Zander Trinidad

Records to Report Specialist

INTERNAL
 What is ERP?
term used for software solutions that controls whole organizations different
departments. Facilitates company-wide integrated information systems, covering
all functional areas by tightly integrating all functions and under a common
software platform.

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Information Islands

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Why ERP?

For Management – to know what is happening in the company

One solution for better Management

For cycle time reduction

To achieve cost control & low working capital

To utilize latest technologies

To eliminate or reduce the geographical gaps

To satisfy the customers with high expectations

To be competitive or perhaps survival in the market

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Evolution of ERP

1960’s: Inventory Control Systems

1970’s: MRP: Material Requirement
Planning
1980’s: MRPII: MRP & Distribution
1990’s: MRPII → ERP with introduction of other business functions →CRM’s
Today: Web Enabled ERP – Connecting ERP Externally & Cloud Computing

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SAP – Introduction (Systems, Applications and Products in Data Processing )

SAP is the leading Enterprise Information and Management Package

There is n number of ERP softwares in market today, of which SAP is used in medium to large
enterprises.

SAP, Oracle, People soft, Microsoft Dynamics are some of the top ERP software systems.

Consider a large enterprise like Coca-Cola , which has number of divisions under it.
There is a ….
– Financial Department,
– Logistics Section,
– HR, Warehousing,
– Sales and Distribution etc.

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SAP - History

SAP the company was founded in Waldorf, Germany in town of Heidelberg in 1972 by five ex-
IBM engineers. The full name of the parent company is SAP AG

The first releases were R1 and R2 which were mainframe only applications.

SAP started as R/2 that is Real time architecture with 2 servers

In 1979 SAP released SAP R/2 into the German. The first integrated,
enterprise wide package and was an immediate success.

This got changed in later years as R/3 that is Real time architecture with 3 servers.

Towards the end of the 80′s, client-server architecture became popular and SAP responded with the
release of SAP R/3 (in 1992).

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Continuation

The SAP R/3 enterprise application suite for open client/server systems has established a new
standards for providing business information management solutions.

The "R" was for "Realtime data processing“

Each functional division within an organization is divided into modules.

SAP started with financial application.

Modules such as Logistics, HR were added later on.

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What makes SAP different?

SAP takes a different approach.

There is only one information system in an enterprise, SAP All applications access common data.
Real events in the business initiate transactions.

The SAP Basis System is the heart of the data operations and should be not evident to higher level or
managerial users

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 Enterprise Structure Terminology

SAP

Enterprise
Enterprise Client

Company
Company Subsidiary
Subsidiary Company
Code

Factory
Factory Plant

Sales
Sales Sales
Organization
Organization Organization

Business
Business Division
Department
Department Division
Division Area
Area
Storage
Warehouses
Warehouses Locations

© SAP AG 1999

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Important modules in SAP

1) Financial Controlling (FICO)

2) Sales & Distribution (SD)

3) Material Management (MM)

4) Production Planning (PP)

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1) Financial Controlling (FICO)

SAP FI (Finance) : Finance module consider to be the base module

It covers vital areas such as

✓ General Ledger (GL),
✓ Account payable (AP),
✓ Account Receivable (AR) and
✓ Asset Accounting (AA)
Controlling (CO): Controlling is kind of sister module for FI Use for internal controlling and internal
reporting.
✓ Cost Center Accounting (CCA),
✓ Profit center accounting (PCA),
✓ Product costing (PC),
✓ Profitability Analysis (COPA) and
✓ Internal Order (IO).
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2) Sales & Distribution (SD)

It controls customer master data, sales, plants, sales organizations and sales conditions. SD is
predominantly controls sales and it is also heavily tied up with MM.

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3) Human Resource (HR)

HR modules handles all human resource activities such as resource hiring, salary, employee
benefits

It is highly integrated with FI and CO modules.

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4) Project System(PS)

Project system module is a special for project related activities.

It comprise budgeting, planning, forecasting, work breakdown structure for projects.

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SAP R/3 Architecture

SAP R/3 Architecture can be divided into three main

divisions depending on their functionality.
The classification include
1) Database Layer
2) Application Layer
3) Presentation layer

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1) Database Layer

This layer stores all the data that moves through the SAP architecture. The Database layer is further
divided into
⫸Database Management System (DBMS)
⫸Database Server.
⫸Database management System or DBMS, is a set of software programs used to store, update or delete data
from the server.

The user can view and organize information according to one’s criteria.

Enable security features to prevent unauthorized access SAP is compatible with any database
system.

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Continuation… Database Layer

In addition SAP has developed its own database known as HANA, if needed.

The database layer may be combined with the application layer onto a single host or both layers
may exist independently.

It is always better to implement the latter, as this reduces bottleneck in traffic flow.

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2) Application Layer

Whenever a user sends a request from the presentation layer, the logical operation is provided by
the Application Layer.

In theory, only one application server is required to process requests.

But in practise, there will be ‘n’ number of application servers running on various systems.

The load distribution between the application servers is provided by the message servers.

The message servers contain data of how many application servers are currently online and the
distribution of load between them.

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3) Presentation layer

The Presentation Layer consists of the SAP GUI (Graphical User Interface) which acts as an interface
between the user and the other two layers.

User sends request from the Presentation Layer which in turn, gets processed by the Application
Layer.

Data is then retrieved from the Database layer and passed back to the Presentation Layer in the
reverse order.

The control of a program switches from one layer to another during each operation.

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Continuation …. Presentation Layer

When the Presentation Layer is ready, the user can enter input in the screen.

At that time, the Application Layer will not be accessible.

Once the data gets entered, control switches over to the Application Layer.

Until the Application layer completes the processing and initiates a new screen, user cannot input
any data.

The procedure, in which a new screen is presented before the user, is called a dialog step.

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Application Server

Gateway: Acts as a interface for communication medium. RFC protocol is used for communication
between SAP system.

Shared Memory: Represents the common memory in Application Server. All work process has access
to this shared memory.

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Success of SAP R/3

At the heart of SAP R/3 are about 10,000 tables which control the way the processes are executed.

Configuration is the process of adjusting the settings of these tables to get SAP to run the way you
want it to.

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ABAP – Language of SAP

ABAP - Advanced Business Application Programming which can be classified as 4th Generation
Programming Language.

High level programming Language Created by the German software company SAP.

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Questions???

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 THANK YOU !!!

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