. In this case, the list consists of the single line “Hello World”. The REPORT statement indicates that this program is a report. An alternative statement, PROGRAM, would be used for a module pool.
Formatting rules:

The basic formatting rules of ABAP are simple:

  •     Every ABAP statement must end in a period
  •     Tokens within a statement must be separated by at least one space
  •     An end of line is equivalent to a space
  •     Statements and keywords are not case-sensitive

The “Hello World” program could be legally rewritten as follows:

REPORT tESt. WRITE
‘Hello World’ .

Comments

ABAP has 2 ways of defining text as a comment:

An asterisk (*) in the leftmost column of a line makes the entire line a comment
A double quotation mark (“) anywhere on a line makes the rest of that line a comment

Example:

***************************************
** Program: BOOKINGS                 **
** Author: Joe Byte, 07-Jul-2007     **
***************************************

REPORT BOOKINGS.

* Read flight bookings from the database
SELECT * FROM FLIGHTINFO
WHERE CLASS = ‘Y’       “Y = economy
OR    CLASS = ‘C’.      “C = business
(…)

SAP Materials Management (SAP MM)

The Materials Management module (SAP MM) consists of all master data, system configuration, and transactions to complete the Procure to Pay process. This process map spans from MRP generated procurement proposals through final invoice receipt and verification.

SAP Materials Management Components or Sub-Components:

  • Vendor Master and Material Master data
  • Consumption Based Planning
  • Purchasing
  • Inventory Management
  • Evaluation of Materials
  • Invoice Verification

Procure to Pay business process associated with the SAP MM module:

Subcomponents of the SAP Materials Management (SAP MM) Module:

  • Purchasing
  • Inventory Management
  • Logistics Invoice Verification
  • Physical Inventory
  • Material Valuation
  • Material Requirements Planning (MRP)
  • External Services Management

This is brief review of the components and processes associated with the SAP MM module.

Source: erptips.com

SAP Production Planning (SAP PP)

Production Planning consists of all master data, system configuration, and transactions to complete the Plan to Produce process. It includes the following information and processes:

  • Material Master, Bill of Material, Routing and Work Center data
  • Sales and Production Plans
  • Long Term Planning
  • Demand Management
  • Material Requirements Planning (MRP)
  • Capacity Planning
  • Production Orders
  • KANBAN

Diagram of the typical Plan to Produce business process associated with the SAP PP module:

SAP Production Planning (SAP PP) is compromised of the following modules:

  • Master Data – includes the material master, work centers, routings and bill of materials.
  • SOP – Sales and Operations Planning (SOP) provides the ability to forecast sales and production plans based on historical, current and future data.
  • DRP – Distribution Resource Planning allows companies the ability to plan the demand for distribution centers.
  • Production Planning – includes material forecasting, demand management, long term planning and master production scheduling (MPS).
  • MRP – Material Requirements Planning relies on demand and supply elements with the calculation parameters to calculate the net requirements from the planning run.
  • Shop Floor Control – includes the processing of production orders, goods movements, confirmations and reporting tools for production.
  • Capacity Planning – evaluates the capacity utilized based on the work centers available capacity to show capacity constraints.
  • Repetitive Manufacturing – in repetitive manufacturing, the manufacturing process is usually simple in that the same products are produced over a long period of time. This module provides the transactions and business process for companies to run repetitive manufacturing in SAP.
  • KANBAN – is a process of replenishment based on a pull system using KANBAN cards to generate the replenishment cycle.
  • Product Cost Planning – is the process of evaluating all the time values and value of component materials to determine the product cost.

This is brief review of the components and processes associated with the SAP PP module.

Source: erptips.com

SAP Sales and Distribution (SAP SD)

The Sales and Distribution (SAP SD) consists of all master data, system configuration, and transactions to complete the Order to Cash process. It includes the following information and processes:

  • Customer Master and Material Master data
  • Sales Orders
  • Deliveries
  • Pricing
  • Billing
  • Credit Management

Order to Cash business process associated with the SAP SD module:

Subcomponents of the SAP Sales and Distribution (SAP SD) Module:

  • Master Data
  • Sales Support
  • Pendulum List Indirect Sales
  • Sales
  • Shipping and Transportation
  • Billing
  • Empties Management
  • Credit Management
  • Foreign Trade/Customs
  • Sales Information System

This is brief review of the components and processes associated with the SAP SD module.

Source: erptips.com

SAP Controlling (SAP CO)

The purpose of the Controlling (CO) module in SAP is to provide organizations with a method of slicing and dicing data to view costs from an internal management perspective and provide a view of profitability beyond that of basic financial reporting. This allows the organization to create information in a manner that is tailored to their specific business measurements needs. Controlling allows an organization to:

  • Plan and track overhead costs within the company’s specific organizational structure.
  • Track costs related to specific projects or events and either capitalize those costs or charge them to appropriate departments upon completion.
  • Perform “Activity Based Costing”.
  • Perform Product Costing, measuring production cost and variances.
  • Report profitability by product line, division, or other internal measurement.
  • Report sales and gross profitability by external measures such as market segments or customer groups.

Controlling consists of all master data, configuration, and reporting required to analyze both spend and revenues, both within and across organizations. This includes the following master data:

  • Cost Elements – cost and/or revenue accounts
  • Cost Centers – departmental units
  • Profit Centers – business lines, product lines or divisions
  • Internal Orders – projects or events
  • Functional Area – Cost of Sales Accounting
  • Statistical Key Figures – non financial statistics for allocating or measuring financial costs
  • Activity Types – Labor or other activity costs

Business process associated with the SAP CO module:

Subcomponents of the SAP Controlling (SAP CO) Module:

  • CO-OM – Overhead Management
    – CO-OM-CCA – Cost Center Accounting
    – CO-OM-OPA – Internal Order Accounting
    – CO-OM-CEL – Cost Element Accounting
    – CO-OM-ABC – Activity Based Costing
  • CO-PCA – Profit Center Accounting
  • CO-PA – Profitability Analysis
  • CO-PC – Product Costing

This is brief review of the components and processes associated with the SAP CO module.

Source: erptips.com

SAP Project System (SAP PS)

Project System provides tools to track project milestone, costs and resources. SAP’s Project System module contains tight integration to the Controlling, Human Resources, and Logistics modules. It utilizes personnel records from HR, rolls costs into Controlling and links to materials or customers in the Logistics modules.

Two key objects that define the Project in SAP are:

  • Work Breakdown Structure – defines tasks and assign resources to those tasks
  • Network – defines the dependencies within the Work Breakdown Structure (WBS)

Common processes in Project System include:

  • Tracking costs against WBS elements. These costs can either be from personnel time charged against the project or from materials and/or services procured to support the project.
  • Tracking milestones against key dates defined in the project.

The following diagram illustrates the hierarchy of objects within an SAP Project:

This is brief review of the components and processes associated with the SAP PS module.

Source: erptips.com

SAP Human Resources (SAP HR)

The Human Resources module (SAP HR) consists of all master data, system configuration, and transactions to complete the Hire to Retire (or, as some say, Fire) process. It includes the following information and processes.

SAP Human Resources (HR) Components or Sub-Components:

  • Personnel Management
    – Personnel Administration
    – Recruitment
    – Organization Structure
    – Compensation Management
    – Personnel Development
  • Organizational Management
  • Travel Management
  • Time Management
  • Payroll

Typical Hire to Retire business process associated with the SAP HR module:

This is brief review of the components and processes associated with the SAP HR module.

Source :erptips.com

SAP Financial Accounting (SAP FI)

The Financial Accounting (SAP FI) module in SAP is designed to capture organizations business transactions in a manner that will satisfy external reporting requirements. Local legal considerations are pre-delivered with the system and the ability to manage and report on multiple companies in multiple countries with multiple currencies is part of standard functionality. Integration with Sales and Distribution, Purchasing and Materials Management allows for the ability to select any financial transaction and “Drill Down” to the originating transaction whether it is a purchase Order, Sales Order or material movement.

Financial Accounting includes the following sub-modules:

  • General Ledger (FI-GL)
  • Accounts Payable (FI-AP)
  • Accounts Receivable (FI-AR)
  • Bank Accounting (FI-BL)
  • Asset Accounting (FI-AA)
  • Funds Management (FI-FM)
  • Travel Management (FI-TV)
  • Special Purpose Ledger (FI-SL)

The flexibility of the Finance modules organizational structure gives the module the ability to handle any economic situation. Whether a smaller organization with a single legal entity or a large organization with numerous companies, consolidations and varying legal requirements, the FI module can support and automate most financial postings and reporting. Below is a listing of the main organizational elements in the Finance module:

  • Company Code – Represents a legal reporting entity. There can be numerous company codes within an organization. Each has its own balanced books and reports itself as a single economic entity.
  • Credit Control Area – If credit management is being used, this sets the general parameters for how credit is managed. The credit control area can control credit for a single company code representing a decentralized credit management approach or multiple company codes representing a more centralized credit management approach.
  • Chart of Accounts – The system supports single or multiple charts of accounts providing the ability to record transactions and report financially in many different regulatory environments. A chart of accounts can support multiple Company Codes if necessary.

Business process associated with the SAP FI module:

The Finance Module is designed to record financial transactions in a manner consistent with external reporting. External reporting must be in compliance with a country’s accounting principles and is required for public entities, regulatory agencies and information required by banks and other lenders. The module also handles legal consolidations, receivables, payables, fixed assets as well as banking functions if required.

This is brief review of the components and processes associated with the SAP FI module.

Source : erptips.com