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SAP
Introduction

SAP :- System Application Products in data processing

Language :- ABAP

Programmed Application Business Software

SAP SAP

In 1972 SAP R/1 application invented by 5 Ex-IBM employs.

1979 --- SAP R/2 invented
1992 --- SAP R/3 invented

1 -- One Tier Architecture

2 -- Two Tier Architecture
3 Three Tier Architecture

P :- Presentation Layer
A :- Application
D :- Databasic Layer

P + A + D
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One Tire --

Two Tire -- P + A + D

Three Tire -- P + A + D

There are several versions in SAP R/3 (1992)

Version -- 1.0
2.0
3.0
4.0
4.6B
4.7C
2000s ECC :- Enterprises Central Component
EHP :- Enhancement Packages

ECC 5.0
ECC 6.0
ECC 6.0 Ehp 1
Ehp 2
Ehp 3
Ehp 4
Ehp 5
Ehp 6
Presently we are using : ECC 6.0 EHP 6
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There are basically 3 Modules in SAP

1. Technical
a. ABAP
b. BASIS
c. BI/BS

2. Functional
a. MM :- Material Management
b. PP:- Production Planning
c. SD:- Sales & Distribution
d. FICO:- Finance & Controlling
e. QM:- Quality Management
f. Etc(40+ module)

3. Industry Specific ( IS )
a. Retail
b. Oil & Gas
c. Real Estate

SAP R/3 ECC EHP 6 SAP having 2 services

L1:- Training Server IDES Server (International Demonstration Education System)
L2:- Real Time Server HP, IBM, Delloite

SAP Headquarters in Germany (Walderle)

130+ countries having branches

1. SAP Bangalore
2. SAP Chatisghar
3. SAP Gurgaom
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SAP Advantages:
1. SAP is business software package
2. SAP ERP product
3. SAP integrate all the module across the countries
4. Transparency in the system
5. Multi languages support ( 40+ languages)
6. Multi currency support ( 150+ currency)

SAP Disadvantage:
1. Expensive

ERP - Enterprise Resource Planning

Firm Company Planning

Material
Money
Man Power
Machine

How best user business plan all the resources is called planning

Difference between ERP & NON ERP

ERP NON-ERP
1. It has centralized data base 1. Decentralized data base system
system 2. NON ERP having dissatisfaction
2. ERP having customer Satisfaction
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TOP ERP products in the world

1. SAP 78% ( SAP integrates all the modules )
2. Oracle Master in finance 15%
3. JD Edwords Master in procurement
4. Baan Production
5. Sale Force Sale
6. People Soft HR

Transparency in system:
ERP wise SAP is the first
System wise
a) Google
b) Microsoft
c) SAP

Implementation Project
Support Project
Roll Out Project
Up-gradation Project

SAP having 2 License:

Project License
a) Wipro
b) IBM
c) Infosys
d) TCS
e) Capgemini

Education License
SAP
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Collides Nandini Milks

Power User PM (Project Manager)

Core User MM SD PP FICO

(HOD) Manager

End User Supervisor

*******************************************************************************************

Infosys

Technical Lead PM Project Manager

MM SD PP FICO

Sr. Consultant (5-8 years)

Consultant (3-5 years)

Jr. Consultant / Associate (0-3 years)

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SAP MM-Business Cycle

Customer

FICO Cash Retable Sale person

Cash Payable Material Management

Vender Production Planning

Final Production
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Enterprise Structure in SAP & NON SAP

NON SAP Enterprise System

TATA GROUP

Tata Motors Tata Enterprise

BLR HYD

White Field Electronic City Banjarahills Hifi City

*******************************************************************************************

SAP Enterprise System

CLIENT

COMPANY

CO-CODE CO-CODE

PLANT - BRL PLANT - HYD

WHITE FIELD BANJARAHILLS

STORAGE LOCATION STORAGE LOCATION

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Consultant works

BASIS CLIENT - 800 BASIS Training client code

COMPANY - (1-6) alpha/ num

FI

COMPANY CODE ( 1-4) alpha /num

CO
CONTROLLING AREA = COMPANY CODE (1-4)

PLANT (1-4) alpha / num

MM STORAGE LOCATION (1-4) alpha / num

PUCHASE ORG. (1-4) alpha / num

SALE ORGANIZATION (1-4) alpha&num

SD

DIVISION & DISTRIBUTION CHANNEL (1-2) apha&num

HR
HR

PP PRDUCTION DEPARTMENT
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SAP GUI

GUI :- Graphical User Interface

Menu

Comment Bar Standard Tool Bar

Title Bar

Application Tool Bar

Status Bar
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Presentation Layer:

USER
WORK
HERE

Figure 1 Presentation Layer

Application Layer:

Consultant
Work here

Figure 2 Application Layer

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Databases Layer:

Figure 3 Databases Layer

(Note:- Max. user can work on 6 number easy access servers.)

/o :- Is using to creating a new session

/n :- Is using to exit from current screen

/nex :- Is using to exit from GUI

D Basis Di Database

A consultant Ai Application

P User P Presentation
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SAP MM -ENTERPRISE STRUCTURE

1. Enterprise structure is a part of configuration setting.

2. Enterprise structure creation by consultant.
3. Enterprise structure is being created in application layer.

Enterprise Structure

CLIENT

COMPANY

CO-CODE CO-CODE

PLANT - BRL PLANT - HYD

WHITE FIELD
BANJARAHILLS

STORAGE LOCATION STORAGE LOCATION

Enterprise structure: Is where you will specify your organization structure for
your business in the R/3 system.

The definition of organization unit is a fundamental step in any project. It is a

critical factor in how the project will be structured.

Definition: Organization chart or Enterprise structure shall be defined ad per

specific business requirement.
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Client: BASIS

A client has the following attributes:

Client is a commercial organizational unit in R/3 system.
It has its own set of master data with independent table sets.
According to hierarchy, a client occupies the highest level in a SAP system.
Data that is maintained at the client level is valid for all organizational levels.

Company: FICO
consultant.

Controlling Area: Controlling area code having 4 digits alpha &numerical by

CO

Company Code (Co-code): company cod having 4 digits alpha &

FICO consultant.

A company code has the following attributes:

Within client, a company code is an independent accounting unit.
It is a legal entity that has its own profit, loss and balance statement.
It is the smallest unit in an organization for which a complete independent
account set can be replicated.

Plant: Plant, storage location, purchase organization is having 4 digits alpha

MM

The basic points to be noted about a plant are as follows:

Plant is an organizational unit within a company where activities take place. A
plant will produce goods and make goods available for the company.
It is a unit having manufacturing facility, warehouse distribution center, or a
regional sales office within logistic. It subdivides an enterprise in different
aspects.

Storage Location:

A storage location has the following attributes:

Storage location is an organizational unit, which actually differentiates between
different material stocks in a plant.
Storage location is a place where stock is kept physically.
A plant can consist of multiple storage locations. All data is stored at storage
location level for a particular storage location.

Sale Organization: Sale organization, Shipping is having 4 digits alpha &

SD

Distribution channel & Division: Distribution channel & Division is having 2 digits
SD
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Purchasing Organization
The points to be noted about a Purchasing Organization are as follows:
A purchasing organization is an organizational unit under a company or a plant
that is responsible for the procurement activities according to requirements. It is
responsible for external procurement.
A purchasing organization can be at the client level, which is known as a
centralized purchasing organization.
A purchasing organization can also be at the company or plant level, which is
known as company-specific or plant-specific purchasing organization.
Different forms of purchasing can be described as follows:

Centralized Purchasing
Purchasing organization is not assigned to any company code. It procures for all
company codes belonging to different client.

Company-Specific Purchasing
Purchasing organization is assigned to a company code only. The plant belonging to the
company code can purchase through this purchasing organization.

Plant-Specific Purchasing
Purchasing organization is assigned to a plant. Only this specific plant can purchase
through this purchasing organization.

Purchasing Group
The attributes of a purchasing group are as follows:
Purchasing group is an organizational unit responsible for the everyday
procurement activities within an organization.
It is a buyer or a group of buyers responsible for the procurement activities in a
purchasing organization.
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SPRO: SAP Project Reference Object.

SPRO PATH: SAP Menu => Tools => Customizing => IMG => SPRO Execute
Project
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T-CODE

SAP IMG

After SPRO, on the next screen, click on SAP Reference IMG.

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The next screen will appear as follows. This is the final screen from where we can do
configurations.

Application Layer: - consultant work here

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Menu path for MM Configuration

The main menu paths for MM area are as follows:

SAP Customizing Implementation Guide (IMG) => Enterprise Structure =>

Definition (Creating Company).

Define Company T.Code = OX15

Company code T.Code = OX02
Controlling area T.Code = OX06
Plant T.Code = OX10
Storage Location T.Code = OX09
Purchase Org. T.Code = OX08

SAP Customizing Implementation Guide (IMG) => Enterprise Structure =>

Assignment (Assign company code).

Assign Company code to Company T.Code = OX16

Assign Company code to controlling area T.Code = OX19
Assign Plant to Company code T.code = OX18
Purchase Org. to Company code T.code = OX01
Purchase Org. to Plant T.code = OX17

Check Enterprise Structure:

T.CODE = EC01:- Display Enterprise Structure at Company-Code level.
T.CODE = EC02:- Display Enterprise Structure at Plant level.
T.CODE = OBY6:- Company-Code Global Data Overview.
T.CODE = OMSY:- Materials Management view on Company-Code (Change Year)
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Define Company
In this step you can create companies. A company is an organizational unit in
accounting which represents a business organization according to the
requirements of commercial law in a particular country.

Path:- SPRO => IMG => Enterprise Structure => Definition => Financial
Accounting => Define Company.
T.CODE:- OX15

Step1: Click on Clock icon =>

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Company:- Company is the topmost organizational unit after client, which incorporates
individual financial accounting statements of several company codes. A company can have
many company codes. In SAP, it is optional to create a company. The following steps will
take you through the procedure of creating company.

Step2: click the New Entries.

Step3: Fill in all the necessary details such as name of the company, address of the
Company with street number, city, country, and postal code.
Click the Save icon after filling the required information. (Ctrl+s).
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Create Company Code

In this activity you create your company codes. The company code is an
organizational unit used in accounting. It is used to structure the business
organization from a financial accounting perspective.

(We recommend that you copy a company code from an existing company
code. This has the advantage that you also copy the existing company code-
specific parameters. If necessary, you can then change certain data in the
relevant application. This is much less time-consuming than creating a new
company code. See "Recommendations" for more details about copying a
company code.)

Path: SPRO => IMG => Enterprise Structure=> Definition=> Financial Accounting=> Edit,
Copy, Delete, check company code.

T.CODE: OX02
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Step 1: Click on Clock icon:

Step2: Click on => copy, delete, check company code

Step 3: Click on copy icon: (Press F6)

Copy from existing company code to NEW Company code

Step 4: enter existing company code to company code.

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Step 5: After copy company code then click on => Edit Company code data.

Step 6: Click on New Entries.

Step 7: Fill in all the necessary details like Company code, company name along with
city, country, currency, language.

Step 8: Save (Ctrl + S).

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Controlling Area
The controlling area is an organizational unit in Accounting used to subdivide the
business organization from a cost accounting standpoint.

Path: SPRO => IMG => Enterprise Structure => Definition => Controlling => Maintain
Controlling Area.

T.Code: OX06

Step 1: Click on Clock icon.

Step 2: Click on New Entries to create controlling area.

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Step 3: Click on => CoArea =CoCode .

Step 4: Enter you Company code. And press enter.

Step 5: Assignment => controlling area = company code

Step 6: Save (Ctrl + S).

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Create Plant
A Plant is an organizational unit within a company where activities take place. A plant will
produce goods and make goods available for the company. The following steps will take you
through the procedure of creating a plant:

Path: SPRO=>IMG => Enterprise Structure=> Definition=> Logistic General=>Define,

Copy, Delete, check plant.
TCode: OX10

Step 1: Click on => Define Plant

Step 2: Click on NEW ENTRIES.

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Step 3: Fill in all necessary details like plant name along with detailed information
likeLanguage, House no., city, country, region, postal code. (Factory Calendar = W8).

Step 4: Ctrl +S: - Fill all details

Step 5: Click the Save icon after filling the required information. A new plant will be
created.
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Create Storage Location

A storage location is the place where stock is physically kept within a plant.

A storage location has the following attributes:

There may be one or more storage locations within a plant.

A storage location has a description and at least one address.
It is possible to store material data specific to a storage location.
Stocks are managed only on a quantity basis and not on a value basis at
storage location level.
Physical inventories are carried out at storage location level.
A storage location can be assigned to a warehouse number in the Warehouse
Management System. You can assign more than one storage location to the
same warehouse number within a plant.
Storage locations are always created for a plant.

Path: SPRO =>IMG => Enterprise Structure => Definition => Materials Management =>
Maintain Storage Location

T.Code: OX09

Step 1: Enter the name of the plant for which you want to create the storage location.
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Step 2: Click the New Entries icon.

Step 3: Enter the name of the storage location along with its description. Click the Save icon
after filling the required information. A new Storage Location will be created.

Step 4: Save it (Ctrl +S).

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Create Purchasing Organization

From the Materials Management and Purchasing view, the purchasing organization is responsible
for all purchasing activities (including the processing of requests for quotations and purchase
orders, for example).

The purchasing organization is integrated within the organizational structure as follows:

A purchasing organization can be assigned to several company codes. (= Corporate-

group-wide purchasing).

A purchasing organization can be assigned to one company code. (= Company-specific

purchasing).

A purchasing organization can also exist without being assigned to a company code.

1. Since each plant must be assigned to a company code, the latter can be
determined via the plant at the time of each procurement transaction even if
the procuring purchasing organization has not been assigned to a company
code.

A purchasing organization must be assigned to one or more plants. (= Plant-specific

purchasing).

A purchasing organization can be linked to one or more other purchasing organizations.

(= reference purchasing organization) For more on this topic, refer to Assign Purchasing
Organization to Reference Purchasing Organization.

A purchasing organization can be divided into several purchasing groups that are
responsible for different operational areas.

Each purchasing organization has its own info records and conditions for pricing.

Each purchasing organization has its own vendor master data.

Each purchasing organization evaluates its own vendors using MM Vendor Evaluation.

Authorizations for processing purchasing transactions can be assigned to each

purchasing organization.

All items of an external purchasing document, that is, request for quotation, purchase
order, contract, or scheduling agreement, belong to a purchasing organization.

The purchasing organization is the highest level of aggregation (after the organizational
unit "client") for purchasing statistics.

The purchasing organization serves as the selection criterion for lists of all purchasing
documents.

Path: SPRO =>IMG => Enterprise Structure=> Definition=> Materials Management=>

Maintain Purchasing Organization

T.Code: OX08
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Step 1: Click the New Entries icon.

Step 2: Enter the name of the purchasing group along with its description.

Step 3: Click the Save icon after filling the required information. A new Purchasing
Organization will be created.
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Assign Company Code to Company

In this step you assign the company code which you have to include in the group accounting to a
company.

Path: SPRO =>IMG => Enterprise Structure=> Assignment => Financial accounting
=>Assign Company Code to Company.
T.Code = OX16

Step 1: Click on Position.

Step 2: Enter you Company code

Step 3: Enter you company and save it.

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Assign Company Code to Controlling Area.

In this step you assign the company codes for which you want to carry out common cost controlling to a
controlling area.

Path: SPRO =>IMG => Enterprise Structure=> Assignment => Controlling =>Assign
Company Code to Controlling Area.
T.Code = OX19

Step 1: Click on position.

Step 2: Enter controlling area code. (Co.ar = Coco)

Step 3: Select your Controlling area code.

Step 4: Select Assignment of company code(s). (Double click for open)

Step 5: Enter Controlling code and Save it.

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Assign Company Code to Plant.

In the IMG activity "Assignment Plant - Company Code" you assign each plant to a company code.

Path: SPRO =>IMG => Enterprise Structure=> Assignment => Logistics-General =>Assign
Plant to Company Code.
T.Code = OX18

Step 1: Click on New Entries.

Enter company code and plant . Then Save it.
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Assign Purchasing organization to Company Code.

In this Implementation Guide (IMG) activity, you assign purchasing organizations to company codes.

Path: SPRO =>IMG => Enterprise Structure=> Assignment => Materials Management
=>Assign Purchasing Organization to Company Code.
T.Code = OX01

Step 1: Click on Position.

Step 2: Enter your Purchasing Org. code.

Step 3: Enter Company code and save it.

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Assign Purchasing organization to Plant.

In this IMG activity, you assign purchasing organizations to the plants for which they are responsible.

Path: SPRO =>IMG => Enterprise Structure=> Assignment => Materials Management
=>Assign Purchasing Organization to Plant.
T.Code = OX17

Step 1: Click on New Entries.

Step 2: Fill all entries and Save it.

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Display Enterprise Structure at Company Code Level.

T.Code = EC01

Step 1: Click on Structure. Then Click on Navigation.

Step 2: press Enter.

Step 3: Click on Find icon (Ctrl+F). And Enter Company Code.

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Step 4: Double Click on your Company Code.

Display Enterprise Structure at Plant Level.

T.Code = EC02
Same as EC01. At plant level.
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Display Company Code at Global Level.

T.Code = OBY6

Note:- Change Year setting before Master Data Creating.

T.Code = OMSY