SAP TERP10 Part0 - Introduction

Integrated business processes with SAP ERP Script 0: Introduction in SAP ERP

Prof. Dr. Heimo H. Adelsberger Dipl.-Wirt.-Inf. Pouyan Khatami Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

Table of contents Table of contents ........................................................................................................................ 2 Table of figures .......................................................................................................................... 5 Copyright .................................................................................................................................... 7 Very Important advises for processing case studies ................................................................... 8 List of literature ........................................................................................................................ 11 Glossary .................................................................................................................................... 12 1 Introduction: Introduction into SAP ERP ........................................................................ 18 1.1 Course objectives ....................................................................................................... 18 1.2 Course outline ............................................................................................................ 19 2 Theory – Introduction in Enterprise Resource Planning with SAP ERP ......................... 20 2.1 Overview of SAP ....................................................................................................... 21 2.1.1 SAP – the company ............................................................................................ 21 2.1.2 Milestones of SAP history.................................................................................. 21 2.2 SAP R/3, SAP ERP, and SAP NetWeaver ................................................................ 23 2.2.1 SAP R/3 .............................................................................................................. 23 2.2.2 SAP ERP ............................................................................................................ 23 2.2.3 Service-oriented architecture and enterprise service architecture ...................... 27 2.2.4 SAP NetWeaver ................................................................................................. 29 2.2.4.1 People Integration ....................................................................................... 31 2.2.4.2 Information Integration ............................................................................... 32 2.2.4.3 Process Integration ...................................................................................... 33 2.2.4.4 Application Platform ................................................................................... 35 2.2.4.5 Advantages of SAP NetWeaver .................................................................. 37 2.3 Organizational plan of a SAP ERP system ................................................................ 38 2.3.1 Financials: organizational units .......................................................................... 39 2.3.1.1 Company Code ............................................................................................ 39 2.3.1.2 Operating Concern ...................................................................................... 39 2.3.1.3 Controlling Area ......................................................................................... 39 2.3.1.4 Credit Control Area ..................................................................................... 39 2.3.1.5 Chart of Accounts ....................................................................................... 40 2.3.1.6 Business area ............................................................................................... 40 2.3.2 Sales areas: organizational units ........................................................................ 40 2.3.2.1 Sales Organization ...................................................................................... 40 2.3.2.2 Sales office .................................................................................................. 40 2.3.2.3 Distribution Channel ................................................................................... 40 2.3.2.4 Division ....................................................................................................... 40 2.3.2.5 Sales area .................................................................................................... 41 2.3.3 Logistics: organization units .............................................................................. 41 2.3.3.1 Plant ............................................................................................................ 41 2.3.3.2 Storage Location ......................................................................................... 42 2.3.3.3 Shipping Point ............................................................................................. 42 2.3.3.4 Purchasing Organization ............................................................................. 42 2.3.3.5 Purchasing Group ........................................................................................ 42 2.3.4 Human resources: organizational units .............................................................. 42 2.3.4.1 Personnel Area ............................................................................................ 42 2.3.4.2 Personnel Subarea ....................................................................................... 42 2.3.4.3 Employee Group ......................................................................................... 43 page 2 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 2.3.4.4 Employee Subgroup .................................................................................... 43 2.3.5 Additional organizational units in SAP .............................................................. 43 2.4 Master data, transactions, and transaction data ......................................................... 44 2.4.1 Master data ......................................................................................................... 44 2.4.2 Transactions ....................................................................................................... 44 2.4.3 Transaction data ................................................................................................. 45 2.5 Example processes in SAP ERP ................................................................................ 46 2.5.1 Procurement: example process ........................................................................... 46 2.5.2 Engagement management: sample process ........................................................ 47 2.6 Reporting solutions .................................................................................................... 48 3 Excursus – IDES: The SAP model company ................................................................... 50 3.1 The IDES concept ...................................................................................................... 50 3.1.1 Characteristics .................................................................................................... 50 3.1.2 IDES for training ................................................................................................ 51 3.1.3 IDES negotiated agreement ................................................................................ 51 3.2 The IDES group ......................................................................................................... 52 3.2.1 Group areas ........................................................................................................ 52 3.2.2 Company Code 1000 .......................................................................................... 53 3.2.3 Company Code 2000 .......................................................................................... 55 3.2.4 Company Code 2100 .......................................................................................... 55 3.2.5 Company Code 2200 .......................................................................................... 56 3.2.6 Company Code 2300 .......................................................................................... 56 3.2.7 Company Code 3000 .......................................................................................... 57 3.2.8 Company Code 4000 .......................................................................................... 57 3.2.9 Company Code 5000 .......................................................................................... 58 3.2.10 Company Code 6000 .......................................................................................... 58 3.3 IDES Organizational structure ................................................................................... 59 3.3.1 IDES Human Ressources ................................................................................... 59 3.3.2 IDES Financials.................................................................................................. 60 3.3.3 IDES sales and distribution ................................................................................ 61 3.3.4 IDES Logistics ................................................................................................... 62 3.3.5 Conclusion .......................................................................................................... 63 3.4 Information about UCC ............................................................................................. 64 3.5 Summary .................................................................................................................... 64 4 Practical application – Installation and Navigation .......................................................... 65 4.1 Setting up a connection.............................................................................................. 65 4.1.1 Installation of the SAP-GUI ............................................................................... 65 4.1.2 Activating your IP-Address ................................................................................ 69 4.1.3 Creating a Logon-Group Item ............................................................................ 70 4.2 Logging on and off .................................................................................................... 75 4.2.1 Logon ................................................................................................................. 75 4.2.2 Logoff ................................................................................................................. 78 4.3 Navigation in SAP ERP ............................................................................................. 79 4.3.1 SAP ERP Screen ................................................................................................ 79 4.3.2 Navigation .......................................................................................................... 80 4.4 Session concept.......................................................................................................... 83 4.5 SAP ERP help ............................................................................................................ 83 4.6 Data sheet .................................................................................................................. 84 4.7 Navigation unit for SAP ERP .................................................................................... 85 4.7.1 System log-on ..................................................................................................... 85 4.7.2 User-specific settings ......................................................................................... 85 page 3 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 4.8 4.9

Answers to the navigation unit .................................................................................. 88 Summary .................................................................................................................... 91

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Integrated business processes with SAP ERP

Table of figures Figure 1: Milestones of SAP .................................................................................................... 22 Figure 2: SAP R/3 modules: Nicolescu/Wittges 2006 ............................................................ 23 Figure 3: SAP ERP architecture ............................................................................................... 24 Figure 4: Solution map mySAP ERP ....................................................................................... 25 Figure 5: From SAP R/3 to SAP NetWeaver: following: Nicolescu/Wittges 2006................. 26 Figure 6: SAP Business Suite................................................................................................... 27 Figure 7: SAP Enterprise Service Architecture ........................................................................ 29 Figure 8: integrated system landscape ..................................................................................... 30 Figure 9: SAP ERP and SAP NetWeaver ................................................................................ 30 Figure 10: SAP NetWeaver components ................................................................................ 31 Figure 11: SAP Enterprise Portal – central GUI ...................................................................... 32 Figure 12: Integrated SAP MDM ............................................................................................. 33 Figure 13: connection of external systems with SAP XI ......................................................... 34 Figure 14: Attributes and structure of SAP Web AS ............................................................... 35 Figure 15: SAP Web AS as part of distinct SAP systems ........................................................ 36 Figure 16: SAP NetWeaver components ................................................................................. 37 Figure 17: SAP organizational structure: terminology............................................................. 38 Figure 18: SAP organizational structure .................................................................................. 39 Figure 19: SAP sales areas ....................................................................................................... 41 Figure 20: Plants in SAP ERP .................................................................................................. 41 Figure 21: Purchasing organization in SAP ............................................................................. 42 Figure 22: Customer master records: example ......................................................................... 44 Figure 23: Transactions in SAP ............................................................................................... 45 Figure 24: Procurement: example process ............................................................................... 46 Figure 25: Engagement management: sample process ............................................................ 47 Figure 26: Data warehouse concept ......................................................................................... 48 Figure 27: Distinction between operative and informative environment ................................. 49 Figure 28: Overview of IDES group areas: IDES – Das integrierte Modellunternehmen für Forschung und Lehre, 2005 ...................................................................................................... 52 Figure 29: IDES company codes: IDES – Das integrierte Modellunternehmen für Forschung und Lehre, 2005 ........................................................................................................................ 53 Figure 30: company code 1000: Das integrierte Modellunternehmen für Forschung und Lehre, 2005 .......................................................................................................................................... 53 Figure 31: Company Code 2000 (Great Britain): Das integrierte Modellunternehmen für Forschung und Lehre, 2005 ...................................................................................................... 55 Figure 32: Company Code 2100 (Portugal): Das integrierte Modellunternehmen für Forschung und Lehre, 2005 ...................................................................................................... 55 Figure 33: Company Code 2200 (France): Das integrierte Modellunternehmen für Forschung und Lehre, 2005 ........................................................................................................................ 56 Figure 34: Company Code 2300 (Spain): Das integrierte Modellunternehmen für Forschung und Lehre, 2005 ........................................................................................................................ 56 Figure 35: Company Code 3000 (USA): Das integrierte Modellunternehmen für Forschung und Lehre, 2005 ........................................................................................................................ 57 Figure 36: Company Code 4000 (Canada): Das integrierte Modellunternehmen für Forschung und Lehre, 2005 ........................................................................................................................ 57 Figure 37: Company Code 5000 (Japan): Das integrierte Modellunternehmen für Forschung und Lehre, 2005 ........................................................................................................................ 58 Figure 38: Company Code 6000 (Mexico): Das integrierte Modellunternehmen für Forschung und Lehre, 2005 ........................................................................................................................ 58 page 5 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP Figure 39: IDES Industry: Das integrierte Modellunternehmen für Forschung und Lehre, 2005 .................................................................................................................................................. 59 Figure 40: IDES HR: Das integrierte Modellunternehmen für Forschung und Lehre, 2005 ... 60 Figure 41: IDES Financials: Das integrierte Modellunternehmen für Forschung und Lehre, 2005 .......................................................................................................................................... 60 Figure 42: IDES sales and distribution: Das integrierte Modellunternehmen für Forschung und Lehre, 2005 ............................................................................................................................... 61 Figure 43: IDES sales and distribution details: Das integrierte Modellunternehmen für Forschung und Lehre, 2005 ...................................................................................................... 62 Figure 44: IDES logistics: Das integrierte Modellunternehmen für Forschung und Lehre, 2005 .................................................................................................................................................. 62 Figure 45: SAP GUI Installation – Step 1: SAP-System-Screenshot ...................................... 65 Figure 46: SAP GUI Installation – Step 2: SAP-System-Screenshot ...................................... 66 Figure 47: SAP GUI Installation – Step 3: SAP-System-Screenshot ...................................... 66 Figure 48: SAP GUI Installation - Step 4: SAP-System-Screenshot ....................................... 67 Figure 49: SAP GUI Installation – Step 5: SAP-System-Screenshot ...................................... 67 Figure 50: SAP GUI Installation – Step 6: SAP-System-Screenshot ...................................... 68 Figure 51: SAP GUI Installation – Step 7: SAP-System-Screenshot ...................................... 68 Figure 52: Remote-Login – Identification .........................Fehler! Textmarke nicht definiert. Figure 53: Remote-Login – IP-Activation .........................Fehler! Textmarke nicht definiert. Figure 54: Start des SAP Logon ............................................................................................... 71 Figure 55: SAP Logon - Configuration – Step 1: SAP-System-Screenshot ............................ 71 Figure 56: SAP Logon - Configuration – Step 2: SAP-System-Screenshot ............................ 71 Figure 57: SAP Logon - Configuration – Step 3: SAP-System-Screenshot ............................ 72 Figure 58: SAP Logon - Configuration – Step 4: SAP-System-Screenshot ............................ 73 Figure 59: SAP Logon - Configuration – Step 5: SAP-System-Screenshot ............................ 73 Figure 60: SAP Logon – logging on to the SAP system – Step 1: SAP system screenshot .... 75 Figure 61: SAP Logon –logging on the SAP system – Step 2: SAP system screenshot ......... 76 Figure 62: SAP Logon – logging on to the SAP system – Step 3: SAP system screenshot .... 76 Figure 63: SAP license agreement: SAP system screenshot .................................................... 77 Figure 64: SAP Easy Access Menu: SAP system screenshot .................................................. 77 Figure 65: SAP system – logoff: SAP system screenshot ........................................................ 78 Figure 66: Menu bar: SAP system screenshot ......................................................................... 79 Figure 67: System function bar: SAP system screenshot ......................................................... 79 Figure 68: SAP Easy Access title bar: SAP system screenshot ............................................... 79 Figure 69: Application tool bar: SAP system screenshot ......................................................... 79 Figure 70: SAP – Easy Access Menu – detail view 1: SAP system screenshot ...................... 80 Figure 71: Status bar: SAP system screenshot ......................................................................... 80 Figure 72: SAP – Easy Access Menu – detail view 2: SAP system screenshot ...................... 81 Figure 73: SAP – Easy Access Menu – assign to favorites: SAP system screenshot .............. 81 Figure 74: command field: SAP system screenshot ................................................................. 82 Figure 75: SAP – Easy Access Menu – technical names: SAP system screenshot ................. 82 Figure 76: System prompts you to save: SAP system screenshot ............................................ 82 Figure 77: help menu: SAP system screenshot ........................................................................ 83 Figure 78: SAP message: SAP system screenshot ................................................................... 88 Figure 79: Display customer (accounting): SAP system screenshot ........................................ 88 Figure 80: Favorites: SAP system screenshot .......................................................................... 89 Figure 81: Performance Assistant: SAP systems screenshot ................................................... 90 Figure 82: input help, F4 help function: SAP system screenshot ............................................ 90

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Integrated business processes with SAP ERP

Copyright -

This document is mostly based on publications for the TERP10 course “mySAP ERP – integrated business processes“– those parts are subject to the copyright of SAP AG. All figures used within this course are created in the style of the TERP10, if not labeled else wise. Those parts are subject to the copyright of SAP AG. All screenshots used within this document, even if displayed in extracts, are subject to the copyright of SAP AG. Distribution and reproduction of this document or parts of this document in any form is prohibited without the written permission of Prof. Dr. Heimo H. Adelsberger, Dipl.-Wirt.-Inf. Pouyan Khatami, and Dipl.-Wirt.-Inf. Taymaz Khatami.

page 7 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

Very Important advises for processing case studies Please read the following information carefully to prevent problems from occurring while processing the case studies. 1. Make sure that you commence early with processing the case studies. Do not wait and see until the last month of your working time. As experience teaches, this leads to negligence and thus compromises the successful completion of this course. Furthermore, consider that this is a certification course, i.e. you will not receive a confirmation of participation but only a certificate in case of the successful completion of this course. This doesn‟t mean that making mistakes while processing the case studies result in failing the course, but you need to allow extra time for fixing errors (with the assistance of your supervisor). If you leave processing the case studies until the last minute, there will not be time for fixing errors. Only in case of completion without any mistakes, a university certificate will be issued. This is to ensure the quality level of this course. 2. This course covers the content of the SAP-owned course TERP10. Along with theoretic knowledge, you will be practically working with the SAP ERP system. One of our goals is to condition you to successfully pass the certification exam by SAP Education. In case of successful completion of this SAP exam, you will receive the SAP TERP_10_05 certificate. In case of successful completion of all case studies, you will receive a university certificate by the University of Duisburg-Essen. 3. The case studies‟ degree of difficulty provides the possibility of successful completion even without prior knowledge of SAP. You will be instructed clearly for case studies. Case studies provide you both with content-related and methodological knowledge of the SAP functional areas - Procurement, - Material Planning, - Lifecycle Data Management, - Manufacturing Execution, - Inventory and Warehouse Management, - Sales Order Management, - Human Capital Management, - Financial Accounting, - Management Accounting, - Enterprise Asset Management and - Program and Project management. Furthermore, case studies teach you how to deal with SAP and you will gain a profound knowledge of the SAP system. What is more, you will get a theoretical insight into Business Information Warehouse, Strategic Enterprise Management and SAP NetWeaver. 4. Our concept aims at the self-directed processing of case studies. Accordingly, the certification is based on the supposition that participants are able to independently use the SAP system. Hence, please pay attention thoroughly to the introductions in the script before execute transactions (safe). 5. That does not imply that no mistakes may be made. These things happen and that is why you will be continuously supervised by a tutor. In case of any errors during the page 8 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP processing of case studies, immediately abort processing without further change and contact your tutor. Further processing without error correcting may cause irreversible irregularities. A course-specific forum and contact via email are available in case of questions, errors, or technical issues. As a general rule, you should receive an answer to your question on the same day, usually even on week-ends and on public holidays. Submitted data sheets will be marked on a weekly basis, usually on a Sunday. A progress report will be downloadable in the learning environment (forum). 6. Please understand that email queries regarding the SAP course or concerning particular problems can only be answered if sent to the support email address named in the initial email. This applies also to submitting data sheets. 7. Furthermore, we kindly ask you to pay attention to the following rules when errors occur while processing the case studies to ensure an efficient and smooth support so that you can continue processing promptly. - Detailed description of the problem and the corresponding script passage - Summarize all already existing records of the particular data sheet - Mention your three-digit user number and your three-digit client number 8. Further on, please comply with the following naming rules. Non-compliant data sheets will not be accepted. Data sheet 0. Introduction 1. Procurement 2. Material Planning 3. Lifecycle Data Management 4. Manufacturing Execution 5. Inventory and Warehouse Management 6. Sales Order Management 7. Human Capital Management 8. Financial Accounting 9. Management Accounting 10. Enterprise Asset Management 11. Project Management

naming 00-introduction-xyy-zzz-surname.doc 01-procurement-xyy-zzz-surname.doc 02-material_planning-xyy-zzz-surname.doc 03-life_cycle-xyy-zzz-surname.doc 04-manufacturing-xyy-zzz-surname.doc 05-inventory_management-xyy-zzz-surname.doc 06-sales_order_management-xyy-zzz-surname.doc 07-human_capital_management-xyy-zzz-surname.doc 08-financial_accounting-xyy-zzz-surname.doc 09-management_accounting-xyy-zzz-surname.doc 10-enterprise_asset-xyy-zzz- surname.doc 11-project_management-xyy-zzz-surname.doc

Thereby replace: - „xyy“  your three-digit user number (WIPx-yy), which was referred to you at the beginning of this course - „zzz“  the client number that you are using - „surname“  your surname 9. To increase learning progress, it is advisable to always look for and run particular transactions in SAP via the SAP easy access menu (tree structure – you will get to know this during the case studies). Please avoid from the beginning to retrieve transactions by the means of transaction codes. While using the SAP easy access menu, you will implicitly understand the SAP system‟s structure and its interrelation. Accordingly, this will help you in practice to be able to familiarize yourself with a new scope of duties in SAP quickly. 10. Furthermore, please note that you will only install SAP presentation software (SAP GUI) on your computer to access the SAP system. All processes and data storage will be conducted on the UCC system (Magdeburg and Munich, Germany). Consequently, you do not have to worry about your computer-dying (knock on wood). No case study-related data will be stored locally on your computer so that you can access your data anytime and anywhere. page 9 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 11. Your supervising tutor during the case studies and person in charge for the course “integrated business processes with SAP ERP” is Taymaz Khatami. Enjoy this course! Program executive:

Prof. Dr. Heimo H. Adelsberger

Project manager:

Dipl. Wi-Inf. Pouyan Khatami

Course supervisor:

Dipl. Wi-Inf. Taymaz Khatami

page 10 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

List of literature This course‟s content is partially based on the following references. 1. Appelrath, Hans-Jürgen/Ritter, Jörg: SAP R/3 Implementation – Methods and Tools, Springer, 2000. 2. Brinkmann, Sandra/Zeilinger, Alex: Finanzwesen mit SAP R/3 Betriebswirtschaftliches Customizingwissen für SAP R/3 – FI. SAP Press, 1999. 3. Brück, Uwe: Praxishandbuch SAP-Controlling. SAP Press, 2005. 4. Dickersbach, Jörg Thomas/Keller, Gerhard/Weihrauch, Klaus: Produktionsplanung und -steuerung mit SAP. SAP Press, 2008. 5. Edinger, Jörg/Krämer, Christian/Lübke, Christian/Ringling, Sven: Personalwirtschaft mit SAP ERP HCM. SAP Press, 2008. 6. Forsthuber, Heinz: Praxishandbuch SAP-Finanzwesen. SAP Press, 2006. 7. Franz, Mario: Projektmanagement mit SAP Projektsystem. SAP Press, 2007. 8. Hellberg, Torsten: Einkauf mit SAP MM. SAP Press, 2007. 9. Maassen, André/Schoenen, Markus/Werr, Ina: Grundkurs SAP R/3 – Lern- und Arbeitsbuch mit durchgehendem Fallbeispiel – Konzepte, Vorgehensweisen und Zusammenhänge mit Geschäftsprozessen. 3. Auflage, Vieweg 2005. 10. Moos, Eckhard: Kostencontrolling mit SAP - Business Engineering mit SAP-CO, 2002. 11. Nicolescu, Valentin/Wittges, Holger: SAP® HCC Kurs NetWeaver™ 04 basierend auf den SAP NetWeaver Ramp-Up Unterlagen, 2006. SAP-Archiv: mySAP™ ERP – Alle Neuheiten auf einem Blick, 2004. 12. Scheibler, Jochen: Vertrieb mit SAP. SAP Press, 2007. 13. Schrader, Heino/Weidner, Stefan: IDES – Das integrierte Modellunternehmen für Forschung und Lehre 2005 14. Schulten, Ernst: FH Aschaffenburg – Customizing in SAP R/3, 2005 15. Thome, Rainer: Vom Customizing zur Adaption des Standardsoftwaresystems R/3; in: Schriften zur Unternehmensführung; Band 62, Wiesbaden 1998 SAP-Bibliothek 16. Weidner, Stefan: Fallstudie Customizing März 2005 SAP-HochschulkompetenzZentrum Magdeburg 17. http://help.sap.com 18. SAP Education: TERP10 – mySAP Integrierte Geschäftsprozesse. 2006

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Integrated business processes with SAP ERP

Glossary Advanced Business Application Programming: SAP‟s programming language. Application gateway: core processing component of the Internet AGate Transaction Server (ITS) that links the ITS to the R/3 System. Application Link Enabling: enables distribution of business processes and ALE functions to several loosely-linked SAP systems. Describes the ALE message flow between logical systems. The ALE distribution model relationships between logical systems, message types, BAPIs and filters are defined in the distribution model. Application Programming Interface: software interface for application API programs. Advanced Planner & Optimizer: software solution for dynamic supply chain APO management, that is, active processing of the entire logistics chain (supply chain) from the vendor to the customer. Application hosting SAP or SAP partners set up and/or operate systems and applications. ATP Available to Promise AWB Administrator workbench Independent IT system with its own database (for example, mySAP.com Backend system component systems). Business Application Programming Interface: functional interfaces that use BAPI methods from business objects. Business-to-Business Procurement: e-commerce business process that BBP enables employees to purchase goods and services directly from the provider. Business object Abstract program-related representation of actual business objects. SAP Business Information Warehouse: enables the evaluation of data from BW both SAP and non-SAP applications. Corporate Finance Management: SAP initiative that provides a CFM comprehensive package for financial resource management and for the analysis and optimization of a company‟s financial business processes. Common Gateway Interface: the CGI standard interface enables external CGI programs to be started from the World Wide Web – which allows interactive Web pages to be created on the server. Preselected transaction or Web page, of which an updated version is channel displayed either automatically or on request. Bar on the left-hand side of the Workplace browser window that displays ChannelBar the status of the channels available. Classification of transactions States which SAP GUI is supported by a particular transaction. A unit within an SAP System, self-contained from the points of view of Client commerce, organization, and data. Component system Umbrella term for the mySAP.com systems integrated into the Workplace. Collection of single roles. A new menu is structured around the menus from Composite role the single roles. Small text files or character strings that the Web server sends to the Cookie Browser. They are used to register user behavior (passwords, personal data, which pages the user calls up most often) In the context of the Workplace, cookies are one of the options for implementing Single Sign-On. Customer Relationship Management: umbrella term covering all aspects of CRM business relationships with customers with the aim of fostering long-term customer loyalty. Cascading Style Sheet: enhancement that provides greater flexibility in the CSS design of HTML pages and enables you to define frequently-used format templates and font types once only. Central User Administration: a system group includes several SAP systems CUA with several clients. The same users are often created and the same roles assigned in each client. Central User Administration is designed to perform ABAP

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Integrated business processes with SAP ERP

Customizing

Digital certificate

DlAG

DME Drag-and-drop Drag-and-relate

Drag-and-relate servlet EAI viewer

ECL viewer EDI ERP

ESA ESS

EWB Field attribute

Firewall Flow logic

Frame Front End Global user manager

GSS-API

GSS-API V2 GUI HTML HTML Business

these tasks in a central system and distribute the data to the systems in the system group. Settings that you need to make when implementing a system, for example, to adjust the company-independent functions provided to the business requirements specific to your company. Dynamic Information and Action Gateway: protocol for communication between the SAP GUI and the application server (also known as the SAP GUI protocol). Digital document that contains the information required to verify a user‟ s identity and the keys used for encrypting and decrypting messages. The most commonly used format for client certificates is the X.509 standard. In the context of the Workplace, cookies are one of the options for implementing Single Sign-On. Data medium exchange You can use Drag&Drop to select objects in one area (source) with the mouse, and then move them to another area (target). Browser-based navigation tool that enables you to link data from one application with another application. This includes both SAP applications and applications on the Web. Processes information requests that are launched in the mySAP.com Workplace system landscape from a source system using Drag&Relate. Enterprise Application Integration is a set of technologies that allows the movement and exchange of information between different applications and business processes within and between organizations. Optional component for visualizing files in cFolders Electronic data interchange Enterprise Resource Planning: ERP systems ensure enterprise-wide resource planning using targeted workflow management. ERP includes back-office systems such as, for example, production, financial, human resource, sales and materials management systems. Enterprise services architecture Employee Self-Service: enables employees to be actively involved in human resource business processes. Employees can display, create and maintain certain types of data, anytime and anywhere, with an easy-to-use Web browser. Engineering Workbench In Central User Administration, you can specify a field attribute for every element of the user master data. This defines the system in which you must maintain that field entry and how the entry is distributed to the relevant component systems. Protects a local network against unauthorized outside access. Flow logic is a programming model provided by the Internet Transaction Server for creating Web applications, and it is stored as a file in XMLenabled format on the AGate. A WWW page can consist of several HTML pages that are separated by visible or invisible frames. Work station In the Global User Manager, the system administrator in the central system has an overview of all the users in the system group, existing user groups, the systems in the system group, and roles. The system administrator can use this overview to make changes and distribute them to the relevant systems. Generic Security Services: standardized security interface with a standard communication model for abstracting from the individual products and their characteristics. Standard interface for security functions that are used by SNC. Graphical user interface Hyper Text Markup Language. Contains formatting instructions (that the Web browser can interpret) and links to other documents or objects. SAP‟ s own macro language that includes statements used to merge R/3

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Integrated business processes with SAP ERP

HTTP HTTPS IAC

IDES

Incoterms Internet Business Framework

ISAPI ITS

KW

LaunchPad LIS Logical system

LTI Marketplace Migration MiniALV

MiniApp

MPS MRP mySAP Business Suite

NSAPI OLAP OLE OLTP One-Step Business

data dynamically into the HTML business templates of Internet applications that are driven by the Internet Transaction Server (ITS). HyperText Transfer Protocol: protocol between the Web server and the Web client. Hyper Text Transfer Protocol Secure Sockets. Data packets that are transferred using an HTTPS connection are encrypted using SSL. Internet Application Component: easy-to-use application in the mySAP.com Workplace. These components enable even first-time users to execute simple Web applications. Internet Demonstration and Evaluation System that contains model companies to map the relevant business processes in the mySAP.com system. International Commercial Terms Enables the integration of users, applications, and data distribution by supporting XML on all architecture levels. Cross-company business processes can be triggered at Workplace level from various internal applications and external Internet services. Internet Server Application Programming Interface: Microsoft software interface for application programs for creating Web applications. Internet Transaction Server: interface between the component systems and the Internet. The ITS enables Internet and intranet users to communicate directly with SAP systems by starting business transactions, function modules, and reports as Internet applications. It consists of two main components – the WGate and the AGate. Knowledge Warehouse: integrated environment for creating, translating, presenting, distributing, and administering multimedia content. The Knowledge Warehouse provides a comprehensive range of tools and functions to support corporate knowledge management and transfer. Role-specific list of activities in the Workplace containing links to SAP components and to the Web. Logistics information system System on which applications that are integrated and have a common database run. In the SAP environment, this corresponds to a client in an SAP System. Long Term Incentives Electronic marketplace that companies use to provide information, content, and products. Data transfer from one software system to another (for example, master data and transaction data). List display in a small display area of the browser window. The MiniALV (SAP List Viewer) can be used either as a MiniApp in its own right, or as part of another MiniApp. Intuitive, easy-to-use Web application or Web document. When the user starts the mySAP.com Workplace, MiniApps provide the user with an overview of and access to his or her most important information on the initial screen. The WorkSpace can contain several MiniApps. Master Production Scheduling Material Requirements Planning SAP‟ s comprehensive solution concept for optimum integration of all relevant business processes on the Internet. mySAP Business Suite provides seamless, complete integration between SAP solutions and non-SAP systems across all business processes, thereby delivering a complete ebusiness environment. Netscape Server Application Programming Interface: Netscape software interface for application programs for creating Web applications. Online Analytical Processing Object Linking and Embedding: enables objects from one application to be linked to another application. Online Transaction Processing Dovetailing of business processes between business partners, for example,

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Partner profiles

Plug-In Portal PortalBuilder

Profile (Authorization) Protocol Remote system Repository RFC

role

Role maintenance SAP

SAP DCOM

SAP Easy Access SAP GUI for HTML SAP GUI for JAVA SAP GUI for Windows SAP Service Marketplace SAP Web Studio SAPGUI SAProuter SEM

Session handling

Single role Single sign-on

SIS SMTP

using a marketplace. Definition of parameters for the electronic interchange of data with a trading partner using the IDoc interface: Which message is interchanged how in which direction? Additional program that enhances a software system‟ s functionality. Pages that serve as initial screens for Internet users, immediately provide relevant information and form a platform for visiting other Web sites. ITS service responsible for the HTML page structure. The PortalBuilder also takes over role-dependent administration of the LaunchPad and MiniApps. The PortalBuilder communicates directly with the Workplace Server for displaying the Workplace on the front-end. Summarizes authorizations. A user‟ s authorization profiles are stored in the user master record. Collection of rules for formats and types of data transmission between different computer systems. Independent system in a different location, with which your system can communicate. Central storage facility for all ABAP Workbench development objects. Remote Function Call: SAP interface protocol, based on CPI-C. An RFC enables you to call and execute predefined functions in a remote system – or even in the same system. In the mySAP.com context, a role is a collection of activities that are required for participation in a business scenario. The Workplace offers a role-based view of all functions that the user requires for his/her business scenario.. You can use the Profile Generator to create authorization profiles based on the activities (transactions) contained in a role. English: Systems, Applications, & Products in Data Processing German: Systeme, Anwendungen, Produkte in der Datenverarbeitung French: Systèmes, applications et produits dans l'informatique Italian: Sistemi, applicazioni & prodotti nell‟ elaborazione die dati Distributed Component Object Model: standardized basis for creating and integrating distributed software components. External client applications can use DCOM as the infrastructure for communicating with SAP servers, if they need to access mySAP.com components. Navigation menu providing a user-specific initial screen for SAP Systems. GUI that runs in the Web browser and dynamically generates HTML pages based on SAP screens. Platform-independent GUI, requires a JAVA environment on the PC. GUI for 32-Bit-Windows. SAP‟ s global information and communication network. PC tool for developing Internet applications that are driven by the Internet Transaction Server (ITS) and access data from the SAP System. Graphical user interface for SAP SAP program that acts as part of a firewall system. It enables the routing of traffic to and from the SAP network. Strategic Enterprise Management: group of tools and processes enabling managers to introduce company-wide value-oriented management procedures. Session handling in the mySAP.com Workplace enables you to have several sessions open at the same time. The user works with several browser windows, all of which are directly displayed as frames in the mySAP.com Workplace. s. „role‟ Mechanism that removes the need for users to enter a password every time they log on to a system. The user only needs to enter a password once, and can then log on to all systems that are part of the Single Sign-On environment. Sales information system Simple mai1 transfer protocol (internet email)

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Integrated business processes with SAP ERP SNC

SOAP SSL SSO System infrastructure

TCO TCP/IP Template Ticket

Transaction

URL User interface User master record/ User master data VBM WAP

Web application builder

Web browser WebDav WebFlow WebServer WGate

Wizard WML Work item Workflow Workplace Workplace middleware

Workplace middleware Workplace server

Secure Network Communication: software layer in SAP systems that enables them to communicate with an external security product. The external product can protect the communication links between the components of an SAP System. Simple object access protocol Secure Sockets Layer: protocol that uses powerful authentication mechanisms and encryption to protect data transmitted over the Internet. Single sign-on The system infrastructure defines the systems and clients required for the implementation and maintenance processes and their significance, as well as the transport routes between the systems. Total cost of ownership Transmission Control Protocol/Internet Protocol: software protocol that defines communication between computers. Templates are used for certain types of HTML documents, to ensure consistency or provision of functions. Authentication used for Single Sign-On (SSO) in the mySAP.com Workplace. The central Workplace server gives the user an SSO Ticket. This ticket is then verified by the component systems to allow the user access without having to enter the user ID and password again. Logically self-contained action in an SAP System. From the user‟ s point of view, a transaction represents one unit (for example, changing a customer address). Uniform resource locator: internet address (e.g. http://www.mysap.com) Work station Records with important master data of a particular user in SAP. User master records are used to assign user menus including particular authorizations for activities to a user. Value based management Wireless Application Protocol: protocol that defines the transmission and display of special Internet content on devices with limited display capabilities, for example, cell phones. Tool for developing Internet applications driven by the Internet Transaction Server (ITS). You can use the Web Application Builder to create all the files required to run an application on a Web browser. Simple navigation program with GUI interpreting and displaying html documents from the internet. Web-based distribution authoring and versioning: http-extension enabling the joint access of documents via internet. SAP WebFlow enables the running of SAP business workflow via internet. Server managing connections to the internet. WebGateway: component of the internet transaction server (ITS); connects the ITS with the web server. Wgate receivers queries from the web browser via web server and forwards them to AGate. Software assistant displaying instructions for running particular actions within applications. Wireless markup language: internet standard language to characterize pages for mobile WAP devices. Runtime representation of steps to define a workflow or task. IT-enabled processing of structured, interrelated, and repetitive business processes. Role-based, personalized web browser portal for SAP systems, external systems, and internet applications. Communication software on a server replicating, synchronizing, monitoring, and distributing data between the center (network) and external users, e.g. business warehouse or mySAP ERP system. Part of the workplace architecture consisting of a web server, an internet transaction server, and optional drag-and-relate services. Main server to store information about the workplace user roles.

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Integrated business processes with SAP ERP WorkSpace XML

Right hand side of the mySAP.com workplace browser window displaying MiniApps, Transactions, and web sites. Extensible markup language: standard for the definition of individual display languages characterizing structured information with tags. Like html, xml is a link-oriented language for internet content.

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Integrated business processes with SAP ERP

1 Introduction: Introduction into SAP ERP This course deals with the leading standard software for Enterprise Resource Planning, namely SAP ERP. Covering the content of the SAP-owned course TERP10, this course gives attention to a bilk of SAP ERP, SAP analysis, the management solution SAP BW (business information warehouse), and SAP SEM (strategic enterprise management). Besides gaining in-depth theoretical knowledge about SAP solutions and components, you get the chance to practically apply your new knowledge to the SAP system within case studies. The ultimate ambition for students in this course is to gain competencies in the area of SAP ERP standard solutions as well as receiving a certificate issued by the University of Duisburg-Essen and to be accepted for the TERP10 exam by SAP.

1.1 Course objectives Useful tips for practical application: Being a SAP consultant, you focus on consulting, sales, and implementation of SAP ERP components. That is why you need to be familiar with the integrated logistical and financial processes in SAP ERP and the utilization of analysis components like Business Information Warehouse (SAP BW) or Strategic Enterprise Management (SAP SEM). At the end of this course you will be able to: -

-

Explain how basis business processes in the areas o Sales Order Management o Material and Production Planning o Procurement o Inventory Management o Customer Service o Financial Accounting and o Controlling o Plant Maintenance o Project Management interact in SAP ERP, Explain analysis and reporting functions, especially for SAP SEM and SAP BW components. explain Enterprise Resource Planning with SAP ERP, explain the technical platform of SAP ERP, i.e. SAP NetWeaver, describe the integration of SAP ERP core components, and perform integrated business processes and business cases in SAP ERP.

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1.2 Course outline Conventional courses equip you with concepts, principles, and theories by reading and teaching. Objective of courses like this is transfer of knowledge and of theoretical links. Contrastingly, case studies will encourage your capabilities of analyzing business problems, developing solutions, and decision-making. The main objective of this course is to give you an understanding of theoretical foundations and practical application with the leading standard software for businesses and thus to develop competencies in the area of Enterprise Resource Planning (ERP). Besides the possibility of attain a certificate by the University of Duisburg-Essen, this course serves as extensive preparation for the SAP TERP 10 exam. Therefore, teaching units are structured in theory, application, excursus, and reflection parts. Theory Theory-labeled sections of this course deal with theoretical foundations of SAP ERP. Since SAP AG considers substantiated knowledge of a product as most important criterion for the admission to the certification exam for SAP consultants and associates, the content of the theoretical sections is of high relevance for the certification exam of SAP. Therefore, you should familiarize yourself with those sections during preparation for the exam. Practical application Sections labeled practical application teach you how to apply theoretically gained knowledge to the SAP ERP system using case studies to practically substantiate theoretical knowledge and enhance the total comprehension. Additionally, you will receive a certificate for proper processing of all case studies issued by the University of Duisburg-Essen. Excursus The Excursus section consists of topics to ensure in-depth understanding, although they are not relevant to the SAP examination. Reflection In the reflection section, you will answer questions concerning the covered topics for revision purposes. This section is not compulsory but highly advisable with respect to the SAP exam.

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2 Theory – Introduction in Enterprise Resource Planning with SAP ERP This introduction gives you an insight into SAP ERP and the required capabilities to deal with this complex standard software You will familiarize yourself with the software producer SAP, the differences of SAP R/3 and its successor SAP ERP, the technical platform for SAP ERP, i.e. SAP NetWeaver, the SAP organization structure, and foundations of master data and transactions in Introduction in Enterprise Resource Planning with SAP ERP (chapter 2). Additionally, you will get an overview of technical foundations of SAP ERP analytics. Those remarks will enable you to process further units and case studies since you gain basic theoretical knowledge. The second part of the introduction, the model company IDES (chapter 3), an excursus will outline briefly the model company IDES. Being a SAP-created sample for education purposes, all relevant business processes of SAP ERP can be implemented in IDES. The third part of the introduction, handling and navigation in SAP ERP (chapter 4), you will be actively involved with the SAP ERP system for the first time. First, establishing a connection with the SAP system is explained. Then, you learn how to use the SAP graphical user interface (GUI) using the different navigation methods and the integrated help function. Finally, you will work on a navigation case study that will enable you to process case studies on your own. Educational objectives in chapter 2: - SAP company and history - SAP R/3 enterprise in contrast to its successor SAP ERP - Explaining SAP ERP architecture - Components of SAP NetWeaver - Enhancing business processes with SAP NetWeaver - Strategic advantages of SAP NetWeaver - Explaining functionality of SAP ERP master data - Explaining SAP ERP analytics Educational objectives in chapter 3: - Familiarize with IDES AG - Insight into organizational structure of IDES AG - Brief information about UCC (University Competence Center) Educational objectives in chapter 4: - Setting up a remote connection with the SAP ERP system - Handling of the SAP ERP system and navigating in the SAP ERP system

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Integrated business processes with SAP ERP

2.1 Overview of SAP This chapter briefly introduces the software producing company SAP.

2.1.1 SAP – the company SAP AG (German: Systeme, Anwendungen, Produkte, English: sytems, applications, products) was founded in 1972 by five former IBM employees. Today, SAP is the thirdlargest independent software vendor. SAP‟s head office is in Walldorf, Germany. As originator and market leader for ERP software, SAP employs 48.500 people worldwide, 10.600 of them work in the head office in Walldorf (as of 2007). In addition to the main development center in Walldorf, SAP maintains amongst others branches in Palo Alto (USA), Tokyo (Japan), Bangalore (India) and Sophia Antipolis (France), as well as in Berlin, Karlsruhe, and Saarbrücken (Germany). With branch offices in more than 50 countries, SAP generated a provisional turnover of 11.565 billion Euros in 2008. SAP AG is listed at diverse stock exchanges, e.g. DAX and NYSE (as of 2007). SAP services 89.000 customers with numerous installations of SAP products. 12 million users in more than 120 countries use SAP products in 28 different languages. Additionally, SAP offers 22 business solutions, e.g., for automotive and pharmacy businesses. A brief selection of SAP‟s clientele: - General Motors Corp. - Bayer AG - Discovery Channel - DHL - Callaway - Asics - BP - Shell - Deutsche Telekom AG - Siemens AG - Porsche AG - Daimler AG - Audi AG - Deutsche Post AG

2.1.2 Milestones of SAP history After the founding in 1972, software engineering regarding ERP advances constantly. The biggest milestone of SAP AG was the going live in 1992 of the SAP R/3 system. R/3 means that transactions and the processing of transactions, respectively, can be conducted in realtime. Since 1993, there is a cooperation agreement between Microsoft and SAP for the porting of the R/3 system to Windows NT, which was accomplished in 1994. The development of a user-friendly GUI was carried out in 1998 with Enjoy SAP. Since 1999, mySAP.com is existent, allowing the connection of e-commerce applications with present ERP applications. The software products mySAP ALL-in-One and SAP One Server were introduced in 2002. The latest generation of ERP software by SAP is called (my)SAP ERP (the prefix my is supposed to be dropped for future releases), focusing on the inter-company integration of enterprise software with the connection over SAP NetWeaver. Like the introduction of SAP page 21 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP R/3 in 1992 was the migration from mainframe computing to client/server architecture, SAP ERP/NetWeaver is another paradigm shift with the migration to service-oriented architectures (SOA) to preferably integrate all present systems and gradually transfer them into the new system landscape. This is to ensure the value of all prior investments of a customer, partially reflected in the latest SAP AG license agreements.

Figure 1: Milestones of SAP

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Integrated business processes with SAP ERP

2.2 SAP R/3, SAP ERP, and SAP NetWeaver In the following section of this script, you will learn about the software products SAP R/3, SAP ERP und SAP NetWeaver. The focus is on both theoretical foundations as well as important fundamental terms with respect to the case studies.

2.2.1 SAP R/3 SAP R/3 in basis version is an integrated, branch-neutral standard software covering almost all business purposes. The flexible adjustment to company-specific requirements is referred to as customizing in SAP R/3 (and all other SAP systems). Diverse applications modules can be added to the present basis module to eventually achieve complex branch-specific modules. The particular units are visualized in Figure 2.

Figure 2: SAP R/3 modules: Nicolescu/Wittges 2006

We will take a pass on detained module description at this point. This monolithic structure of the unitized design was a proper solution to include all relevant business processes back in the 1990s; however new requirements for companies resulted in the lack of flexibility concerning this design. Especially with respect to the integration of external systems (non-SAP systems), customers, and vendors of the supply chain, a new way to represent business processes became necessary.

2.2.2 SAP ERP With increasing globalized markets, competition changes constantly and requires companies to adjust quickly to those new conditions. A vital factor of success is the time needed for a company to flexibly adjust their business processes and information flow along the intercompany supply chain. SAP R/3 required extensive changes and complex and timely interface configurations and maintenance. Contrastingly, SAP ERP with its service-oriented architecture offers, in combination with SAP NetWeaver, an extensive solution.

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Integrated business processes with SAP ERP SAP ERP 6.0 is the latest ERP solution by SAP AG. The following image shows that this solution is no longer based on the core component SAP Basis, but the complete integration into the SAP NetWeaver concept is in place. This ensures the guaranteed future of this ERP solution.

Figure 3: SAP ERP architecture

In 1992, SAP R/3 was introduced as successor of SAP R/1 and SAP R/2 featuring a two layer architecture (technology and application layers). With the introduction of SAP ERP in 2003, a bunch of components is available to support and enhance ERP business processes. At that time, SAP R/3 Enterprise was one of those components. As you can see in Figure 3, SAP ERP consisted at that time already of more components than merely SAP R/3 Enterprise and SAP NetWeaver and featuring many new functional enhancements, e.g., self-services, SAP SEM etc. SAP ERP Central Component (ECC) is the latest generation of SAP enterprise resource planning software. As you can see above, elements operated by SAP ERP Central Component are displayed orange. In the area of SAP NetWeaver, those elements being integrated technically with SAP ERP Central Component (Business Intelligence merely on project basis) are shown. Since Release 4.6C, SAP R/3 consists of the already described parts (layers) SAP basis (technological layer) and application. To come to a more recent SAP R/3 release, customers had to upgrade both the technology layer as well as the application layer. With SAP ERP, a new SAP solution was generated. Along with other SAP components, SAP R/3 Enterprise is included in SAP ERP as well. That is why customers wanting to upgrade their present SAP R/3 Enterprise to SAP ERP are not required to perform technological changes. page 24 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP SAP ERP is based on the open technology platform SAP NetWeaver and features an extensive range of functions, which can be extended in accordance with company requirements and needs. One example for this is the direct inclusion of catalogues in procurement processes. SAP responds to growing requirements and this is why the latest ERP solution is more flexible. Besides those small but necessary extensions, SAP ERP offers functional advancements in all functional areas traditionally covered by SAP R/3. The functional areas - User services (e.g. intuitive GUI), - Analytics (extensive information), - Financials (e.g. functions to automate external and internal accounting processes), - Human Capital Management (e.g. talent management), - Operations (e.g. logistics management and product lifecycle management) and - Corporate Services (e.g. optimizing central and local services for managing real property, portfolios, business trips, environmental issues, health issues, and employment protection as well as quality management) were improved largely and extended. Additionally, functions not being part of SAP R/3 before are integrated in the latest SAP framework with the SAP NetWeaver (cf. following figure: SAP Solution Map – Analytics), e.g. functions regarding the Business Information Warehouse (SAP BW). You can see distinct areas from the following figure. In those areas, mySAP ERP offers new functions in contrast to SAP R/3. By the way of example, SAP ERP customers may use SAP NetWeaver functions by implementing either SAP Business Information Warehouse or SAP Enterprise Portal. In addition, self-service procurement, internet sales, and other functions may be implemented. SAP Best Practices is the pre-configuration of frequently-used highlight functions, e.g. new general ledger and analytics.

Figure 4: Solution map mySAP ERP

page 25 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP Please note that SAP ERP is not meant to be a remake of R/3, but a solution for a serviceoriented architecture as aimed for both in the academic world as well as in the business community. As opposed to SAP R/3 (monolithic structure, applications were linked to the business logic), SAP ERP is based on the open, service oriented architecture of SAP NetWeaver. The technology platform allows SAP R/3 customers to overcome the costly and timely problems of real-time business regarding integration of application and external systems as well as maintenance of interfaces.

Figure 5: From SAP R/3 to SAP NetWeaver: following: Nicolescu/Wittges 2006

You can see from the figure (down on the right) that SAP ERP is a solution within the SAP Business Suite. The SAP Business Suite is based on the demand of customers or customer groups, and on contributions of analysts and leading experts to allow customers to successfully face challenges on the market. The solution embraces business, tactical, and strategic requirements within and beyond a company ensuring inter-company collaboration amongst partners.

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Integrated business processes with SAP ERP

Figure 6: SAP Business Suite

SAP Business Suite features the following business solutions that need to be licensed separately: - mySAP Enterprise Resource Planning - mySAP CRM – mySAP Customer Relationship Management - mySAP PLM – mySAP Product Life-Cycle Management - mySAP SRM – mySAP Supplier Relationship Management - mySAP SCM – mySAP Supply Chain Management All SAP solutions are based on the new service-oriented architecture paradigm. Accordingly, we will focus in more detail on service-oriented architectures and SAP NetWeaver in the following chapter. Note: Please note that the terms SAP ERP and mySAP ERP are used synonymously in this script. The ‘my’ prefix in mySAP was introduced with a new generation of SAP products being combined in the SAP Business Suite Framework. Thus, this is a product related measure. However, this prefix is not longer used since SAP ERP ECC 6.0 we won’t use it in this script either, except for this introduction chapter.

2.2.3 Service-oriented architecture and enterprise service architecture Service-oriented architecture is an IT concept aiming at supporting business processes. Therefore, the old, monolithic structures are broken up into small, graspable components. Those encapsulated services can be interlinked to handle business processes. Thus, services may be used within distinct processes. A decisive advantage of those services (also known as web services) is that they are based on well known standards and that many software companies, e.g. Microsoft, IBM, Sun, and SAP, agreed on furthering web service standards. Those standards are combined in the web service standard stack.

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Integrated business processes with SAP ERP This includes: - XML (eXtensible Markup Language): specification language for data contents defining both data as well as corresponding metadata. - SOAP (Simple Object Access Protocol): method and function call of remote applications using XML as basis language. - UDDI (Universal Description, Discovery and Integration Services): Directory to locate web service functionalities. - WSDL (Web Service Description Language): specification for describing web service interfaces. - BPEL/BPEL4WS (Business Process Execution Language/for Web Services): specification language defining the sequence and conditions for the interaction of services to realize (parts of) business processes. Those specifications allow web services to interact with each other. A remote program module can for example prompt another application to look into somebody‟s creditworthiness. Therefore, the remote program seeks a matching service using the UDDI directory. After that, information about interfaces, parameters, etc. of the service may be conveyed to the remote program in WSDL to then call the service using SOAP. Thus, the mapping of a particular business process with multiple services is enabled due to standardized protocols. Since services can interact and communicate with each other, no disruptions are the case and thus the process is independent of systems, platforms, and infrastructure, being processed only by machines. Enterprise service architecture The consequent implementation of the web service concept was realized by SAP with its Enterprise Service Architecture (ESA). Multiple enterprise services are combined in composite applications and delivered as packaged composite applications, i.e. as so called xApps, which represent complex business functionality. Next is a list of the hierarchy, stating with a single service to a complete xApp: 1. Service: simple function 2. Web service: web-compatible function 3. Application service: consists of a web service making services from an application available. 4. Enterprise service: consists of one to n application services and serves as interapplication web service to abstract business. 5. Composite application: complex application consisting of enterprise services 6. Packaged Composite Application: packages of composite applications from software company 7. xApps: composite application created by SAP or partners. Currently, multiple business processes are realized as xApps by SAP, SAP partners, and third party providers. However, it is required time until a complete coverage of business processes using xApps is realized. Nevertheless, even today SAP offers many best practice solutions based on xApps.

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Integrated business processes with SAP ERP

Figure 7: SAP Enterprise Service Architecture

An enterprise service is not concentrated on a particular function, but rather in the complete, branch-specific process. An enterprise service can for example be used to cancel an order. From a company perspective, enterprise services can represent different actions in different systems: - sending confirmations to customers - delete order from production - cancel material requirements - change order status - … An enterprise service consists of all single steps and represents thus context-based business process logic. This context orientation is decisive, since the particular functions of order reversal processes in automotive industry differ from a similar process e.g. in media industry. Web services enhance the processing of the single steps within an enterprise service. So what is the difference between a web service and an enterprise service? Well, enterprise services characterize business process logic more generally, while web services are small, modularized applications using internet technology, and usually being accessed as single function in applications or enterprise services.

2.2.4 SAP NetWeaver As mentioned earlier, SAP ERP is a flexible successor due to its modularized structure. It is modeled on enterprise service architecture, in which business applications may interact with each other via open interfaces. This construction principle is quite demanding when it comes to technical infrastructure. An open application and integration platform is required for calling technical applications and seamlessly integrating external third-party systems. SAP NetWeaver covers this key role and is thus the company-wide infrastructure for all business applications.

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Integrated business processes with SAP ERP

Figure 8: integrated system landscape

Thus, new applications can be integrated properly with this platform (technically speaking, middleware) – regardless if SAP-own applications or applications from third parties. The hitherto existing complex adjustment of interfaces does not apply anymore, or is facilitated (reduced total cost of ownership (TCO)).

Figure 9: SAP ERP and SAP NetWeaver

We will now take a closer look at the four integration layers of SAP NetWeaver.

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Integrated business processes with SAP ERP

Figure 10: SAP NetWeaver components

2.2.4.1 People Integration Components of people integration are: - Portal infrastructure: enables the unified, personalized, and role-based user access to heterogeneous IT environments. - Collaboration (inter-company collaboration): promotes the dynamic and efficient communication of teams or communities. - Multi-Channel access: enables access to enterprise systems via computer, internet, mobile devices, and voice-based systems. People integration is the top-level integration layer of SAP NetWeaver. It combines functions that users need for their every-day work, regardless if it is about one system or applications on many, distributed systems. Since access to the portal is role-specific, it can be used for customers, vendors, or employees in equal measure. The portal (SAP Enterprise Portal) is a single point of contact and access to all sources of information and is thus a consistent user interface for accessing applications of a business process with all role-specific content and personalization functions. All SAP, data warehouses, desktop files, web content, web services, and third-party systems of an enterprise are comprised in one single GUI. Using single sign-on, a facilitated method for authentication and communication processes between different IT systems is implemented. Portal knowledge management transforms unstructured data into important company information. Furthermore, collaboration facilitates inter- and intra-company group efforts.

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Figure 11: SAP Enterprise Portal – central GUI

Thus, particular functions are consistently subservient for all ERP processes. SAP Business Intelligence and SAP Master Data Management (SAP MDM) are all-purpose instruments applicable to all ERP fields such as human capital management, financials, or operations. Furthermore, the collaboration component represents a possibility for cooperation of diverse partners. Services facilitating communication and information exchange are combined in the frontend. To ensure smooth integration for users and access to relevant media for all participants, a multi-channel access was put in place. Thereby, access to the SAP system is possible either over an internet portal, or a SAP GUI, or via a mobile communication device. 2.2.4.2 Information Integration Areas of information integration are: - Business Intelligence: enables enterprises to integrate, analyze, and distribute critical information. - Knowledge Management: manages unstructured information, e.g. text files, presentations, or audio files and thus facilitates accessing this content. - Master Data Management: enables a company-wide standardization of data and information in heterogeneous IT environments. Central access for all business-relevant information is carried out on the people integration layer in SAP NetWeaver. Information integration is concerned with information supply. Therefore, the solution encompasses the following aspects: - Data integration and transformation - Data analysis and planning - Reporting - Data cleansing - Knowledge management Along with the integration and transformation of data, data analysis is powered by analytical tools of the SAP Business Information Warehouse (SAP BW). Integrated planning functions in BW are enabled SAP BW-Business Planning and Simulation (SAP BW-BPS). SAP BW and SAP BW-BPS together represent business intelligence.

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Integrated business processes with SAP ERP SAP Master Data Management enables data cleansing, which is important for maintaining proper data quality. Thereby, functions from all attached systems are available to consolidate and harmonize master data and allow a central master data management.

Figure 12: Integrated SAP MDM

Using Master Data Management (MDM), inter-company standardized master data may be created and distributed via divers, interconnected systems. MDM is technically based on exchange infrastructure (SAP XI) to distribute data. However, MDM not only distributed data. Moreover, it checks master data for duplicates, which can be taken over into SAP BW for analysis Finally, SAP Knowledge Management allows for the integration of unstructured data (text files etc.) for all employees from distinct systems using a generic framework. 2.2.4.3 Process Integration Sub-areas of process integration are: - Integration Broker: The integration broker enables communication between application components from distinct sources via XML/SOAP. - Business Process Management: powers modeling and acceleration of processes in a dynamic IT environment. Process Integration enables an inter-system realization of business processes. SAP XI (Exchange Infrastructure) is the vital component for process integration. The Integration Broker realized SAP XI communication between software modules and applications, regardless if within an ERP system, or inter-company-wise, if using SAP or third-party applications. The open architecture of SAP XI enables complete interoperability with IBM WebSphere and Microsoft .NET. Furthermore, SAP XI‟s adapter framework offers multiple connectors to SAP and non-SAP systems. page 33 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP -

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SAP to SAP adapter: o IDoc adapter: intermediate document o RFC adapter: remote function call SAP to non-SAP adapter o File adapter to reading out files (for old systems) o JMS adapter for calling Java-based messages o JDBC adapter to connect with databases o http adapter to connect with http applications o SOAP adapter for reading out web service data B2B adapter o EDIFACT o RosettaNet o et al.

Figure 13: connection of external systems with SAP XI

Data is transmitted from a sender system via protocol to the adaptor in a particular data format, e.g. IDoc. The adapter then transforms the document in SAP XI format and forwards it via HTTP(S) to the integration server. System configuration determines which adapter is used when receiving a message. The integration server sends a message to the particular adapter, which in turn transforms the message into the receiver‟s protocol before sending it. The latest SAP XI implementation module can be used if SAP XI is supposed to be implemented to realize an inter-system integration process, and the involved systems are based on SAP web AS 6.20 or higher. Therefore, platform-independent interface specifications are defined in the integration repository. Using this description, proxies are created in the distinct application systems for Java applications of SAP systems. In an application system, the proxy acts in place of an interface in the integration repository. From a technical point of view, proxy objects are classes and methods in a programming language (ABAP or Java), creating and processing messages for a particular message format, which is defined in the integration repository. The integrated Business Process Management Engine serves as main element for the component-spanning modeling and monitoring of business processes. Thus, complex processes can be graphically modeled, implemented, and monitored within an IT page 34 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP environment. Usually, this is about processes running between distinct business partners, being linked loosely through information exchange. Either eclipse-based tools by SAP or ARIS for NetWeaver are used for process modeling. 2.2.4.4 Application Platform Finally, the Application Platform enables through its structure the running of ABAP and Java code. Thus, it is possible to program SAP applications, which are already in place in an open, standard-based development environment, e.g. J2EE. The Web Application Server (Web AS) as basis of SAP NetWeaver provides the complete infrastructure for development and processing of all SAP NetWeaver components and is thus the foundation of all SAP applications, e.g. SAP CRM or SAP SCM. Furthermore, the Application Platform is the foundation of all customer developments and J2EE-conform third party applications. Additionally, Web AS features an integrated life-cycle management based on standardized development and implementation tools. Web Application Server (Web AS) In addition to the runtime environment for ABAP programs already in place, SAP Web Application Server (Web AS) features a runtime environment for J2EE-based Java programs, the SAP J2EE engine. In combination with the database, SAP Web Application Server serves as the SAP NetWeaver application platform. SAP Web AS features: - a reliable and time-tested runtime environment, which was advanced continuously over the past ten years, - a safe and secure framework for the processing of complex e-business processes, - a reliable and easy to operate development environment, - support of open technical standards, such as HTTP(S), SMTP, Unicode, HTML and XML, - high scalability as is already known from SAP basis, and - support of multiple operating systems and databases.

Figure 14: Attributes and structure of SAP Web AS

Web AS is part of distinct SAP systems as well. Different SAP software components such as SAP ERP, SAP BW, SAP CRM and SAP SCM use SAP Web AS. Thus, SAP Web AS is the main component in connection with the Application Platform. page 35 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP When taking a closer look at the distinct SAP systems (e.g. SAP ECC 6.0 and SAP CRM), you will see that they can be roughly structured in two types: - Basis functions - Application functions

Figure 15: SAP Web AS as part of distinct SAP systems

The distinct SAP systems (or products, respectively), differ considerably in their application functionality. You can for example process marketing measures using SAP CRM (marketing planning, campaign management). SAP ERP ECC 6.0 does not feature this functionality. Contrastingly, you can represent warehouse management using SAP ERP ECC 6.0. In turn, SAP CRM does not feature this function As opposed to application functions, basis functions are quite similar in the distinct SAP systems. SAP Web AS features the basis functionality being an enhancement in contrast to SAP basis. Thus, both systems (ERP and CRM) do not differ considerably regarding their basis functions, e.g. configuration of output devices or multi-language support, since both SAP systems use SAP Web AS technology. The following image represents an overview of the SAP NetWeaver components (learning aid):

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Integrated business processes with SAP ERP

Figure 16: SAP NetWeaver components

2.2.4.5 Advantages of SAP NetWeaver Openness and extensibility: SAP NetWeaver offers complete compatibility and extensibility regarding IBM WebSphere and Microsoft.NET, i.e. technologies that multiple enterprises invested in. SAP ensures interoperability with IBM and Microsoft solutions, supports development strategies and distribution activities as well as SAP offers competence and support centers. The integration of SAP NetWeaver with IBM and Microsoft solution is possible on all layers and thus involves integration of people, information, and processes. Hence resulting, IT investments already in place can be used optimally. Instant integration: SAP NetWeaver enables the complete integration of a company on all decisive levels. Additionally, SAP NetWeaver offers useful pre-configured business content. This ready for use content are available on all SAP NetWeaver layers and thus enhance an enormous reduction of implementation time as well as expedite return on investment (ROI). SAP NetWeaver features among other things the following business content: - Pre-configured portal content and pre-defined roles for an enhanced integration of people - Reports and analyses for a faster information integration - Interfaces to link business processes in distinct backend systems. Low TCO: Since present IT systems can be integrated and embedded profitably, the technology platform secures already existing IT investments. SAP NetWeaver supports the whole software life cycle of business-critical applications with low total cost of ownership (TCO).

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2.3 Organizational plan of a SAP ERP system You will now get a short overview of the basic organizational levels of the SAP client concept. You should be familiar with the following terms and their links to be able to process the case studies. Additionally, you might have to answer questions concerning the organizational plan in the certification exam. SAP ERP systems are client-based. This allows the integration of multiple commercially independent companies in one single system. A client is the highest-level unit in a SAP system. Each client represents the enterprise, company, or business, depending on the size. Thus, a client is an organizationally, data model-wise, and legally closed unit. A client includes a set of tables and data, which is separated from other clients. In SAP, clients are identified using their client number. You can learn which client you will be using from your access data. Another important term is company code. You will primarily use the company code 1000 (Germany) within the case studies. Furthermore, you will learn the terms plant, storage location, purchasing organization, shipping point, sales organization, controlling area, etc. You can find a short overview of this terminology in the following figure. Subsequently, you will now read about the relevant organizational units in this course. At the beginning of each case study, you will get a short overview of the particularly important organizational units.

Figure 17: SAP organizational structure: terminology

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2.3.1 Financials: organizational units 2.3.1.1 Company Code Company structure determines, whether a self-contained set of accounts is required for external reporting purposes. Therefore, SAP ERP features the company code as an organizational level. It is the smallest organizational unit for which a self-contained set of accounts is possible according to commercial law; a complete profit and loss statement can be issued. If a business organization consists of more than one company (i.e. a group), company codes represent the particular companies of the group from an accounting point of view.

Figure 18: SAP organizational structure

2.3.1.2 Operating Concern Usually, results of a controlling area are multi-dimensional. To facilitate structuring, operating concerns can be created as result subsets. Thus, operating concern filter the overall result based on defined criteria. In turn, these particular characteristics can be analyzed across controlling areas. Operating concerns can be structured in event objects which are important for market analysis. 2.3.1.3 Controlling Area In SAP ERP, the organizational level for planning, allocating, and monitoring costs is the controlling area. You can assign more than one company codes to a particular controlling area, depending on size and structure of a company. A group can for example show internal activity allocation via multiple companies (cross-company code cost accounting). A controlling area is a separate organizational structure, for which costs and revenue can be controlled and credited. It is a separate controlling unit. 2.3.1.4 Credit Control Area A company can monitor customer credits, realized on the organizational level called credit control area. A credit control area can contain multiple company codes. Thus, the SAP system can react to particular events relevant to credit limitations with either warnings or delivery blocks. page 39 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 2.3.1.5 Chart of Accounts The chart of account contains all general ledger accounts of a company and structures them based on business characteristics. One (or multiple) company code can use the chart of accounts to validate accounts for document posting. This chart of account is referred to as operating chart of accounts. Additionally, SAP features alternatively two other Charts of Accounts, reflecting legal requirements and consolidating reporting on group level. Each company code is assigned to one particular operative chart of accounts. 2.3.1.6 Business area You can organizationally structure a company in distinct business areas to facilitate external reporting (balance, profit and loss statement). The decisive characteristics are different products or product groups. Thus, a business area is a product-based view across the organization allowing for a condensed view on particular products or product groups.

2.3.2 Sales areas: organizational units 2.3.2.1 Sales Organization SAP uses sales organizations to distribute produced materials and offered services of a company. Thus, a sales organization is the rough structure for distribution. One or more sales organizations can be assigned to a particular company code (n:1). Correspondingly, goods distribution can be structured regionally since it is possible for sales organizations to distribute goods from more than one plant at the same time (m:n). Accounting is conducted on company code level. 2.3.2.2 Sales office A sales office is a sales unit from an organizational point of view. It can be compared to a distribution branch, where intermediates distribute products and. 2.3.2.3 Distribution Channel A distribution channel is the organizational unit to enable distribution of produced and salable goods and services. There are multiple channels for the distribution of products. Since there are customers who request to receive goods over distinct channels, more than one distribution channel can be assigned to a sales organization. Additionally, a distribution channel can be assigned to multiple sales organizations. 2.3.2.4 Division Production of goods depends on size and structure of a company. Products, materials, and services can be assigned to divisions. Since different sales organizations can distribute the same products, divisions can be assigned to multiple sales organizations. Accordingly, one sales organization can contain multiple divisions (m:n). A division is an organizational unit that can determine customer-specific agreements, e.g. partial delivery, or payment conditions. SAP can identify with a division the distribution channel and the corresponding business unit.

page 40 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 2.3.2.5 Sales area A combination of sales organization, distribution channel, and division is called sales area. It is used for analysis and pricing.

Figure 19: SAP sales areas

2.3.3 Logistics: organization units 2.3.3.1 Plant From a logical point of view, plants structure a company in organizational terms, i.e. it distinguishes between different production, procurement, maintenance, and/or planning locations. From a commercial point of view, a plant is a branch. A company code can contain multiple plants (1:n). The plant is the central organizational unit in logistics.

Figure 20: Plants in SAP ERP

page 41 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 2.3.3.2 Storage Location A storage location is an organizational unit enabling local distinction of material stock within a plant. Quantitative inventory management and inventory are conducted on storage location level. A storage location is part of a plant; a plant can contain multiple storage locations (1:n). 2.3.3.3 Shipping Point From a commercial perspective, a shipping point is the ship-from location of products. It is an organizational unit, which is located at a permanent location from which delivery handling is conducted. 2.3.3.4 Purchasing Organization The purchasing organization is core element of a company. Alternative procurement of materials is possible, i.e. the purchasing organization may order for the group (i.e. all company codes), a single plant, all plants, or hybrid forms. Furthermore, the purchasing organization negotiates procurement terms and conditions with vendors.

Figure 21: Purchasing organization in SAP

2.3.3.5 Purchasing Group The purchasing group enables internal procurement of materials.

2.3.4 Human resources: organizational units 2.3.4.1 Personnel Area Personnel area represents a distinct organizational unit for HR administration, time management, and billing. You can assign multiple personnel areas to one company code (n:1). 2.3.4.2 Personnel Subarea A personnel subarea represents a distinct part of a personnel area for HR administration, time management, and billing. You can assign multiple personnel subareas to one Personal Area (n:1). page 42 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 2.3.4.3 Employee Group In HR, you can define personnel-related conditions for an employee group as particular organizational unit. The same HR conditions are applicable for each employee group (e.g. retired persons, freelancer etc.). 2.3.4.4 Employee Subgroup An employee subgroup is the organizational unit under the employee group. Within an employee group, employee subgroups define conditions in more detail, e.g. regarding non-pay scale employees. You can assign multiple employee subgroups to an employee group (n:1).

2.3.5 Additional organizational units in SAP You can find additional definitions of organizational units in the SAP library. This is a list of possible elements: Financials - business area consolidation - functional area - financial management area Logistics - location - warehouse number - loading point - transportation planning point In due course, we will pick up these organizational units again.

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2.4 Master data, transactions, and transaction data

2.4.1 Master data Master data is used on a long-term basis for business processes. They are created centrally, and all applications and authorized users can apply them. Master data include customer data, material data, and vendor data. Customer master records contain key information defining company relations to a particular customer. Master data are used for processing important business processes, e.g. customer requirements, deliveries, billing, and payments. Mater data feature an organizational aspect as well, since they are organized into different views that are assigned to particular organizational units. Customer master record data is for example organized into three views that are located on different organizational levels: general data (client), accounting data (company code), and sales data (sales area). Data on client level are accessible by all company codes. On this layer, a customer account number is assigned, i.e. from a financial point of view, a customer gets an explicit number in all company codes.

Figure 22: Customer master records: example

2.4.2 Transactions Transactions are applications running business processes in the system, e.g. creating a sales order, posting incoming payments, or checking absence requests. A document is a data record, which is generated when processing a transaction. When creating a sales order, you need to make agreements regarding transport, delivery, and payment with a business partner. To automate these information and to avoid re-entering information into the systems, relevant data is copied from the master record of the business partner. Information like price per unit of quantity and stock per storage location is stored in material master records and can be utilized during order entry. This is applicable to each master record within a particular activity When processing transactions, valid organizational elements need to be assigned. These assignments are created in addition to customer and material information. The resulting document contains all pre-defined information from master data and organizational elements. For each transaction carried out, a document is created in SAP. page 44 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

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Figure 23: Transactions in SAP

2.4.3 Transaction data Transaction data is short-term, activity-related data (e.g. orders) which are assigned to particular master data (e.g. customers). Transaction data created within a transaction are stored as document. Documents include among other things sales orders, material documents, and posting documents etc.

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2.5 Example processes in SAP ERP You will now get to know two sample processes, which are typical for SAP ERP. In due course, you will learn about these processes in more detail.

2.5.1 Procurement: example process When receiving a sales order, the first step from a logical perspective is requirements determination regarding necessary components. Therefore, the responsible department can report requirements to the purchasing department manually with a purchase requisition or the system can generate ATP (available-to-promise) automatically. Order process: The purchasing department creates orders for order processing. SAP features entry transactions to facilitate creation. Therefore, required data (e.g. vendor, material, plant, etc.) needs to be provided. If material was delivered, a goods receipt posting is created. With goods receipt, the system checks among other things goods receipt quantity and purchase order quantity. Then, a material document is created on material management (MM) to update inventory. At the same time, a document is created in financials (FI) for posting goods either to the inventory change account or to the G/L account. After invoice receipt, invoice verification checks the invoice from a vendor regarding contents, arithmetic, and prices Logistics carries out all those purchasing processes. With invoice receipt, the system posts to MM, and created an FI document to post to GR/IR account or to the vendor account. The GR/IR account ensures that there is a goods receipt for each invoice et vice versa. After that, payment processing is usually carried out in financial accounting. That is where details of the payment process are determined, e.g. payment method and banking.

Figure 24: Procurement: example process

page 46 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

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2.5.2 Engagement management: sample process A sales process is based on a sales order. A sales order in SD (sales & distribution) can process multiple scenarios. You will now learn about two example SD scenarios: sales from the warehouse and make-to-order production for a performed service. Sales from the warehouse When a customer sales order occurs for a particular material that is available from stock, the SAP system creates an order for the material (order demand). This is automatically transformed into a reservation, since the material is in stock. Costs and revenues of order processing originate directly from CGM (costs of goods manufactured) and SD sales prices, respectively. To deliver the goods to the customer, a delivery document is created. Only when the goods are taken from stock and posted as issued goods, billing can be carried out. Based on the delivery document, a transfer order document can be created, which then generates a picking request. The requested goods are then taken from the warehouse and prepared for delivery. Goods to deliver are posted as goods issue. For the creation of a goods issue document, usually a material document and an accounting document are created. The last step of the distribution process is billing. A billing document is created in SD and a printed invoice is send to the customer. Billing is also the step when revenues are transferred to controlling. In case of receiving a customer payment, the incoming payment is posted to FI. Make-to-order production In contrast to sales from the warehouse, make-to-order production is a direct activity output process, which can be modeled in terms of a sales order item as well. The sales item is a cost object, i.e. costs and revenues can be posted directly and individually to the SD position. In comparison to sales from the warehouse, the steps incoming order, billing, and payment are almost identical. However, in this service example, transport of goods is not necessary. Therefore, the cost object „sales order item‟ can be assigned directly for all activities. After activity output, costs and revenues can be transferred to profitability analysis (CO-PA) with an order settlement.

Figure 25: Engagement management: sample process

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2.6 Reporting solutions SAP ERP systems feature many powerful information systems. Usually, each function area administers its data and documents in one or more information systems, which are integrated. Examples of information systems within SAP ERP are the logistics, distribution, HR, or the order information system. While carrying out transactions in the logistics application of SAP ERP, the Logistics Information System (LIS) updates all relevant information (e.g. goods movement, inventory, order data). You can update data from other systems in LIS as well. LIS aggregates and sorts these information within a data warehouse (if a data warehouse solution, e.g. SAP Business Information Warehouse, is implemented). Data aggregation can be conducted both quantitatively as well as qualitatively: - Quantitative reduction through data aggregation based on periods (e.g. months). - Qualitative reduction through data aggregation based on specific key figures (e.g. revenue, profit). Based on this, tools of the Sales Information System (SIS) are used to analyze the aggregated information. Aggregation enhances response times and report quality. In following units of this course, you will learn about the particularly relevant information systems.

Figure 26: Data warehouse concept

SAP BW provides data analysis from operative SAP applications as well as from all other business applications and external data sources, e.g. databases, online services, the internet. Administrator Workbench (AWB) functions enable controlling, monitoring, and maintaining of all data procurement processes. SAP BW features online analytical processing (OLAP) for information processing in case of large amounts of both operative and historical data. OLAP enables multidimensional analyses with respect to various business characteristics. The BW server, which is pre-configured by the business content for the core areas and processes, features various views on companywide relationships. Business content provides targeted information for a company, which will be divided into roles. This helps employees to complete their work. Besides roles, business content features other pre-configured page 48 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP components, e.g., queries, key figures, and characteristics. These objects facilitate SAP BW implementation. The Business Explorer (BEx) component offers the user extensive options for analysis.

Figure 27: Distinction between operative and informative environment

page 49 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

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3 Excursus – IDES: The SAP model company You will now get to know the model company IDES. This is an excursus, which is irrelevant to the final SAP exam. This chapter is to explain the company, which will be used in the case studies. IDES stands for Internet Demonstration and Evaluation System (previously: International Demonstration and Education System). IDES is an integrated model company by SAP that is used for research, education, and consulting The following sections give you an overview of: - the IDES concept - the IDES group - the IDES organizational structure

3.1 The IDES concept This section briefly presents the IDES concept.

3.1.1 Characteristics The Internet Demonstration and Evaluation System can be characterized as follows: - completely developed model company - based on a standard SAP system - includes master data and transaction data - complete customizing - extensive data and process documentation of business processes across components - online documentation with tutorials for the business processes of the IDES group The IDES development department is responsible for maintaining and updating organizational data in IDES, e.g. new planning horizons are created, period-end closing are carried out, and transaction data is created to actualize the information systems. New, interesting business scenarios are implemented to reveal related functionalities. In detail, this is about the following areas: - organizational structure (customizing) - new master and transaction data - period-end and year-end closings - planning with corresponding horizons - new business processes At certain times, data is released from the „master system‟ in Walldorf (Germany).

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3.1.2 IDES for training The IDES system serves as basis for training and education (SAP internal). Training for the SAP ERP system by SAP AG are based on IDES-specific data – also internationally (corporate courses). More than 500 (SAP) internal IDES installations are present worldwide as - training systems, - demonstration systems, and - consulting systems. The IDES system is well established as external training and education system. The actualized group business processes are structured in tutorials. Therefore, the IDES online documentation is available. Since the integrated processes are completely modeled in the system, IDES facilitates learning of core functionalities on a step-by-step basis. Detailed process descriptions help users without specific SAP knowledge with a quick start. Additionally, the online help can be a guideline for internal trainings and foundation for the SAP ERP presentation.

3.1.3 IDES negotiated agreement The IDES development department engages to the following basic principles: - Requirements of an increasingly demanding business world need to be included. This is also applicable to educational purposes. - Organizational structures must be designed in a practice oriented manner. - Each core function must be up to date. - Users with little or no SAP knowledge need to be able to handle core scenarios in the SAP ERP system.

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3.2 The IDES group This chapter presents the worldwide operating IDES group in detail.

3.2.1 Group areas When you look at the IDES group structure, four group area are distinguishable:

Figure 28: Overview of IDES group areas: IDES – Das integrierte Modellunternehmen für Forschung und Lehre, 2005

Each group area is composed of subgroups, which are in turn composed of companies. The IDES industry group area consists for example of the subgroups IDES Europe, IDES America, and IDES Asia, that in turn consist of own companies (see following figure).

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Figure 29: IDES company codes: IDES – Das integrierte Modellunternehmen für Forschung und Lehre, 2005

Note: Company codes in IDES are characterized by different focal points, which will be presented briefly in the following section. Company code 1000 (Germany) is especially important as it is used in our case studies.

3.2.2 Company Code 1000

Figure 30: company code 1000: Das integrierte Modellunternehmen für Forschung und Lehre, 2005

Company code 1000 comprises business processes from logistics, accounting, HR, as well as common financial accounting processes and other company activities. Account determination is maintained completely in this company code, and dunning noticed are implemented that page 53 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP include complete header and footer texts. So far, approx. 70 customers were created by SAP AG. Furthermore, company code 1000 enables flexible standard costing, i.e. planning is both independent and dependent of activity type and costs and quantity is spitted in fixed and variable portions. In version 000 of company code 1000, plan data is listed for the cost center. Planning was carried out in detail, since the company code allocates activities iteratively to value them. In company code 1000, complete production is implemented, including both purchasing and sales. Additionally, real estate is featured and thus production completely implemented. Furthermore, the company code is characterized as manufacturer in the automotive industry and in the area of bicycle manufacturing in plant 1000. In plant 1100, the business solution chemicals is present, and in addition, plant 1300 features the business solution engineering & construction. Different manufacturing functions are assigned to the certain plants of IDES Germany due to educational reasons. Location

Products

Form of production Corporate function Offer and order costing

Frankfurt

elevators

Engineer-to-order

configuration network

pumps Hamburg

Dresden

Motorcycles

Bill of materials configuration Make-to-order manufacturing

bicycles

Availability checks regarding time, capacity, and material

Personal computers

Simple product structure with configurable product

Light bulbs

Repetitive manufacturing

paint Berlin

solvents pharmaceuticals

Stuttgart/ Dresden

Task lists configuration

Simple user interface for both planning and controlling activities Recipe management

Process manufacturing

Process planning, process orders, and process documentation Quality control

Additional stocks

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3.2.3 Company Code 2000

Figure 31: Company Code 2000 (Great Britain): Das integrierte Modellunternehmen für Forschung und Lehre, 2005

Company code 2000 is characterized by a lean, medium-sized company in FI and CO. Account determination is enabled, i.e. you can update business processes from logistics in financial accounting. A marginal plan/actual cost accounting is implemented. Cost planning is general and completely activity-independent. Planning is simply structured, since only manually implemented costs (VPRS) are used. For cost centers, planning data in version 000 until the year 2000 was implemented. Additionally, company code 2000 is component supplier for the automotive industry in plant 2000.

3.2.4 Company Code 2100

Figure 32: Company Code 2100 (Portugal): Das integrierte Modellunternehmen für Forschung und Lehre, 2005

In company code 2100, predominantly ALE business processes (Application Link Enabling: enables the monitored communication between SAP applications with consistent data management) from logistics are implemented. This is about scenarios of local production. The profit center is created based on functional criteria. The business area of this company code is product-oriented.

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3.2.5 Company Code 2200

Figure 33: Company Code 2200 (France): Das integrierte Modellunternehmen für Forschung und Lehre, 2005

Company code 2200 is a pure sales company. Business actions are documented from both a logistical and an accounting point of view. Additionally, an own account determination is defined, since this company code uses the French chart of accounts (CAFR).

3.2.6 Company Code 2300

Figure 34: Company Code 2300 (Spain): Das integrierte Modellunternehmen für Forschung und Lehre, 2005

Within company code 2300, also predominantly ALE business processes from logistics are implemented. The profit center is structured based on functional criteria and the business area in this company code is product-oriented.

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3.2.7 Company Code 3000

Figure 35: Company Code 3000 (USA): Das integrierte Modellunternehmen für Forschung und Lehre, 2005

In company code 3000, business processes from logistics, accounting, HR, and general financial accounting processes are represented. Account determination is maintained completely within this company code. Furthermore, company code 3000 is quite similar to company code 1000, since real estate management is implemented as well. Additionally, it includes the industry solutions Aerospace and Defense.

3.2.8 Company Code 4000

Figure 36: Company Code 4000 (Canada): Das integrierte Modellunternehmen für Forschung und Lehre, 2005

Company code 4000 represents a lean medium-size company in FI and CO. Account determination is ensured, i.e. business processes from logistics can be updated in FI. company code 4000 is quite similar to company code 2000.

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3.2.9 Company Code 5000

Figure 37: Company Code 5000 (Japan): Das integrierte Modellunternehmen für Forschung und Lehre, 2005

The decisive characteristic of company code 5000 is the focusing on representation of FI and HR, although those are still in development.

3.2.10 Company Code 6000

Figure 38: Company Code 6000 (Mexico): Das integrierte Modellunternehmen für Forschung und Lehre, 2005

Company code 6000 is an example of a country with hyperinflation. This is about a model to apply the material ledger to use a third currency (hard currency). Usually, each company code uses two currencies. The first one is called company code currency and the second one is referred to as Client Currency. The distinctive feature of company code 6000 is that three currencies are featured. The first one is the company code currency as usual (Mexican Pesos). The second currency (US Dollar) is the distinctive feature. The third currency is – as usual in IDES – the Client Currency (Euro).

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3.3 IDES Organizational structure This chapter presents those elements of the IDES Organizational structure using company codes 1000, 2000, and 3000, which will be important for you in the case study sections.

Figure 39: IDES Industry: Das integrierte Modellunternehmen für Forschung und Lehre, 2005

3.3.1 IDES Human Ressources HR is of increasing significance; Thus, HR functionalities and datasets were extended considerably in IDES. The HR module encompasses: Personnel administration Personnel development and controlling Recruiting Personnel planning Payroll for employees Social and law issues 209 personnel master records are maintained and 44 personnel areas are existent. A structured organizational management is implemented, featuring not only HR, but also corporate services, financials, and administration, as well as production and sales. Payroll for employees is included completely (e.g. wage types, accounting area). Many vacant positions are available, i.e. hiring and distribution on positions is possible.

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Figure 40: IDES HR: Das integrierte Modellunternehmen für Forschung und Lehre, 2005

3.3.2 IDES Financials You get a rough overview of IDES Financials from the following figure.

Figure 41: IDES Financials: Das integrierte Modellunternehmen für Forschung und Lehre, 2005

You already learned about the most important terms in this area. With respect to the case studies implemented in company code 1000, it is essential to recognize which chart of accounts, credit control area, and most importantly which controlling area (1000) play a role.

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3.3.3 IDES sales and distribution You are already familiar with the most important terms of sales and distribution.

Figure 42: IDES sales and distribution: Das integrierte Modellunternehmen für Forschung und Lehre, 2005

You can learn the following from the figure above: e.g., sales organization is Frankfurt (1000) and the distribution channel is for the end customer sales (10). In a concrete business scenario, only individual organizational units are involved. In this case i.g.: - company code 1000 – Germany - sales organization 1000 – Frankfurt - sales office 1000 – Frankfurt - division 01 – Pumps - distribution channel 10 – End Customer - credit control for debitors takes place in credit control area 1000

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Figure 43: IDES sales and distribution details: Das integrierte Modellunternehmen für Forschung und Lehre, 2005

3.3.4 IDES Logistics In the following figure, you can see the logistics area with e.g. the purchasing organization, plants, and corresponding warehouses.

Figure 44: IDES logistics: Das integrierte Modellunternehmen für Forschung und Lehre, 2005

With respect to the case studies, it is important to note that warehouses surrounding a plant are numbered consecutively, starting with warehouse number 0001. Correspondingly, more than one warehouse are existent, but only one belongs to the plant 1000 (Hamburg).

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3.3.5 Conclusion You gained a lot of theoretical knowledge about SAP, SAP R/3, SAP ERP, SAP NetWeaver, and IDES. Please bear in mind that this knowledge is the foundation of the following practical application within the case studies, which are the appeal of this course. So please keep in the back of your mind that the theoretical foundations presented this unit and the whole course are relevant to the SAP certification exam.

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3.4 Information about UCC Within the use of the SAP ERP system with the given client-server architecture, the provision and maintenance of the IDES client and the SAP system, respectively, for educational purposes by the SAP university competence center (UCC, by the University of Munich, Germany) is arranged Along with maintenance of the IDES client, the UCC offers: - provision of hardware, - system administration, - system monitoring, - online backups, - coordinated realize changes, and - hotline service in case of technical issues. Local clients provide the use of the SAP system, accessing the UCC SAP server. Clients (i.e. your personal computer) use the latest release of the SAP GUI. The use of the SAP system is enabled by local single-user installations via remote access.

3.5 Summary In the introductory chapters, you learned about SAP as a company, including important milestones. Additionally, you gained a technical understanding of the SAP basis technology. Furthermore, you learned about IDES as a model company with all course-relevant areas. Finally, you heard about the responsibilities of the UCC and technical requirements for using SAP.

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4 Practical application – Installation and Navigation In the following chapter, you will learn how to handle SAP ERP systems. After completion of this unit, you will be able to navigate independently through business processes and case studies in the SAP GUI. This chapter offers an extensive explanation of the SAP GUI to ensure that you learn basic skills for partially substantial and complex navigation in SAP.

4.1 Setting up a connection With the following description of the Remote-Login-Procedure you are able to access the SAP system from any Internet Connection using your Internet Service Provider. First step is to install the SAP GUI.

4.1.1 Installation of the SAP-GUI 1. Download the SAP-Frontend (SAP-GUI) from the download area of this course. You need two files: the SAP-GUI and the SAP-GUI Patch.

Figure 45: SAP GUI Installation – Step 1: SAP-System-Screenshot

2. Unpack (!) the files with any archiving software (WinZip, WinRar etc.) in a folder on your PC.

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Figure 46: SAP GUI Installation – Step 2: SAP-System-Screenshot

3. Follow the path: „Folder with the unpacked SAP files\NW_2004s_Presentation\PRES1\ GUI\WINDOWS\WIN32“. Double-click on the file „SetupALL.exe“ to start the installation process.

Figure 47: SAP GUI Installation – Step 3: SAP-System-Screenshot

4. Click Next (Weiter) on the following Installation screen. Now you should see the following screen:

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Figure 48: SAP GUI Installation - Step 4: SAP-System-Screenshot

5. Note: If your Windows installation is not equipped with the latest .Net-Framework of Microsoft, you will get a note in the field on the right side. If this is the case, update the .Net Framework from the web-side of Microsoft. Choose one of the links in the field (x86  standard OR x64  64 bit) depending on your Windows Operating System.

Figure 49: SAP GUI Installation – Step 5: SAP-System-Screenshot

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Integrated business processes with SAP ERP 6. After installation of the .Net-Framework, go back to the SAP GUI installation. Select the options SAP GUI for Windows and Business Explorer and click the Next-Button (Weiter) to start the installation. 7. After the installation process is finished, copy the file saproute.ini, which you can download from the download area of this course, in your local Windows directory C:\Windows or C:\WINNT. Overwrite an existing file if necessary.

Figure 50: SAP GUI Installation – Step 6: SAP-System-Screenshot

8. Install now the SAP GUI patch by double clicking the second file you have downloaded from the download area of this course. After completing the Patchinstallation, the SAP GUI is ready to use.

Figure 51: SAP GUI Installation – Step 7: SAP-System-Screenshot

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4.1.2 Activating your IP-Address When you connect to internet, your provider assigns you a dynamic IP-Address. This IPAddress is unknown to our SAP system, thus it has to be activated. When you disconnect your internet connection and try to log on again to the SAP system, you need to activate your IPAddress once again, since your internet provider assigns you a new IP-Address. Note: Every time you want to connect to the SAP system, you must activate your IP-Address first. The following procedure has to be accomplished every time you try to connect to the SAP system: 1. To start the Remote-Login procedure go to the URL: http://g11as1.informatik.tu-muenchen.de:8011/remotelogin Now you see the Remote-Login pop-up of the HCC Munich. Enter your User-ID (Benutzerkennung) and your Password (Passwort) for the Remote-Login, which were given to you in the welcome-mail.

Figure 52: Remote-Login – Identification

2. If the User-ID and the Password are valid, you should see the following screen with your actual IP-Address that was assigned to you by your provider. Now you can activate this IP-Address by selecting the button Activate IP: xxx.xxx.xxx.xxx (xxx.xxx.xxx.xxx is your actual IP-Address).

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Figure 53: Remote-Login – IP-Activation

When you press the button, you get the notification that your IP is activated. Now you can close the browser window. Note: The IP-Address activation is only temporary. That means that your IP is deleted from the SAP server at least once a day. Especially when you work on nights (0:00), you should log on the SAP system immediately after the IP-Address activation. Furthermore, connection errors, interferences, or breakdowns of your internet connection or the reset of your IP-Address by your internet provider will result in connection failures to the SAP system. If this is the case, then you have to reactivate your IP-Address.

4.1.3 Creating a Logon-Group Item After activating your IP-Address you have to configure a Logon-group item (= system-entry). This configuration has to be done only once. For further sessions, you just use this Logon group to connect with the SAP system. Note: Independently from this configuration, you have to activate your IP-Address every time you want to connect with the SAP system. The following explanations regard a configuration with the System-ID G74. Replace the System-ID G74 with the System-ID from your welcome-mail (it might be the same system!). 1. Select „Start/Programs/SAP Front End“ and start the SAP Logon.

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Figure 54: Start des SAP Logon

2. Select the Systems-Tab and choose the button „New Items” to create a new LogonItem.

Figure 55: SAP Logon - Configuration – Step 1: SAP-System-Screenshot

You attain to the following screen:

Figure 56: SAP Logon - Configuration – Step 2: SAP-System-Screenshot

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Select User Specified System and “hcctumremote” from the drop-down-field and press Next. 3. Enter the following data in the following screen. Refer to your welcome-mail for the appropriate data: - Connection Type Group/Server Selection - Description any description, e.g. mySAP ERP - System-ID the System-ID from your welcome-mail - Message Server the Message Server ID from your welcome-mail - SAProuter hcctumremote - Press Enter. If any error occurs at this step, check the following points: - is your IP-Address (still) activated? - have you copied the saprouter.ini file into the Windows-directory? - is your internet connection available and/or stable (do not use insecure WLANNetworks)? - is a firewall activated on your Computer or Router that denies the communication efforts of the SAP software?

Figure 57: SAP Logon - Configuration – Step 3: SAP-System-Screenshot

4. Choose High Speed Connection from the next screen. If you do not have a DSL- or Cable-Connection, choose the option (Low Speed Connection) and select Next.

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Figure 58: SAP Logon - Configuration – Step 4: SAP-System-Screenshot

5. Choose English from the drop-down-field Language and select Finish.

Figure 59: SAP Logon - Configuration – Step 5: SAP-System-Screenshot

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Integrated business processes with SAP ERP 6. When you now start the SAP Logon you should see the new System Item „mySAP ERP“. Select your new System Item and choose Log On. To connect with the SAP system. Setting up a logon group is not necessary for subsequent log on procedures. Merely the IP needs to be activates for each log on procedures.

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4.2 Logging on and off

4.2.1 Logon Firstly, you need to connect with the SAP system on the application server with a client to be able to work with SAP ERP. Therefore, the SAP GUI needs to be installed on your personal computer. Via SAP Logon, you can now run SAP GUI. Select your newly established logon group and click on log on.

Figure 60: SAP Logon – logging on to the SAP system – Step 1: SAP system screenshot

Bow you can see the logon screen, which looks quite similar to the figure below. SAP systems are client-based. This allows you to process more than one business case at the same time in the SAP system. From an organizational perspective, a client is an independent unit in the system. It features an own data environment and thus own master data, transaction data, dedicated user master records, chart of accounts, and specific customizing parameters.

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Figure 61: SAP Logon –logging on the SAP system – Step 2: SAP system screenshot

On the screen, you need to enter the client, the user with password, and the language. For client number, select the client you received in your access data. Use the username and password you received from your tutor. Use language EN. After that, click enter or . In case you log on for the first time, the system prompts you to choose a personal password.

Figure 62: SAP Logon – logging on to the SAP system – Step 3: SAP system screenshot

Subsequently, confirm pressing Enter or

.

Note: The SAP system logon procedure is not case sensitive Confirm the following copyright note, which will be displayed only at the time of the first logon, pressing Enter or

.

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Figure 63: SAP license agreement: SAP system screenshot

The SAP ERP system logs multiple logons. This is due to both security and license-related reasons. In case a user tries to log on twice or more, the system displays a warning. This message offers you three options: - Exit current session(s) and log on again. - Maintain current session and additionally, log on again (will be logged). - Abort new logon procedure Now you can see the SAP Easy Access Menu. The SAP Easy Access is the initial standard screen, which will be displayed after logging on. You can navigate using the tree structure on the left hand side of the screen.

Figure 64: SAP Easy Access Menu: SAP system screenshot

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4.2.2 Logoff Under the menu path System  log-off, you can terminate your current session. A safety message will be displayed telling you that you may lose unsaved data.

Figure 65: SAP system – logoff: SAP system screenshot

After making sure that you saved all work, confirm the message clicking YES.

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4.3 Navigation in SAP ERP

4.3.1 SAP ERP Screen The SAP ERP screen features the following elements: Menu bar

Figure 66: Menu bar: SAP system screenshot

The menu items displayed in the menu bar depend on the current application, i.e. they are context-sensitive. In most menus, you will see the following items: System function bar

Figure 67: System function bar: SAP system screenshot

The icons of the system function bar are available on every SAP ERP screen. Icons not applicable to a particular screen grayed out. When you leave your curser on a particular icon, the name and meaning, respectively, will be displayed Title bar

Figure 68: SAP Easy Access title bar: SAP system screenshot

The title bar names the action you are currently processing. Application tool bar

Figure 69: Application tool bar: SAP system screenshot

The application tool bar shows icons that you can use for your current application. SAP Easy Access Menu

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Figure 70: SAP – Easy Access Menu – detail view 1: SAP system screenshot

The SAP Easy Access Menu is the initial standard screen of SAP. You navigate in the system using a clearly arranged tree structure. When clicking on the small, triangular icons, the corresponding path opens. Your menu tree is displayed according to your role. Status bar

Figure 71: Status bar: SAP system screenshot

The status bar displays information about the current system status, e.g. alarm and error messages.

4.3.2 Navigation There are three options in SAP to open transactions: Easy Access Menu You can open transactions via path structures, navigating through the Easy Access Menu. To open a particular transaction, double-click the corresponding entry.

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Figure 72: SAP – Easy Access Menu – detail view 2: SAP system screenshot

Favorites If you use a particular transaction quite frequently, you can drag & drop it into the favorites list. Then, you can open them from the list by double-clicking them – without navigating through the menu. To delete particular transactions from the favorites list, press the DEL button or select the entry (click on the transaction once) and select

in the application tool bar.

Figure 73: SAP – Easy Access Menu – assign to favorites: SAP system screenshot

Transaction code Entering a transaction code is the fastest way to open a transaction in the SAP system. A mostly four-digit transaction code is assigned to each commercial transaction in SAP. If you know the code for a particular transaction, you can enter it in the command field. After confirming with Enter you can see the initial screen of the particular transaction.

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Integrated business processes with SAP ERP You can find the command field, in which you enter a transaction code, on the upper left corner of the system function bar. By default, it is hid. By clicking on the triangular icon you can unhide it.

,

Figure 74: command field: SAP system screenshot

To display transaction code in the SAP Easy Access Menu as well, set the flag for display technical names in the menu bar under extras  settings.

Figure 75: SAP – Easy Access Menu – technical names: SAP system screenshot

Note: Since transactions must be concluded in SAP ERP, you need to either abort manually or conclude the transaction by saving the data you entered. When leaving a transaction using , or , you might be confronted with the following dialogue screen:

Figure 76: System prompts you to save: SAP system screenshot

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4.4 Session concept It might be useful to process one, two, or more transactions at the same time while working on the SAP system. SAP ERP allows you to work with more than one task (up to six) at the same time. To create a new session from anywhere in the system, choose system -> create session from the menu bar of the SAP Easy Access Menu or . To close a session, choose system -> end session or

.

4.5 SAP ERP help The SAP system features multiple help options. The F1 and F4 help functions are used quite frequently. Using F1, you get explanations for fields, menus, functions, and messages. With F1, you can receive technical information as well using the

button.

Using F4, you get help regarding input parameters. You can open the F4 help function alternatively using the button right next to a selected field

.

You can find additional help in the help menu. The menu entry application help offers context-sensitive help regarding the current screen you are working with. The link to the SAP library forwards you to the online help, which you can access via internet as well (help.sap.com). The menu entry glossary opens an extensive dictionary for SAP-related terms. Using the SAP Service Marketplace, you will be forwarded to the SAP service website [Link:service.sap.com].

Figure 77: help menu: SAP system screenshot

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4.6 Data sheet In the download area of this course, you can find the data sheets, one for following navigation unit and one for each case study. Data sheets serve mainly two purposes. On the one hand, it is important for you to list particular data during the case studies, e.g. order number, document number, since you will use them later again. On the other hand, we can trace and check processed transactions with the listed data. While working with the system, please make sure that you carefully complete the data sheets and send the corresponding data sheet after the navigation unit or each case study, respectively, via email to the email address provided in your welcome email for this course. Important information! Please understand that we can only answer question regarding the SAP course or possible problems, when you use the given email address for correspondence. This is also applicable for submitting data sheets. Additionally, we kindly ask to comply to the following points in case of problems or errors during the case studies to guarantee a fast and smooth support: - Detailed description of the problem and the corresponding script passage - Summarize all already existing records of the particular data sheet. - Mention your three-digit (WIPx-yy) user number and your three-digit client number Further on, please comply with the following naming rules. Non-compliant data sheets will not be accepted. Data sheet 0. Introduction 1. Procurement 2. Material Planning 3. Lifecycle Data Management 4. Manufacturing Execution 5. Inventory and Warehouse Management 6. Sales Order Management 7. Human Capital Management 8. Financial Accounting 9. Management Accounting 10. Enterprise Asset Management 11. Project Management

naming 00-introduction-xyy-zzz-surname.doc 01-procurement-xyy-zzz-surname.doc 02-material_planning-xyy-zzz-surname.doc 03-life_cycle-xyy-zzz-surname.doc 04-manufacturing-xyy-zzz-surname.doc 05-inventory_management-xyy-zzz-surname.doc 06-sales_order_management-xyy-zzz-surname.doc 07-human_capital_management-xyy-zzz-surname.doc 08-financial_accounting-xyy-zzz-surname.doc 09-management_accounting-xyy-zzz-surname.doc 10-enterprise_asset-xyy-zzz- surname.doc 11-project_management-xyy-zzz-surname.doc

Thereby replace: - „xyy“  your three-digit number, which was referred to you at the beginning of this course, without “WIP” - „zzz“  the client number that you are using - „surname“  your surname

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4.7 Navigation unit for SAP ERP If you have any questions or problems during this unit, please contact your tutor via email (use the email address named in the initial email of this course). A discussion forum is available as well.

4.7.1 System log-on Select the particular system for this course. Thereby, use the client from you access data as well as the username and initial password you were assigned. For language, select EN. When logging on for the first time, the system prompts you to select a new, user-specific password which you need to enter twice.

4.7.2 User-specific settings If still pending, set the flag for display technical names in the menu bar under extras  settings to display transaction code in the SAP Easy Access Menu as well.

1. Sessions How many sessions can you at maximum create at the same time? ______________________________________________

2. Transactions What are the names of the transactions that you can open in the SAP standard menu via the following paths (SAP Easy Access menu) and what is the corresponding transaction code? Tools  Administration  Monitor  System Monitoring  User Overview Transaction name: _______________________________ Transaction code: _______________________________ Accounting  Financial Accounting  Customers  Master Records  Display Transaction name: _____________________________ Transaction code: ______________________________ Which business processes are represented by the following transaction codes? VA01: ______________________________________________ MMR1: ______________________________________________ MM01: ______________________________________________ MM02: ______________________________________________ page 85 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

3. Maintaining favorites To assign favorites to lists, you should firstly create folders: Favorites  Insert folder. Choose a user-defined name for the folder. You can create as many folders as you link. You can drag & drop folders. To create favorites, select particular transactions from the SAP Easy Access menu that you need for the case studies. Select them and choose Favorites  add to Favorites to add transactions to your favorites list. You can move them using Favorites  Move  Up/Down. Additionally, you can add favorites using drag & drop. Add the following transactions to your favorites list: MMR1 – create raw material via the menu path: Logistics  Materials Management  Material Master  Material  create (special)  raw material MM03 – display material via the menu path: Logistics  Materials Management  Material Master  Material  Display  Display Current You can also add external links to your favorites list. Please add a link to the SAP website of the chair Information Systems for Production and Operations Management http://www.erp4students.eu.

4. Using the help functions F1 help: Open the transaction VA01 and click in the sales organization. Next, choose the F1 help function. What is a sales organization (bullet points)? _________________________________________ _________________________________________ In case the system displays an empty screen when opening the F1 help function, you can choose Help  Settings and set the button to modal dialog box. Then, SAP F1 help should work even without performance assistant.

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Integrated business processes with SAP ERP F4 help : Close the screen displaying the definition of a sales organization. However, remain in the initial screen of transaction VA01. Click in the distribution channel field. What are the names of the first three distribution channels and which sales organization are they assigned to? Sales organization Distribution channel Name 1. ___________________ ___________________ ___________________ 2. ___________________ ___________________ ___________________ 3. ___________________ ___________________ ___________________ Please submit now the carefully completed data sheet via email (using the email address you received with the initial email of this course).

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Integrated business processes with SAP ERP

4.8 Answers to the navigation unit 1. Sessions How many sessions can you at maximum create at the same time? 6, in case you try to create a seventh session, you will see the following message:

Figure 78: SAP message: SAP system screenshot

2. Transactions What are the names of the transactions that you can open in the SAP standard menu via the following paths (SAP Easy Access menu) and what are the corresponding transaction codes? Tools  Administration  Monitor  System Monitoring  User Overview Transaction name: user list Transaction code: SM04 Accounting  Financial Accounting  Accounts Receivable  Master Records  Display Transaction name: Display customer (accounting) Transaction code: FD03 You can receive further information about a (selected) transaction pressing the shift-key and F11.

Figure 79: Display customer (accounting): SAP system screenshot

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Integrated business processes with SAP ERP Which business processes are represented by the following transaction codes? VA01: create sales order MMR1: create raw material MM01: create material MM02: change material

3. Maintaining favorites Add the following transactions to your favorites list: MMR1 – create raw material via the menu path: Logistics  Materials Management  Material Master  Material  create (special)  raw material MM03 – display material via the menu path: Logistics  Materials Management  Material Master  Material  Display  Display Current You can also add external links to your favorites list. Please add a link to the SAP website of the chair Information Systems for Production and Operations Management http://www.erp4students.eu. You can add URL links by clicking with the right mouse button in the SAP menu on favorite and choose add other object. Select either web address or file name and confirm pressing Enter.

Figure 80: Favorites: SAP system screenshot

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Integrated business processes with SAP ERP

4. Using the help functions F1 help: Open the transaction VA01 and click in the sales organization. Next, choose the F1 help function. What is a sales organization (bullet points)?

Figure 81: Performance Assistant: SAP systems screenshot

F4 help: Close the screen displaying the definition of a sales organization. However, remain in the initial screen of transaction VA01. Click in the distribution channel field. What are the names of the first three distribution channels and which sales organization are they assigned to?

Figure 82: input help, F4 help function: SAP system screenshot

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Integrated business processes with SAP ERP

4.9 Summary In this unit, you learned about the SAP ERP graphical user interface. You are now able to log on to the SAP system. Furthermore, you are now familiar with the different navigation options in SAP ERP and you can handle them. Additionally, you can use the SAP ERP help functions. You know the difference between F1 and F4 help functions. In addition to adjust your pre-configured user settings, you can maintain your favorites list. Thus, the introductory unit is concluded and you can now start working with the businessrelated case studies. Finally, please submit the carefully completed data sheet to your tutor (use support email address) for the case study introduction. Please comply with the naming rules. Non-compliant data sheets will not be accepted; i.e. rename the document that you downloaded from this course’s download area as follows: 00-introduction-xyy-zzz-surname.doc Thereby, you need to replace xyy with your user number without the “WIP“ and without the hyphen (WIPx-yy) and replace zzz with the number of the client you are working on. Example: Your name is Max Mustermann, you are working on client 901, and your user number is WIP8-99. Then, name the document as follows: 00-introduction-899-901-Mustermann.doc

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