Lecture 5-IS466

Report
IS 466
ADVANCED TOPICS IN
INFORMATION SYSTEMS
LECTURER : NOUF ALMUJALLY
5 – 10 – 2011
College Of Computer Science and Information, Information Systems Department
Lessons Learnt from Lecture4
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Instance?
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each install of the SAP R/3 software on an individual
application server
How To web-enable the SAP Applications?
Objectives
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Business Process Integration
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Organisational Data
Master Data
Rules
Transaction Data
Organizational Elements of FI
Organizational Elements of CO
Organizational Elements of SD
Organizational Elements of MM
Material Management Module
Business Process Integration
FI
MM
Rules
FI
MM
SD
SD
Business Process Integration
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“The Stool” : a metaphor for the SAP structure
There are four basic components needed to run
execute SAP:
3.
Organizational Data
Master Data
Rules
4.
Transactions
1.
2.
• The Legs which ‘hold up’ the
transactions
• Transactions cannot be run unless
these are setup.
• The legs are typically configured
during the implementation process.
Organizational Data
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A hierarchy in which the organizational units in an
enterprise are arranged according to tasks and
functions.
Are static data and are rarely changed
The definition of organization units is a
fundamental step, it is a critical factor in how the
company will be structured
Data that is defined when the system is installed
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An example is the table with country codes.
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Master Data
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Master data is relatively fixed
Before making the master data configurations, you must
have completely defined the organizational structures
Master data is created centrally and shared among
applications and business processes.
Ex.
• Material master data
contains all information about the materials a company procures,
manufactures, stores and ships
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Purchasing information record
contains information on a specific material and a vendor supplying
this material
Master Data (Con.)
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Vendor master data
contains information about the vendors that supply an
enterprise. It contains data such as:
• the vendor’s name and address
• The currency used for ordering from the vendor
• Names of important contact persons (sales staff)
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General Ledger master data
It serves as a complete record of all business transactions of
a company.
Rules
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Defines the parameters for Master Data and
Transactions
Determines functionality for Master Data and
Transactions
Relatively fixed
Changes as policy changes
Transaction Data
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Data resulting from executing business process steps.
Unlike master data, transactional data is dynamic –
each transaction is unique
An example of transaction data is:
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The goods in a warehouse which change after each purchase order
The company is selling some materials to one of the customer. So they
will prepare a sales order for the customer. When they will generate
a sales order means they are doing some sales transactions. Those
transactional data will be stored in Transactional table.
Con.
SAP Organizational Elements
Definition
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Definition of Organizational Elements:
In the SAP R/3 System, organizational elements form
structures that represent the legal and organizational
views of a company. These views include: accounting,
manufacturing planning and execution, materials
management, and sales and distribution.
In summary, the organizational elements and their
structures form the framework in which all business
transactions are processed.
Mapping our organization to SAP Organizational
data
SAP
Enterprise
Company
Client
Subsidiary
Plant
Factory
Warehouses
Company
Code
Sales
Organization
Sales
Organization
Division
Division
Storage
Locations
Material Management Organizational Structure
Client
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Company
USA
Germany
Purchasing
Organization
N. America
Europe
Plant
Storage
Location
New York
Receiving
California
Warehouse
Hamburg
Receiving
Warehouse
Key Organizational Elements
Client:
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self-contained unit in SAP system with separate
master records and complete set of database tables.
Root of the organizational hierarchy. Highest
organizational element.
The Client represents the enterprise/headquarters
group.
All related companies contained in the same client.
Generally one client per SAP production instance.
Master data is created at the client level.
Financial Accounting View (FI)
Key Organizational Elements - FI
Company Code:
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a distinct legal entity contained within an ERP system.
“Distinct legal entity” - reports its operations independently.
Accounts are managed by company code.
Business transactions are carried out at the company code level.
Client may contain 1 or more company codes.
A company code can be in only 1 client.
Business Area:
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Internal organizational unit used to create balance sheets and
profit and loss statements below the company code
level (optional)
Controlling View (CO)
CO
FI
Controlling Area
Company Code
CO
CO
Cost Center
FI
Business Area
Profit Center
Key Organizational Elements - CO
Controlling Area:
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Independent organizational structure for which costs and
revenues are collected
can have many company codes assigned to it
Profit Center:
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a unit that collects revenue usually product lines (cost centers
are assigned to profit centers)
Cost Center:
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a unit that collects commonly related costs
Sales and Distribution View (SD)
Key Organizational Elements - SD
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Sales Organization: central organizational element controlling
terms of sale to customer.
Distribution Channel: mechanism through which goods and/or
services reach the customer. Ex. wholesale, retail and direct sales.
Division: logical groupings of related products.
Sales Area: a unique combination of a sales organization,
distribution channel, and division.
Materials Management View (MM)
Key Organizational Elements - MM
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Plant: location where goods or services are produced,
maintained, or distributed.
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Storage location: place within a plant where goods are
stored.
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Each plant belongs to only 1 company code.
A company code may have multiple plants.
Each plant must have at least one storage location.
Each storage location belongs to only 1 plant.
Purchasing Organization: part of organization
responsible for procuring materials and services.
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Negotiates purchases, sets pricing conditions, engages in strategic
purchase planning, sets contracts.
Material Management Conditions
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Purchase Organization
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Plant
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PO linked to one, many or no CC
PO has to be linked to one or many plants
PL has to be assigned to a CC
PL can have one to many Storage locations
Storage Location
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Many SL to one PL
Material Management Module
Materials Management Module
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The Materials Management (MM) module is fully
integrated with the other modules of the SAP System.
It supports all the phases of materials management:
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materials planning and control
Purchasing
goods receiving
inventory management
and invoice verification.
Components of Materials Management
Foreign
Trade/
Customs
Valuation
Materials
Management
(MM)
Logistics
Invoice
Verification
Purchasing
Service
Master
Service
Entry
Sheet
Material
Master
Inventory
Mgmt.
Product
Catalog
MRP
Physical
Inventory
Procurement Process (Procure-to-Pay)
Purchase
Requisition
Purchase
Order
Notify
Vendor
Payment
to Vendor
Invoice
Receipt
Vendor
Shipment
Goods
Receipt
Procurement Process
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This is a standard view of the procure to pay
process and the most common.
Procurement Process
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Starts with a requisition that needs to be filled.
The purchase order is the document to fill the need: usually
includes the vendor, cost/price, quantity, terms and other
pertinent information. [ part one of the 3-way match]
Notifying the vendor
The goods are shipped and brought to the organization
The goods are received and then put away [ part two of
the three way match]
An invoice is received from the vendor [third part of the 3way match]
After the tolerances/verification of the 3-way match are
met a payment is made according to the terms agreed to
on the purchase order.
3-Way Match for Payment
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Purchase
Order
Payment
Program
Invoice
Receipt
Debit Credit
Verification
Goods
Receipt
Outcomes of the Procurement Process
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1.
2.
3.
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5.
Purchase Requisition
Purchase Order
Goods receipt
Invoice Receipt
Pay the Vendor
1- Purchase Requisitions
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Internal document
Requesting a certain quantity of material or service
on a certain date
Can be created:
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Manually
Automatically (Materials Requirements Planning (MRP),
sales orders, etc.)
Purchase Requisition (con.)
 What are types of
information required?
• Materials
• Quantities
• Delivery dates
• Plants
• Purchasing groups, etc.
2- Purchase Orders
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Purchase Orders are:
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A formal request to a vendor to provide materials or services
An internal planning and tracking tool.
The process:
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Request for Quotations
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The business sends out RFQ to the vendors and the vendors
respond back with Quotations with prices.
quotation evaluation
Purchase Order
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Printed, fax, sent, etc. to a vendor
Purchase Order (con.)
 What are types of
information required?
•Vendor
•Material and/or service
•Quantity and price
•Delivery dates
•Terms of payment
3- Goods Receipt
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Goods receipt with reference to a purchase order
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Copy data from purchase order
Delivery notification
Invoice verification
Updates purchase order history
Inventory update
Automatic update of General Ledger (G/L) accounts
Goods Receipt (con.)
4- Invoice Receipt
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Invoice Verification
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Matches the vendor’s invoice to the purchase order
and the goods receipt (3-way match)
Matches price and quantity
Updates the purchase order and its history
Updates accounting information
5- Pay the Vendor
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Selects invoices for payment based on the payment
terms in the vendor master or purchase order
Generates payment for released invoices
Updates accounting information
Pay the Vendor (con.)
Questions ??
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What should you do this week ?
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Review the lectures.
Do the Tutorial and submit it online: [email protected]
Due date: Friday.
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Read The assignment to discuss it during the tutorial.
Consult Lecturer if any questions related to the subject.
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