SAP Basis Training

Niels Bies
Bram van den Burg
Anne van de Burgt
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 Table of content

Chapter Description Chapter Description

1. 3 Tier client server architecture 11. Purchasing Process

2. ERP production connections 12. Production order process
3. Combined landscape 13. Financials
4. Product lifecycle management (PLM) 14. Human capital management (HCM)
5. Organizational structure 15. Software-as-a-service (SAAS)
6. Warehouse 16. SAP S/4 HANA
7. Sales organization 17. Training material
8. Sales order process
9. Planning process overview
10. Purchasing organization

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 3 Tier client server architecture

SAP GUI
Application
client
These components are responsible for the presentation of data for
users and the receiving of user entries.
SAP screen
personas
• SAP GUI is used for SAP ERP.
Netweaver
Presentation layer business client
WEB • NetWeaver business client is used for SAP ME.
Web dynpro
ABAP

SAP Fiori Apps

All SAP ERP all modules run on SAP ABAP stack. SAP NetWeaver
Application Server (ABAP Stack) is part of the SAP NetWeaver portfolio
Application layer ABAP Stack ERP/R3 and represents the ABAP-based technical basis for many SAP products.
(SAP netweaver
application server) Java stack WEB Java Stack is currently being on Web based front ends and Stand alone
java portal, the java doesn't direct access to ABAP database, because
the business logic is kept in intact.

Persistent data is held in a database. The database is accessed by ABAP

programs through the database interface.
Persistence Layer Any database ERP/R3
• Oracle data base is used within Philips.
• SAP 4HANA requires HANA database

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 ERP Production connections

SAP ERP is an integrated enterprise resource planning (ERP) package for

large and medium-sized companies. SAP ERP is the successor to SAP R / 3
and SAP R / 2. It is also marketed by SAP AG.

ERP SAP ERP consists of a so-called 'Enterprise Core Component' (ECC) with
the following 4 components;

ERP ERP SAP ERP Financials, the successor to the FI / CO modules of SAP R / 3
SAP ERP Human Capital Management, the successor to the HR modules of
SAP R / 3
ERP SAP ERP Operations, the successor to the PP, MM and SD modules of SAP
R / 3 SAP ERP Corporate Service

When a business uses several ERP systems the communication between

them can get a mess.
ERP ERP • Double data can be created
• Same parts with different 12nc’s
ETL • Etc.

SAP Business Warehouse (BW) integrates data from different sources,

transforms and consolidates the data, does data cleansing, and storing of
data as well. It also includes data modeling, administration and staging
area.
BW
(Business The communication between the ERP systems and/or BW is
warehouse) ETL = Extraction, Transformation and Loading.

The dream is only one ERP system with all data stored.

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 Combined landscape

Within SAP there are also a lot of combined landscapes such as:

SAP Supplier Relationship Management

MDM Automate, simplify, and centralize your procure-to-pay process flow. SAP
Supplier Relationship Management supports the full e-procurement cycle:
from source- and purchase-to-pay to spend and supplier performance
management.
ERP SRM
SAP Customer relationship management (CRM) applications have been
Process
initially an integrated on-premise software manufactured by SAP SE which
Integration targeted business software requirements for marketing, sales and service of
PI ➔PO midsize and large organizations in all industries and sectors.

SAP Business Warehouse (BW) integrates data from different sources,

CRM transforms and consolidates the data, does data cleansing, and storing of data
SSO as well. It also includes data modeling, administration and staging area.

Single sign-on (SSO) is a property of access control of multiple related, yet

independent, software systems. With this property, a user logs in with a single
ID and password to gain access to any of several related systems.
BW
(Business Solution SAP Solution Manager is a central support and system management suite
warehouse) manager provided to SAP's customers as part of their license agreement. As an SAP
system landscape may include a large number of installed SAP and non-SAP
systems, SAP Solution Manager is intended to reduce and centralize the
management of these systems as well as end-to-end business processes.

SAP NetWeaver Master Data Management

Provides capabilities to consolidate master data from heterogeneous sources
into a centralized repository and manage it.

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 Product Lifecycle Management (PLM)

SAP Product Lifecycle Management (SAP PLM) enables management of the life cycle of a
product using various processes.

The goal of SAP PLM is to support the entire life cycle. The life cycle of a product includes
product development, procurement, and service. Starting in product development, the
product data that is gathered is used for all subsequent processes. This enables other
areas, such as SAP Supply Chain Mangement, to benefit from the data.
Production
SAP PLM ofers all the functionality you need for integrated product and asset
management. Features and functions of PLM include the following:
- Program and project management
PLM - Lifecycle data mangement
- Lifecycle collaboration
ERP - Quality management
- Enterprise asset management
- Environment, health and safety management

Procurement Sales Order

Management

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 Organizational structure
Client
- Highest hierarchical level in SAP
Client - On client level the material number, material description and other
basic data is defined (Basic Data 1 & 2 in MM03)
- Data can be client-specific or cross-client
- e.g. 910 in Best

Company Code
Company Company - Legal accounting unit representing the central organizational
Code Code element of financial accounting
- A Company Code can have many plants
- On Company Code level the tax law, fiscal calendar, local currency
and other financial data is defined
- For material movements between Plants in the same Company
Code no financial settlement document is required. Between Plants
Plant Plant Plant in different Company Codes it is.
- E.g. NL9A in Best

Plant
- Central organizational element of production
Storage Storage Storage Storage - A plant can manufacture product, distribute product or provide
Location Location Location Location services
- Can only be assigned to 1 Company Code
- E.g. NL92 in Best

Storage Location
- Administrative warehouse in SAP where inventory is maintained
- Inventory is moved in via MIGO Goods Receipt (MIGO_GR)
- Inventory is moved out via MIGO Goods Issue (MIGO_GI)
- E.g. OXB1 in Best

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 Warehouse

Warehouse Number
- A complete warehouse is defined in a Warehouse Number
- e.g. BS1 in Best

Staging Area
- Used for interim storage of goods in the Warehouse
- Area close to the door
Staging
Storage Type - Used for e.g. goods receipts and goods issues.
Area
Storage Bins Storage Type
Warehouse Number . - A Storage Type is a storage area defined in WM for a Warehouse
Number
- Subdivision of a warehouse
- Contains Storage Bins
- E.g. QL9, CL9, QF in Best

Storage Bin
- Smallest available unit of space
- Describes the position of the goods in the Warehouse
- The goods in a Storage Bin is called Quants
- E.g. XA01A1, XF04L4, XF-LABEL1G in Best

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 Sales organization

Sales Organization
Company - Central organizational element in sales order management
Code - Created to link customers, materials, pricing conditions and
delivering plant assignments together
- Contains pricing agreements

Distribution Channel
Sales Sales - Defines how the products reach customers
Organization Organization - Possible to use multiple Distribution Channels
- E.g. service, direct sales, internet

Division
- Represents a specific product or product groups
Distribution - Each material is linked to a Division in the material master
Division
Channel
Sales Area
- A combination of Sales Organization, Distribution Channel and
Division
- Required to process any sales transactions
Sales Area
- Contains what can be sold, how and where

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 Sales order process

The sales order processing (or order-to-cash) scenario describes the complete process.

Sales Order Management includes the following processes and basic functions:
Payment processing
8 1 Sales Order
1. Sales order: The sales order can adopt information from the pre-sales documents (a
quotation or an inquiry). Sales scheduling agreements or sales contracts (long-term
Billing 7 sales agreements) can also be created with a reference to a sales order and are
supported by the sales process steps. During creation of the sales order, the
Order 2 Availability Check
availability of the material is checked to v=confirm the customer’s requested
Processing
Goods
6 delivery date.
Issue
3 Outbound Delivery 2. Availability check: The availability of requered material is confirmed.
3. Outbound delivery: An outbound delivery is the basis for a process where the goods
are physically moved, as well as for the posting of the goods issue. Picking can be
5 4 Transportation fulfilled using the wharehouse management system, and transportation is planned
Picking and carried out.
4. Transportation: Transportation includes the selection of the vendor to transport
the finished goods to the customer.
5. Picking: Take goods from a storage location and stage the goods in a picking area,
where the goods are prepared for shipping.
6. Goods issue: Warehouse stock for the delivery is reduced and the value of the stock
is posted to the balance sheet account in inventory accounting.
7. Billing: Calculate pricing and taxes and check credit limits. Invoice the sales order.
8. Payment processing: Create the posting in financial accounting.

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 Planning process overview
Sales & Master Material
Demand Manufacturing
Operation Production Requirements
Management Excecution
Planning Scheduling Planning

A MPS
Master Production Scheduling (MPS)
- Critical items can be planned with extra attention
- The procedure ensures that the instabilities in planning are kept to
a minimum
C MPS
B - MPS is an optional step in the planning process
- Possible to choose planning layer (see picture)
- Medium-term planning

Material Requirements Planning (MRP)

D E MRP - Detailed planning of replenishment schedules for required
components
- The output is planned order or a purchase requisition
- Planning of the whole Bill of Material (BOM)
- Short-term planning
Sales & Operation Planning (S&OP) - MRP run creates the following:
- Generate sales plans and production plans using forecast values - Planned orders
- Planned quantities of a product over a given period of time, not - Purchase requisitions
created on the basis of a customer requirement - Schedule lines
- Long-term planning
Manufacturing Execution
Demand Management - Creation and release of a production order, goods issues of
- Forecasting functionality is connected with production scheduling components, confirmation of production activity, and goods
- The requirements of quantities and dates for finished products are receipts of the finished goods
based on the plans from the S&OP

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 Purchasing Organization

Company Purchasing Company Purchasing Organization

Code Organization Code - Responsible for procuring materials or services for one or more
plants
- Created to link vendors, materials and purchase price conditions
together
- - Within the Purchasing Organization, a purchasing info records
Plant Plant (PIR) establishes the costs of a purchased part by a plant and a
vendor

Centralized Purchasing Organization Centralized Purchasing Organization

- One purchasing organization for all the plants

Distributed Purchasing Organization

Company Company - Multiple purchasing organizations each responsible for different
Code Code plants

Purchasing Purchasing
Organization Organization

Plant Plant

Distributed Purchasing Organization

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 Purchasing process

1. Determine material requirements

Payment processing
8 1 Demand determination 2.
3.
Identify sources of supply
Compare quotations
4. Create purchase orders, purchase order adopts information from
Invoice verification 7 the requisition or the quotation

Procurement
2 Source determination 5. Track orders, system provides up-to-date status of all purchase
requisitions, quotations and purchase orders
Goods receipt 6 3 Supplier selection
6. Confirm goods received
7. Check and match invoice for processing
8. Process payment to the supplier
5 4 Purchase order processsing
Order monitoring

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 Production order process

The Production Process includes the following steps:

1. Production planning: Determine production requirements and ensure
Goods Receipt
8 1 Production Planning
sufficient manufacturing capability.
2. Order Creation: Create the production order.
Confirmations
7 3. Order release: Release the production order to check availability of
required components and production tools.
Manufacturing
2 Order Creation
4. Order printing: Print the production order for the shop floor.
5. Material Staging: Issue material to use in production Order Execution:
Order Execution 6 3 Order Release Execute the production Order.
6. Confirmation: Confirm the production Order.
7. Goods Receipt: Post the goods receipt.
5 4 Order Printing
Material Staging

Production Orders:
The production order is the central data object in shop floor control and
manufacturing execution. The production order contains all data relevant
to production objectives, material components, required resources, and
costs. A normal production order covers the demand for a single material
or product. You can produce multiple products jointly in one production
order (coproducts) and distribute incurred costs between the different
products.

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Financials
SAP Enterprise Resource Planning
SAP ERP Financials, which is part of the SAP ERP application, combines
care accounting and financial reporting capabilities with various financial
functions.
Financial functions include the following:
- Financial Supply Chain Management
- Treasury Management
- Performance Management
- Compliance Management

Financial Accounting Details

Company-wide control and integration of financial information is essential
to strategic decision making. SAP ERP Financials gives you the ability to
centrally track financial accounting data within an international framework
of multiple companies, languages, currencies, and charts of accounts.

Financial Accounting Application

Financial accounting focuses on the general ladger (G/L), the processing of
receivables and payables and Asset Accounting. Inportant tasks of financial
accounting include recording monetary and value flows and evaluating
inventories.
Financial accounting includes the following:
- General ledger
- G/L accounts
- Accounts payable
- Accounts receivable
- Asset Accounting
- Accountng Standards
- SAP Consolidation

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 Human Capital Management (HCM)

Payroll Organizational With SAP ERP Human Capital Management (SAP ERP HCM) you can maximize the value of
Management your employess and align employee skills, activities and incentives with business objectives
Benefits
and strategies by using tools to manage, measure and reward individual and team
Talent contributions.
Time Management
Management Order SAP ERP HCM includes the following processess and functions:
Personnel Processing SAP E-Recruiting - Management of the organizational and personnel structures
Cost Planning - Management of employees for their entire time with the company (Talent)
Employee
- Management of vacant positions and hiring processes to find the best-qualified talent
Self Service Personnel to those positions (E-recruiting)
Development - Development of employee skills
Manager Training and - Ttraining courses to enable employees to devlop their skills and bridge any gaps
Self Service Event Management between position requirements and their abilities.
- Facilitates the empowerment of employees to maintain their own data (Manager and
Employee Self-Service)
- Planning activities for budget generation (Personnel Cost Planning)
- Tracking of employee time (attendences and absences)
- Payment of employees and participation in benefits programs

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Software-as-a-service (SAAS)
SAP software-as-a-service (SaaS), cloud based applications is the best practice for SAP.
Rapidly deploy the latest technologies and nurture innovation.

Benefits:
•Fast implementation time, so you can quickly deliver the features your users want
•Reduced workload, as the provider is responsible for operating and maintaining
hardware and software
•Flexibility through contracts based on subscription and the pay-per-use principle
rather than traditional licensing
•Scalability to support changing business requirements, operational innovation, and
company expansion and diversification

The following cloud solutions are currently available:

Cloud ERP / Cloud Procurement / Cloud Supply Chain / Cloud Analytics /

Cloud HR / Cloud CRM / Cloud Financial Management

There are 2 more solutions offered by SAP:

SAP platform-as-a-service (PaaS)

• A platform where the user can build intelligent cloud apps

SAP infrastructure-as-a-service (IaaS)

You can choose from several providers through SAP HANA Enterprise Cloud, for an
end-to-end private managed cloud solution.

Some of the available providers are:

• Amazon Web Services (AWS)
• Microsoft Azure
• Google Cloud Platform

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 SAP S/4 HANA

SAP S/4HANA is a new business suite and the biggest innovation since SAP R/3.
SAP S/4HANA delivers simplications and innovations to help business run simple in the digital economy.

The big difference between SAP ERP and SAP S/HANA is the database:
- SAP ERP: you can use any database (Philips uses Oracle for example)
- SAP S/4HANA: you need to use the HANA database
The HANA database is completly In-memory platform and therfore very fast (real-time information).

After 2026 SAP will not support SAP ERP anymore, so in futher we need to transfer to SAP S/4HANA.

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 Training material
Philips University E-learnings:

- SAP ECC Navigation in Order to Cash

- Introduction to the Process Framework in Order to Cash
- Functional Application to Management in SAP ME

- APICS CPIM Basics of Supply Chain Management (Part 1 of 4): Introduction to Supply Chain Management
- APICS CPIM Basics of Supply Chain Management (Part 2 of 4): Demand Management
- APICS CPIM Basics of Supply Chain Management (Part 3 of 4): Transformation of Demand into Supply
- APICS CPIM Basics of Supply Chain Management (Part 4 of 4): Supply

Philips University Training Documents:

Engineering
- Factory Engineering in SAP MBP
- Configuration Management in SAP MBP
- Service Innovation Engineering in SAP MBP
SC Planning
- Production Planning in SAP MBP
SC Physical Distribution
- Inventory and Warehouse reporting in SAP MBP
- Logistic Execution in SAP MBP
Operational Buyer
- Purchasing in SAP MBP
Quality & Regulatory, Compliance
- Quality Management in SAP MBP
SC Order Management
- Order Management in SAP MBP Factory Best QMS
Plant Management
- Plant Maintenance in SAP MBP https://share.philips.com/sites/STS020181219135505/SitePages/Home.aspx

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