Introduction

Overview
• Overview of SAP as a company
• Products and solutions offered by SAP
Objectives
After completing this unit, you’ll be able to:
• Discuss SAP’s milestones and history
• Explain SAP’s products offerings
• Name the central SAP solutions
• Explain the concept and history of an ERP system
• Explain the different between solution and component
Contents
• SAP: The Company
• Product Overview
SAP’s Company History
SAP’s Company History
Year What happened?
1972 Five former IBM employees: Hasso Plattner, Dietmar Hopp, Claus Wellenreuther,
Klaus Tschira, and Hans-Werner Hektor, launch a company called SAP (Systems
Analysis and Program Development). Their vision: to develop standard application
software for real-time business processing.
1973 The first financial accounting software is completed, the RF system. This forms the
basis for the continuous development of other software components in
what came to be known as the R/1 system. (R stands for real-time data processing)
1974 SAP demonstrates its flexibility for the first time. There are already 40 companies
on the reference list.
1976 SAP GmbH (Systems, Applications, and Products in Data Processing) is set up as an
auxiliary sales and marketing firm
1977 The company headquarters moves from Weinheim to Walldorf. For the first time,
SAP installs its system at customer sites outside Germany; two Austrian companies
decide to implement SAP software.
SAP’s Company History
Year What happened?
1979 SAP starts to use its first own server. Previously, SAP employees carried out all
development in the data centers of regional companies.
Intensive work with IBM's database and dialog control system provides the impetus
for a new approach to SAP software. SAP R/2 is brought into the world.
1980 SAP moves into the company's first building. The new data processing
infrastructure is also built.
The palette of products is also increased. The RV order processing software is
added to the product range.
1981 SAP (Systems Analysis and Program Development) dissolved and its rights are
transferred to SAP GmbH (Systems, Applications, and Products in Data Processing)
1982 SAP celebrates its 10th birthday.
Over 250 companies in Germany, Austria, and Switzerland work with SAP software.
SAP’s Company History
Year What happened?
1984 SAP makes further development of SAP's modules.
SAP (International) AG is founded in Biel, Switzerland to deal with foreign markets.
1986 Approximately 100 new orders are received for SAP's asset accounting software.
SAP's new human resources software is made available to customers.
The company makes its first appearance at the CeBIT software trade fair.
1987 SAP software is now available to midsize companies. SAP Consulting is founded to
serve this customer sector.
The standardization of software production becomes an incentive for SAP to start
developing a new generation of software: SAP R/3.
1988 SAP GmbH becomes SAP AG.
In October, 1.2 million shares are listed on the Frankfurt and Stuttgart stock
exchanges. SAP's international business grows; country subsidiaries are established
in Denmark, Sweden, Italy, and US.
Dow Chemicals becomes SAP's 1000th customer.
SAP’s Company History
Year What happened?
1990 SAP invests DM 110 million for R&D, both for the further development of R/2 and
the new development of R/3.
SAP now has over 1700 employees and its revenue exceeds DM 500 million.
1991 SAP presents its R/3 system for the first time at the CeBIT. The product meets with
overwhelming approval due to its client/server concept, uniform appearance of
graphical interfaces, consistent use of relational databases, and the ability to run
on computers from different providers.
SAP has 2685 employees, and has revenues of DM 707 million.
1992 After successful installation at selected pilot customers, SAP R/3 is released to the
market. R/3 Developed based on three-tier client/ server architecture.
SAP intensifies its partner strategy in accordance with the expected high
installation figures for R/3. Independent consulting companies support customers
during the installation of R/3.
SAP’s Company History
Year What happened?
1995 SAP in Germany increases its sales activities targeted at midsize companies
by collaborating with system resellers.
The American company Burger King, Inc. is the 1000th Human Resources customer.
Microsoft also begins to use SAP.
The German Manager-Magazin chooses SAP as its company of the year.
Deutsche Telekom AG implements R/3; it requires 30,000 R/3 workstations and
represents the largest contract in the company's history.
1996 SAP and Microsoft present a joint Internet strategy.
Coca-Cola, the largest soft drinks manufacturer in the world, decides to implement
SAP R/3.
1997 SAP celebrates its 25th anniversary. Among the guests at the official
celebration is the German Chancellor Dr. Helmut Kohl.
SAP's earnings before taxes exceeds the DM billion border for the first time.
Daimler-Benz and General Motors decide to implement SAP R/3 and more then
two million users worldwide work with SAP products.
SAP’s Company History
Year What happened?
1998 From August, SAP shares can be bought on the New York Stock Exchange.
More than 15,000 participants come to the 10th SAPPHIRE USA in LA, where the
main topic is “EnjoySAP.”
1999 mySAP.com strategy as a new direction for the company and its product range,
connects e-commerce solutions with existing ERP applications using up-to-date
Web technology.
Numerous my SAP.com customers are won, like HP.
Almost 15% of the revenue of EUR 5.1 billion is used for R&D.
2000 10 million users, 36.000 installations, 1.000 partners, and 22 industry
Solutions
SAP is the leading global provider of e-business software solutions
that integrate processes within and beyond company boundaries.
SAP is the third largest independent software provider worldwide. With the
continuous extension of the product and services portfolio, SAP changes from a
component to a solution provider.
Nestlé signs the biggest contract in SAP history up to this point.
SAP’s Company History
Year What happened?
2001 The New Economy bubble has burst, but the trust in SAP and its solutions
is not broken, the revenue reaches EUR 7.3 billion.
2003 The solution concept change from mySAP.com to mySAP Business Suite
SAP also introduces a new ERP solution: mySAP ERP.
SAP Labs: Germany, India, Japan, Israel, France, Bulgaria, Canada, US, and China.
2004 Enterprise Services Architecture delivers the first version of SAP
NetWeaver 04.
The new product has more than 1.000 customers. In total, more then 24.000
customers in over 120 countries run 84.000 installations of SAP Software.
SAP became the third-largest independent software vendor in the world, after
Microsoft and IBM.
2010 SAP HANA (High Analytic Appliance) is SAP’s game-changing offering for true real-
time computing developed.
2014 SAP AG became SAP SE that produces business solutions for a wide variety of
industries in world.
SAP Continued Growth
Branch Offices and Subsidiaries of
SAP AG
• SAP has a network of development centers (the SAP Labs), training
centers, and service subsidiaries. SAP has local subsidiaries in more then
50 countries that are responsible for sales, consulting, training, and
services.
• SAP Hosting AG & Co. KG, offers comprehensive hosting services that
enable companies to access the most up-to-date SAP solutions quickly
and effectively. The services are optimally tailored to the requirements of
mySAP Business Suite customers and include evaluation hosting,
implementation hosting, application hosting, remote application
operations, application management, and hosted learning.
• SAP Manage provides SAP Business One, a product developed for small
and midsize businesses (SMBs).
• Steeb is Germany's leading provider of SAP systems for midsize
businesses. It offers high-performance ERP, e-business, and industry-
specific solutions to prepare companies for future challenges.
Branch Offices and Subsidiaries of
SAP AG
SAP's Employees
Reference Customers and Partners
Reference Customers and Partners
• Reference customers are customers who have implemented SAP
solutions successfully and are now prepared to pass on their
experience of the implementation project and production operation.
• SAP's software partner program provides software providers with
standard, defined interfaces. These interfaces can be used to integrate
additional products seamlessly into SAP solutions.
• Service partners support our customers during the selection,
implementation, and operative use of SAP products. These partners
generally have many years of SAP experience and belong to the SAP
Alliance Partner Service and SAP Partner Service.
Social Engagement
Internet Portal
• http://www.sap.com
Enterprise Resource Planning
(ERP)
• An Enterprise is a unit or organization that operates as a
commercial entity.
• An IT system that supports business processes is referred to as an
ERP system.
• ERP system comprises a range of software applications that are
designed to support business processes, such as submitting a
sales order or material procurement for production, etc. Example:
SAP Software.
History of ERP Systems
Product Overview
Product Overview
• mySAP Business Suite
• Allow companies to manage their entire value chain.
• Provide users with consistent results throughout the entire company
network and give your company the flexibility needed in today's dynamic
market situations.
• Consists of a number of different products that enable cross-company
processes.
• For larger companies that have a large number of users and processes
that are constantly changing.
• Focuses on financials, human resources, operations, corporate services.
• mySAP ERP
• Encompasses all vital business processes (accounting, human resources,
and logistics) within a company and provides functions for both
corporate headquarters and small subsidiaries.
Product Overview
• mySAP All-in-One
• Industry-specific or country-specific solutions that are based on mySAP
Business Suite technology and were developed in conjunction with SAP’s
partners
• Preconfigured SAP systems for small and mid-size company with few
employees and relatively stable processes
• Certified by SAP
• Provided and implemented by SAP’s partners.
• SAP Business One
• Comprehensive, integrated ERP solution with an interface that is similar
to MS Windows.
mySAP Solutions
• mySAP Business Suite consists of individual solutions. Each solution
has its own focus area and provides functions to map this area in a
flexible and comprehensive way. These applications can be purchased
as an entire suite or individually.
• All the solutions are based on the SAP NetWeaver technology
platform.
Solutions and Components
• Solutions are SAP's products seen from the point of view of the
customer, with an outside-in focus on company processes.
• Components represent SAP's technical view of software with an
inside-out focus.
Solutions and Components
• Solutions are named mySAP {cross-industry application} or SAP
for {industry or industry segment}
• Components – the (technical) detailed view – have the prefix SAP.
• Example:
• mySAP Customer Relationship Management (mySAP CRM) is the solution
• SAP ERP Central Component, SAP NetWeaver Portal, SAP NetWeaver
Business Intelligence, and SAP Customer Relationship Management are
technical parts of mySAP CRM.
Solutions and Components
SAP NetWeaver
• SAP's application and
integration platform is the
technical foundation for
mySAP Business Suite,
SAP Industry Packages, and
SAP xApps. It delivers
a complete, open, and flexible
infrastructure that allows you
to easily integrate SAP and
non-SAP components.
• SAP NetWeaver is the latest
technology for data
integration from SAP that
includes all SAP products
Four Areas of SAP NetWeaver
People Integration
• Ensures that your employees have the information and functions that they require to
perform their work as quickly and efficiently as possible. The functions of the SAP
NetWeaver Portal play a central role here.
Information Integration
• Used to manage all data relevant to companies. This includes data for your own
company and data relating to third parties.
Process Integration
• Ensures that business processes run across system boundaries in a heterogeneous
system landscape. This is achieved by using XML data packages and workflow
scenarios, for instance. SAP NetWeaver Exchange Infrastructure (SAP NetWeaver XI)
plays a central role here.
Application Platform
• Supports Java 2 Enterprise Edition (J2EE) and ABAP (SAP's programming language) in
one environment.
• Guarantees the independence of databases and OSs, the complete support of platform-
independent Web services and company applications, and an open environment that is
based on recognized standards. The central component of the Application Platform is
the SAP Web Application Server.
Components of SAP NetWeaver
mySAP ERP
• mySAP ERP is designed in such a way that companies can implement
only the business functions they need when they need them, thus
simplifying upgrades and reducing total cost of ownership.
• With mySAP ERP, SAP has
set a new standard for ERP
systems. This application
incorporates the mySAP ERP
Financials, mySAP ERP
Human Capital Management, and
also contain basic functions for
operations.
mySAP ERP
• mySAP ERP Financials
• The aim of this solution is to utilize a company's funds effectively and,
therefore, increase profitability in the long term.
• mySAP ERP Human Capital Management
• Every company has employees. They are important resources, and mySAP
ERP HCM enables you to utilize them effectively toward the success of
your company. This solution covers all aspects of human resources, from
recruitment and training through payroll.
• The basic operations functions include, for example, sales,
shipping, production, maintenance, and quality management.
mySAP ERP
• mySAP ERP Operations
• Manage and streamline the day-by-day activities. They can automate
processes to reduce costs and waste, manage your production cycle, and
provide self-service opportunities for customers.
• mySAP ERP Corporate Services
• Manage external activities that are associated with real estate, corporate
travel, corporate assets, and environmental health and safety issues.
Evolution of ERP
mySAP Business Suite
• The core features and solutions from mySAP ERP are enhanced
and extended through the following applications in the mySAP
Business Suite:
mySAP Business Suite
mySAP Customer Relationship Management
• mySAP CRM is an application that puts the customer first. The customer can
contact companies through a number of communication channels.
mySAP Product Lifecycle Management
• This application offers functions for product development, product safety,
quality, and maintenance.
mySAP Supply Chain Management
• Supply chains do not end at the warehouse doors. You can use mySAP SCM to
plan and optimize supply chains across company boundaries.
mySAP Supplier Relationship Management
• Procurement over the Internet and marketplaces are only two ways to
optimize purchasing. Employees can use this application to provide
procurement with information about demand directly from their work
centers quickly, easily, and effectively.
Industry Portfolios
• Automotive
• Banking
• Chemicals
• Healthcare
• Logistics Service
Providers
• Mining
• Oil and Gas
• Public Sector
• Retail
SAP xApps
• SAP xApps are applications
that combine existing,
heterogeneous systems to form
cross-functional processes.
• By using xApps, a company can
optimize a sales process across
multiple systems. Functions
such as a credit check from the
accountancy system, or delivery time and availability (Available
To Promise: ATP) from the logistics systems are used to design an
integrated sales process. The employee works on just one
interface, whereas before they had to perform separate checks in
three different systems.
Characteristics of SAP xApps
Cross-functional
• Can be implemented with a multitude of applications and information sources. This
allows you to run critical integrated processes across heterogeneous systems in
compliance with company's business strategy.
Composite
• Execute flexible workflow and business processes independently of the underlying
infrastructure.
• Synchronize and improve existing business processes.
• Consist of various modules
• Allow user to reuse components from existing business applications to create new
applications.
Cross-system
• Support a complex transfer of information (context, relevance), as well as the
communication within the business itself, thereby simplifying the collaboration of
working groups and sound decision making.
Information-driven
• Enable intelligent processes that are driven by decision-relevant business information.
This enables a company to make informed, strategic decisions, which you can
continually evaluate, and, if applicable, amend.
SAP Solutions for Small & Midsize
Businesses
• mySAP All-in-One
• SAP Business One
• SAP Business By Design
SAP New Technology Advanced
• SAP and Big Data
• Aspects of Big Data are data acquisition, curation, storage, and
optimization, as well as data analysis, visualization, classification, and
prediction.
• Example: SAP HANA
• Cloud Computing
• Is the use of software applications that are delivered as a service over the
enterprise network or over the internet.
• Cloud Terminology: SaaS, PaaS, IaaS, Single tenancy, Multitenancy
• Example: SAP Sourcing, SAP HANA Cloud Portal, SAP Business ByDesign,
SAP Cloud for Customer/ Financials/ Travel
• Mobile Computing
• Three option development: Native app development, Web app
development, Hybrid app development
• SAP Self-Services
• ESS (Employee Self-Services), MSS (Manager Self-Services)
mySAP All-in-One
• Qualified mySAP All-in-One partner solution is a prepackaged,
industry-specific version of mySAP Business Suite with built-in
content, tools, and methodologies for a cost-effective, turnkey
implementation.
• Advantages:
• Rapid implementation and
transparent costs
• Increased productivity and
cost control
• Reliable partners
• Scalability
SAP Business One
• SAP Business One is an easy-to-use business and operational
management solution for emerging and dynamic businesses
ranging in size from 10 to several hundred employees.
• Advantages:
• Rapid implementation
• Lower costs
• Increasedproductivity and cost
control
• Sound business decisions
• Scalability
References
• SAP01 – SAP Overview Participant Handbook, Course Version:
2006 Q2.
Navigation
Overview
• Introduce how to logging on, navigating, and using the SAP help
features
Objectives
After completing this unit, you’ll be able to:
• Create a new logon entry in the SAP logon window
• Log on to any SAP system
• Create multiple active sessions
• Personalize your user interface
• Describe the layout of the SAP Easy Access screen
• List and use the three navigation methods to initiate a transaction in the SAP
system
• Differentiate between the SAP standard menu and the role-based user menu
• Describe the favorite feature and add a transaction to your Favorites menu
• List and describe the forms of help in the SAP system
• Search for information and obtain help using the different help methods in
the SAP system
Contents
• Logging on and Personalizing Your User Interface
• Navigating in the SAP system
• Using Help
SAP GUI and SAP Log On
• User access SAP systems using general front-end programs, SAP GUI
• SAP GUI connects the front-end computer with a specific SAP system
• SAP Logon is another program for starting SAP GUI
• User should create Logon Entry (application server, instance
number, and system ID)
• E.g.
• Description = SAP Edugate
• Application Server = sap1.edugate.or.id
• Instance Number = 06
• System ID : EG1
SAP Logon Program
Logon Process
• User can logon using initial
password from system
administrator
• User should enter new
password during the first time
logon process
• E.g.
• Client = 906
• User = 17SAP01*-##
• Password = 123456
Multiple Logons
• Multiple logon can be used for opening two SAP systems
• Multiple logon tracked by SAP R/3 because of security and licensing
reasons
• Three options in using multiple logon:
• Continue with this logon, end any other logons of this user in
the system
• Continue with this logon, do not end any other logons in the
system (tracked)
• Terminate this logon
Multiple Sessions
• Multiple sessions also can be used for opening two SAP systems
• User should use multiple sessions to view multiple windows
• E.g. In the middle of completing a transaction, user need to verify
some information
• Each session is independent of the others
• System administrator may limit the number of sessions created by
user, because of performance issue
• After done using a session, user should end it
• Before end a session, user should save any data
Multiple Sessions
Personalizing the User Interface
• Change the layout of the SAP Easy Access screen
• Track user’s input history to provide input help
• Display status messages in a pop-up window instead of the status
bar
• Set preferences for how data displays
• Adjust the color and behavior of the screens and fields
 SAP Easy Access

Menu (tree
hierarchy)

Company logo
Screen Structure
Screen Structure
Command field
• Start applications directly by entering transaction code
• Transaction code can be found in the Overview menu of the SAP Easy
Access screen, in the status bar, or in the application itself under
System  Status
Menu bar
• Top line of any primary window in the SAP system
• Menu depend on application
Standard toolbar
• Shown on every SAP screen (activated or deactivated)
Title bar
• Names the function currently using
Screen Structure
Application toolbar
• The application toolbar shows the buttons available in the application that
you are currently using.
Checkboxes
• Checkboxes allow you to select several options from a group of fields.
Radio buttons
• Select one option.
Tab
• Organize several screen areas to improve clarity and organization of data.
Status bar
• Displays information on the current system status (e.g warning, error, and
current transaction code).
Other elements include: input fields and buttons
Three Navigation Options
Using Transaction Codes
• Enter transaction code in the command field to go directly to a
transaction
• Time-saving tips for using transaction codes:

Entry Result
/n Cancels the current transaction
/nXXXX Initiates the specified transaction directly from another
transaction
/o Displays an overview of sessions
/oXXXX Initiates the specified transaction in a new session
/nend Ends the logon session with a confirmation pop-up window
/nex Ends the logon session without a confirmation pop-up window
/i Deletes your current session
Role-Based User Menus
Role-Based User Menus
• When assigned a role, users are assigned not only the menu, but
also the authorizations they require to access the information,
ensuring that the business data is always secure
• Authorization profiles are generated according to the activities
contained in the role, thus restricting the authorizations of each
user in the SAP system to only those activities
• The system administrator can tailor the role-based menu to the
personal requirements of each user by adding or deleting menu
entries
Using Favorites
• Favorites list contain: transactions, links to files, and Internet
addresses
Status Bar
Status Bar
• To display the following system information, choose each in the
first status field:
• System
• Client
• User
• Program
• Transaction
• Response time
• The second status field displays the server to which you are
connected.
• The third status field specified your data entry mode
• By choosing this field, you can toggle between the insert (INS) and
overwrite (OVR) modes.
Help Features
1. Application help: displays comprehensive help for the current
application
2. SAP library: contain all online documentation
3. Glossary: definition of terms
4. Release notes: describe functional changes that occur between
SAP system releases
5. SAPNet: to log on to SAPNet
6. Feedback: to send a message to the SAPNet front end, the SAP
service system
7. Settings: to select settings for help
SAP Library
Field Help: F1
• Help on fields, menus, functions, and messages
• Also provides technical information
Field Search: F4
• Contain information about what values can be entered
References
• SAP01 – SAP Overview Participant Handbook, Course Version:
2006 Q2.
System-Wide Concepts
Overview
• Introduce some systemwide concepts of SAP software
Objectives
After completing this unit, you’ll be able to:
• State the purpose of an organizational element in the SAP system
• Explain the purpose of master data in the SAP system
• Explain the purpose of transactions in SAP training
Contents
• Systemwide Concepts
• Organizational Elements
• Master Data
• Transactions
Data in An Enterprise System
• A central component of any ERP system is the common database that
stores data related to all the processes.
• Without this function, integrating the various processes would be
difficult, if not impossible. Therefore it is essential to understand how
data are organized in an ERP system.
• Data in an ERP system are used to represent the physical system in
which process steps (such as creating a PO and receiving goods) are
carried out. These steps generate data, which represent the outcomes
of the steps.
• There are three types of data in an ERP system: organizational data,
master data, and transaction data.
Systemwide Concepts
• Systemwide concepts that underlie the SAP system include:
• Organizational elements
• Master data
• Transactions.
• Systemwide concepts are the basic elements designed and utilized to
represent a company’s enterprise structure and business processes
within the SAP system.
Systemwide concepts
• Organizational Elements
• A company’s enterprise structure is mapped to SAP applications using
organizational elements
• Master Data
• Created centrally
• Available to all applications and all authorized users
• Also has an organizational aspect because its information in organized
into views that are assigned to organizational elements
• Transactions
• Transaction are application programs that execute business process in
the SAP system
• Eg. Create sales order, change customer master, or display a sales order’s
list report.
Organizational Elements
• Represent the structure of an enterprise
• Mapping company’s enterprise structure to SAP applications
• E.g.
• Companies
• Subsidiaries
• Factories
• Warehouses
• Storage areas
• Sales regions
Client and Company Code
Client
• The highest-level element of all organizational elements in SAP
• Represents the enterprise/headquarters group consisting of many
companies or subsidiaries

Company code
• Each company within the enterprise
• Represents a separate legal entity, the central organizational element in
financial accounting
• Also represents the tax law (national) view of the company, the fiscal
calendar, the local currency, and the tax reporting requirements.

A client can have multiple company code, but a company code must belong to
only one client
Plant
Plant
• Organizational element that perform multiple functions and is
relevant to several processes
• Facility that perform the following functions:
• Manufacture product
• Distribute product
• Provide service or maintenance
• Can be a factory, a warehouse, a regional distribution center, a service
center, or an office.
• It is the central organizational unit of production.

A company code can contain multiple plants, but a plant can belong to
only one company code
Storage Location
Storage Location
• Places within a plant where materials are kept until they are needed.
• A plant can have multiple storage locations, each of which is designated for
different purposes (e.g., staging area, inspection area) or stores specific types
of materials (e.g., semifinished goods).
• More specific storage locations include shelves, bins, cabinets, and trays.
Locations range from small bins to entire buildings, depending on the size of
the materials being stored. For example, the storage location for nuts and
bolts will be a small container, whereas the storage location for an aircraft
will be a hanger.
• Organizations with sophisticated inventory management systems can
manage their materials on a more detailed level.

A plant can have multiple storage locations, but each storage location can
belong to only one plant.
Example: GBI Enterprise
Example: Coca-Cola® Enterprises
Coca-Cola Enterprises is a good example of a company that has several
types of plants. Coca-Cola operates factories that produce both raw
materials and finished goods. Some factories produce the syrup that
forms the basis of the Coca-Cola products you are familiar with. Other
factories combine the syrup with carbonated water during the bottling
process to make the finished Coca-Cola products. The finished goods,
which consist of cases of bottles and cans of Coca-Cola products, are
then shipped to regional distribution centers for storage until they are
transported to end customers, such as retailers. The syrup factory,
the bottling factory, and the distribution center are all considered
plants in Coca-Cola’s SAP ERP system.
Source: Coca-Cola Company Reports & CCE CIO presentation at SAP
Sapphire 2008.
Controlling Area
Controlling Area
• Organizational unit from the Accounting component in the SAP
System, used to represent a closed system for cost accounting
purposes.
• If enterprise has or plans to have uniform controlling structures ,
it makes sense to set up uniform structures for cost accounting.
• A controlling area may contain one or more company codes,
which can operate in different currencies, if required. The
company codes within a controlling area must all use the same
operational chart of accounts (CoA).
Example: GBI Enterprise
Sales Organization
Sales Organization
• Responsible for the sale and distribution of goods and services for
a particular geographical area, such as a regional or national
market.
• Central organizational element in sales order management that
controls the terms of sale to the customer.
• Specifically, a sales organization is:
• Responsible for negotiating terms and conditions of sales for that market.
• Responsible to customers with regard to liability and rights of recourse in
cases of disputes.
• The highest level of aggregation in sales-related reporting. That is, sales
data can be summarized up to the level of the sales organization.
A company code must have at least one sales organization,
although it can have many. A sales organization can belong to
only one company code.
Distribution Channel
Distribution Channel
• The means by which a company delivers its goods and services to its
customers.
• Typical channels are wholesale, retail, and online (Internet sales).
• Just as a company can have multiple sales organizations, it can also
have multiple DCs. Each channel has its own strategies, approaches,
and constraints for getting the goods and services to the customer,
distinctive responsibilities, pricing systems, plants from which
shipments are made, and other characteristics.
A sales organization must have at least one distribution channel,
although it can have more than one. In addition, a distribution
channel can be assigned to multiple sales organizations.
A unique combination of a sales organization and distribution channel
is called a distribution chain.
Example: GBI Enterprise
Example: Intel’s Sales
Organizations
Intel Corporation has six independent operating groups that
manufacture products, each of which operates four sales
organizations: Asia-Pacific, the Americas, Europe, and Japan. Intel
locates its sales organizations close to their largest clusters of
customers. Each of the 24 sales organizations has two distribution
channels, direct and reseller. Thus, there are 48 combinations through
which Intel sells its products to its customers globally.
Source: Intel company reports.
Division
Division
• Most companies consolidate materials and services with similar
characteristics within a unit known as a division.
• Typically, each division is associated with a company’s product
line. A product or material can be assigned to one division only.
• Each division can employ its own sales strategies, such as pricing
agreements with customers.

A sales organization must have at least one division. A division

can be assigned to multiple sales organizations.
Example: GBI Enterprise
Example: Multiple Divisions in a
Major Publishing Company
John Wiley & Sons, the publisher of this textbook, has three main
divisions that serve different reading markets around the world. Wiley
publishes college textbooks through the Higher Education division.
The Professional/Trade division contains the For Dummies,
Frommer’s, Betty Crocker, CliffsNotes, and Webster’s Dictionaries
series, as well as several other popular brands. Wiley’s third division is
the Scientific, Technical, Medical, and Scholarly (STMS) division,
which is the world’s largest publisher of professional and scholarly
journals and books. Although the physical products (books/journals)
and the geographic regions are similar for all three divisions, the
audience, authors, and distribution channels for each division
vary greatly. Wiley has learned that by grouping its brands and the
employees who are responsible for their success into three divisions,
they can achieve greater synergies and operate more efficiently.
Source: John Wiley & Sons company reports.
Sales
Area
Organizational Units and Positions
Organizational Units
• Describe the various business units that exist in an enterprise
• Loosely defined as functional, regional departments, or as project
groups
• E.g., Customer Service, Productions

Positions
• Individual employee assignments in the enterprise
• E.g., Head of Customer Service, Customer Service Representative
Master Data
• Represent entities associated with various processes
• Created centrally and available to all applications and all authorized
users
• Data records always consistent, up-to-date, and free of redundancy
• Basic information that can be accessed in different contexts
• Its information is organized into view that are assigned to
organizational elements
• Segmented structure of master records flexibly depict the various
organizational structures of any operation
Customer Master
• A customer master contains key information that defines the
business relationship between a company and its customer.
• Company code data controls the posting procedure and subsequent
processing, such as payments and dunning. Sales organization data
provides information on customers for support execution of such
business processes as entering sales orders, shipping, billing, and
processing payment.
• The customer master's “three-part structure” represented by:
1. General Data: This data is equally relevant to every company code and every sales
organization within a company.
2. Company Code data: This data reflects company-specific agreements with the
customer; valid for acconuting.
3. Sales Area data: This data is necessary for sales and distribution.
Customer Master
Vendor Master
Material Master
• The material master contains all of the key information a company
needs to manage a material within its organization; defines how a
product is sold, manufactured, purchased, inventoried, accounted,
and costed.
• The information in the material master is grouped into views that are
organized by business function.
• The Client or Basic data are relevant for all sales areas and are valid for all
organizational units within a client.
• The Sales Organization data are valid for the respective sales organization and
distribution channels.
• The Plant also relevant for sales and distribution and valid for respective
delivering plant.
• A Storage Location is a place where you physically store the materials. In the
material master, this grouping includes data for the physical inventory of materials,
inventory management, requirement planning, and so on.
• The majority of the views in a material master are at plant level.
Material Master
Personnel File
• Personnel files are master data records used primarily by mySAP ERP
Human Capital Management.
• These master records follow the same basic segmented structure, as
do other master records.
• This record is structured to classify employee information in terms of the
organizational unit assigned to the employee; position, group, and status in the
organization, personnel area, and so on; and personal details of the employee such
as name and number, address, basic pay, and bank details.
• Personnel record is maintained for any employee in an organization
irrespective of their status.
• It does not matter whether the employee is a trainee, an active employee, or
retired.
Organizational Management
• The organizational elements used by mySAP HCM are
unique and, as a group, they are referred to as
Organizational Management. This function quickly and
efficiently map current organizational and reporting
structure with its organizational objects :
• organizational units,
• Jobs
• Positions
• and tasks.
Organizational Management
• Organizational units
• Describe the various business units that exist in your enterprise.
• Multiple organizational units and their relationships form the
organizational structure
• Can be loosely defined as functional or regional departments or as project
groups depending on the type of organization
• Jobs
• Serve as descriptions, or templates, that apply to several positions with
similar requirements, tasks, or other characteristics.
Organizational Management
• Jobs vs Positions
• A position inherits a job’s characteristics, and also define additional
characteristics specific to that position.
• Position are concrete and can be occupied by holders (e.g., marketing
department supervisor), jobs are general classifications of functions in an
organization (e.g., supervisor)
• Jobs serve as descriptions or templates that apply to several positions
with similar requirements, task, or other characteristics
• Job descriptions apply to several different positions with similar
characteristics.
• Persons
• Hold positions within the organizational structure.
• Represent employees in company.
Personnel File
Transactions
• Transactions are application programs that execute business processes in the
SAP system.
• Whenever possible, master data is copied during transaction processing, thus
avoiding re-entry of data. For example, when executing the transaction Create
Sales Order:
• enter the customer master number, all of the relevant customer information will be copied into
the sales order.
• Enter the material master numbers for the items being ordered, the relevant material data will
be copied into the sales order.
• applicable organizational elements must be entered. For example:
• specifying the sales organization information, the appropriate sales group is given credit for
the sales activity
• The designation of the plant/storage location determines product sourcing.
• Whenever a transaction is executed, a document is created. That document, a
data record of the transaction, contains all of the relevant predefined
information from the master data and organizational elements.
Transactions
References
• SAP01 – SAP Overview Participant Handbook, Course Version:
2006 Q2.
Logistics
Overview
• Provide an overview of the various logistics processes covered by
the mySAP Business Suite.
Objectives
After completing this unit, you’ll be able to:
• Discuss the various key operational processes
• Illustrate the integration between the key operational processes
• Outline the tasks associated within the procurement cycle
• Explain how SAP within mySAP ERP supports the key processes in
procurement
• Outline the tasks associated with sales order management
• Explain how SAP within mySAP ERP supports the key processes in
sales order management
• Outline the tasks associated with production planning and
manufacturing execution
• Explain how mySAP ERP supports key processes in production
Contents
• Logistics Overview
• Procurement
• Sales Order Management
• Production
Key Operational Activities
• The basic logistics process comprises procurement of materials,
manufacturing items using these materials, and then sale of the
manufactured products.
• The procurement process is composed of purchasing, inventory management,
and invoice verification.
• Production comprises of planning and manufacturing.
• Sales order management includes creation of the sales order, delivery by the
vendor, and billing.
• Procurement, sales, and production are different key operational
processes often handled in different functional departments, but each
of these key processes triggers activities in the other processes.
• As an example, production might be started by a sales orders or by an independent
demand plan; procurement needs are triggered by a need from production
planning or due to the sell of stocked products.
• These processes can happen independently of each other or as a
group
Key Operational Activities
• Depending on a company's requirements, their products, and their
processes, certain operational activities may play very different roles
with very different priorities.
• For example, in addition, several accompanying process Quality Management,
more important than an actual sales process.
• All of these processes needed by a company are part of the mySAP
ERP solution.
• Procurement, Sales, and Production are considered to be the primary operational
activities. Secondary activities might include Quality Management, Plant
Maintenance, Customer Service, and Warehouse Management.
• The process importance is determined by a company’s needs.
• All of the key operational processes integrate with each other and can
be running within one central ERP system.
• They also integrate with mySAP ERP Financials and mySAP ERP Human Capital
Management.
Key Operational Activities
Enhancing Processes with mySAP
Business Suite
• The operational processes delivered through mySAP ERP can be
extended with the solutions included in mySAP Business Suite.
• For example:
• Optimize and centralize company’s production planning processes by
using mySAP SCM.
• Expand company’s marketing and sales capabilities by using mySAP CRM.
SCM Extends Production
• The company may
optimize and centralize
its production using
mySAP SCM.
• It includes features such
as advanced planning
systems and covers
functions of sales order
management.
CRM Extends Sales Order
Management
• mySAP CRM is a
comprehensive solution
for managing business
relationships with
customers.
• It supports all customer-
focused business areas,
from marketing to sales
and service, as well as
customer interaction
channels such as
interaction center,
internet, and mobile
clients.
SRM Extends Procurement
• mySAP SRM manages the
business relationship with the
supplier.
• It provides strategic value
through sustainable cost
savings, contract compliance,
and instant assessment, with
tools to drive superior results
through end-to-end source-to-
pay process.
• Activities such as spend
analysis, category
management, requisitioning,
sourcing, operational
contracts, invoicing, and
supplier management are part
of an integrated platform.
Procurement Process Overview
• Procurement in mySAP ERP covers processes such as requisitioning,
purchase order management, and invoice verification, and also
catalog-based self-service requisitioning for maintenance,
repair, and operations (MRO) materials and services.
• Procurement in mySAP ERP improves procurement processes
• Facilitates plan-driven and ad hoc purchasing, complete inventory
management, and intelligent reporting on all procurement activities.
• Enables supplier selection and qualification, contract negotiations, bid
invitations, and vendor evaluation.
• Support for process variant optimization allows individual categories
of material or services to be procured in the most appropriate way
• For example, the subcontracting process supports the delivery of components
required by outsourced manufacturing steps, and procurement through invoicing
plans helps improve rental and leasing processes.
Basic Procurement (Purchase to
Pay) Cycle
Basic Procurement (Purchase to
Pay) Cycle
1) Determination of Requirements
• Purchase requisitions (PRs) can be created manually or generated
automatically by the materials planning and control system.
• This can cover both the demand-based and material requirement planning
(MRP) approach to inventory control. The regular checking of stock levels of
materials defined by master records, use of the order-point method, and
forecasting on the basis of past usage are important aspects of inventory
control.
2) Source Determination
• Requests for quotation (RFQs) can be created manually or by referring to
PR, after PR approval.
• mySAP ERP helps identifying potential sources of supply based on past
orders and existing longer-term purchase agreements.
• This speeds the process of creating RFQ, which can be sent to vendors
electronically via EDI, if desired.
Basic Procurement (Purchase to
Pay) Cycle
3) Vendor Selection and Comparison of Quotations
• mySAP ERP is capable of simulating pricing scenarios, allowing user to
compare a number of different quotations. Rejection letters can be sent
automatically.
4) Purchase Order Creation
• Purchase order (PO) can be created with reference to PR, RFQ, contract, and
material record; by user or automatically by system.
5) Purchase Order Follow-Up
• The status about the delivery date and quantity to be delivered can be
monitored.
• After issuing PO to the vendor, the system will check the reminder periods
specified before and, if necessary, automatically print reminders or expediter
at the predefined intervals, also provide an up-to-date status of all PRs,
quotations, and POs.
Basic Procurement (Purchase to
Pay) Cycle
6) Goods Receiving and Inventory Management
• Goods receipt (GR) can be confirmed simply by entering the PO number (PO
status will be updated). Goods can be received without the PO.
• GR will create material document.
• By specifying permissible tolerances, buyers can limit over- and under-
deliveries of ordered goods.
7) Invoice Verification
• Invoice can be posted before or after GR.
• SAP use goodreceipt/invoice receipt (GR/IR) clearing account
• The system supports the checking and matching of invoices. The accounts
payable (AP) clerk is notified of quantity and price variances because the
system has access to PO and GR data. This speeds the process of auditing and
clearing invoices for payment.
Purchase Orders
• PO is a formal request to a vendor to supply certain goods or services
under the stated conditions.
• PO can be created without reference, or with reference to a PR, a
RFQ, or another PO.
• When entering the purchase order data, the system suggests default
values. For examples:
• The system suggests the ordering address, terms of payment, and freight
(incoterms) from the vendor master record, as well as the material short text, the
material group, and unit of measure from the material master.
• If a purchasing info record already exists in the system, the system copies a price
proposal to the PO.
• Procurement staff can either send the PO to a vendor or carry out a
stock transport order in another plant. In both cases, user can
include the associated freight costs in the purchase order.
Purchase Order
• While creating a purchase order, procurement staff have to enter the
company code, purchasing organization, purchasing group, and also
plant.
Purchasing Organization &
Purchasing Group
• A purchasing organization is the unit within an enterprise that
performs strategic activities related to purchasing for one or more
plants.
• It evaluates and identifies vendors, negotiates contracts and agreements, pricing,
and other terms. An enterprise may have one or more purchasing organizations.
• Typically, there are three models of purchasing organizations: enterprise level,
company level, and plant level.
• A purchasing group is an individual or a group of individuals who
are responsible for purchasing activities for a material or a group of
materials.
• Whereas purchasing organizations are responsible for the strategic aspects of
purchasing, such as negotiating contracts with vendors, purchasing groups carry
out the day-to-day purchasing activities.
• These activities include planning, creating PRs, requesting quotations from
vendors, and creating and monitoring POs.
• The purchasing group also serves as the main point of contact with vendors.
Self-Service Procurement
• Self-service requisitioning means purchasing non-strategic goods,
that is, goods not directly linked to the value chain (often called MRO
items), like: office materials, work clothes, and IT equipment.
• The self-service procurement (SSP)
empowers employees to easily
procure needed materials using
a Web-based shopping cart.
• This shopping cart enforces
compliance with corporate
purchasing policies.

• SSP reduce administrative burden of purchasing professionals (the

procurement process will be faster and more responsive) and allow
them to focus on managing relationships instead of working
exclusively on transaction
Inventory Management
• GR is the next step after issuing
PO to the vendor
• During GR, the staff need to check
various things, such as the right
material has been delivered or not,
whether the right quantity has
been delivered or whether there
has been over or under delivery,
whether perishable goods are within their minimum shelf life.
• Several GR items can be entered against a PO item in one operation.
Inventory Management
Advantages of posting a GR to stock with reference to a PO:
• The goods receiving point can check whether the delivery is the same as the
PO data, that is, whether the goods that were ordered have been delivered.
• The system suggests data from the PO when user enter the GR (e.g., items
and quantities). This makes it easier to enter the GR and check over- or
under-deliveries when goods arrive.
• The PO history is automatically updated as a result of the deliveries. The
purchasing department can send a reminder about late deliveries.
• When user post a GR to the warehouse, the system creates a material
document containing information such as the material delivered and the
quantity delivered. The system also records the storage location for the
materials user place into stock in the plant.
• In transactions relevant for material valuation, the system creates at least
one accounting document that records the effects of the goods movement on
the value of the stock.
Invoice Verification
• The procurement process is concluded by the invoice verification process,
during which invoices and credit memos are entered and the contents
and prices are checked for accuracy.
• Note that payment and evaluation of invoices is not involved in this process. The actual
payment is handled by the accounting department.
• Invoice verification creates a link between Procurement and Accounting.
• When user enter an invoice with reference to a PO, the system suggests
data from the PO and the GR for the PO (for example, vendor, material,
quantity still to be invoiced, terms of payment, and so on).
• If there are discrepancies between the PO or GR and the invoice, the
system warns the user and, depending on the system configuration,
blocks the invoice for payment.
• Invoice is compared to the goods received for quantity and price, then, if
correct, can be used for payment processing. This is known as three-way
verification, in which an invoice is not only compared to a purchase order,
but also to a goods receipt of materials. All data then is stored and
updated in Materials Management and Financial Accounting. After invoice
recording, next step is payment processing.
Invoice Verification
• The posting of the invoice completes the invoice verification process.
The system updates the PO history and Financial Accounting initiates
payment for the open invoice items.
Messages

• All purchasing documents can be issued as messages.

• Each time user create an RFQ, PO, contract, or scheduling agreement, the system
can create a message from the document affected. This message is then placed in
the message queue.
• Two options to issue the message (by printing, e-mail, fax, or EDI) :
• Issue immediately: Issue the messages directly from the queue.
• Issue later: Either schedule a background job that processes the message queue in
determined intervals, or start the issue directly from the purchasing menu.
• For the message issue, user can specify which header texts and item-
based texts the system issues.
• The header text is printed at the top of the PO and contains general information.
• Item texts describe a PO item in more detail.
• User can also include and issue standard texts.
Sales Order Process Overview
• mySAP ERP provides superior insight into sales back-office
processes, including: inquiries, quotations, order generation,
contract, and billing cycle management.
• Businesses benefit from a complete overview of the customer life
cycle, including: order status, billing, payment, and credit
management.
• mySAP ERP also supports Internet sales, sales entered through
mobile devices such as handhelds, and basic call center functionality.
• The Sales Order Processing (or Order to Cash) scenario describes the
complete process, starting with pre-sales activities, moving to the
creation of the sales order (SO), continuing with the SO fulfillment,
and ending with the invoicing of the SO and the parallel process of
the creation of the posting in financial accounting.
Sales Order Processing Cycle
Sales Order Processing Cycle
Pre-Sales Activities
• Pre-sales activities can be inquiries or quotations entered in the
system. These can then be used as reference during the creation of a
SO.
Sales Order Creation and Availability Check
• The SO can adopt information from the pre-sales documents.
• Sales scheduling agreements or sales contracts (long-term sales
agreements) can also be created with reference to a SO and are
supported by the sales process steps.
• During the SO creation, the availability of the material can be
checked to confirm the customer's requested delivery date.
• If the materials are N/A, system will determine the earliest possible delivery
date.
• The system can be configured to calculate availability based on current stock levels
as well as planned receipts of material from either procurement or production.
Sales Order Processing Cycle
Delivery and Goods Issue
• An outbound delivery (OD) is the basis for a process when the
goods are physically moved as well as for the posting of the goods
issue (GI).
• Picking can be fulfilled through the use of the Warehouse
Management system and transportation can be planned and carried
out.
Billing
• As the final step in the sales process, an invoice is issued, which must
also be reflected in accounting.
Sales Order
• During SO creation, the system can carry out basic functions:
• Monitoring sales transaction
• Checking for availability
• Transferring requirements to material requirements planning (MRP)
• Scheduling delivery
• Calculating pricing and taxes
• Checking credit limits
• Creating printed or electronically transmitted documents
• These basic functions may be completely automated or may require
some manual processing.
• The data resulting from these basic functions (for example, shipping
dates, confirmed quantities, prices, and discounts) is stored in the
sales document.
• The resulting data can be displayed by a user and, in some cases
during subsequent processing, manually changed by the user.
Sales Order
• The SO is a document that records what goods have been sold and to
whom, the price, the company code and the name of the sales
organization, and similar details. The relevant information is drawn
from the customer master record and the material master record.
Delivery

• Shipping is an important part of the logistics chain.

• In shipping processing, all delivery procedure decisions can be made
at the start of the process by:
• Taking into account general business agreements with customer
• Recording special material requests
• Defining shipping conditions in the SO
• The result is an efficient and largely automatic shipping process in
which manual changes are necessary only under certain
circumstances.
Shipping Functions
• Deadline monitoring for reference documents due for shipment (SOs
and POs, for instance)
• Creating and processing ODs
• Packing deliveries
• Information support for transportation planning
• Supporting foreign trade requirements
• Printing and transmitting shipping documents
• Processing GI (goods Issue)
• Deliveries currently in process
• Activities that are still to be carried out
• Identifying possible bottlenecks
Outbound Delivery
• The most commonly used document used to support delivery
processed is the OD document.
• In its role as central object of the GI process, OD supports all shipping
activities, including picking, packing, transportation, and GI.
During the OD process, shipping-planning information is recorded,
status of shipping activities is monitored, and data accumulated
during shipping processing is documented.
• When the OD is created, the shipping activities, such as picking or
delivery scheduling, are initiated, and data that is generated during
shipping processing is included in the delivery.
Outbound Delivery
• An OD can be created as follows:
• With reference to a SO
• With reference to a stock transport order
• With reference to a subcontract order
• With reference to a project
• Without any reference
• User can create ODs automatically or manually using worklists.
• User can make agreements with customers for complete and partial
deliveries and for order combinations. ODs can be combined to
form a single group of deliveries.
• A variety of warehouse and sales overview reports allow user to
monitor created ODs and outstanding sales activities.
Picking the Delivery
• Picking means taking goods from a storage location and staging the goods in
a picking area where the goods will be prepared for shipping.
• System settings will allow picking to be carried out:
• Automatically (during OD creation)
• Routinely (at certain times)
• Manually (via an employee request)
• A picking status is recorded in each delivery item for the purpose of
scheduling and monitoring. This status indicates where the item is in the
picking procedure.
• In the system standard settings, it is a prerequisite for a GI to be posted, that
the items that are relevant, have been picked.
• Therefore, a delivery quantity must equal a picking quantity in the OD.
• The Warehouse Management system (WM) is fully integrated in the
Logistics Execution System (LES).
• User can create a WM transfer order directly from the OD. The current status of the WM
process can also be monitored from the delivery or from the SO.
Goods Issue Posting Functions
• The OD forms the basis of GI posting. The data required for GI
posting is copied from the OD into the GI document, which cannot
be changed manually.
• Any changes must be made in the OD itself.
• After GI is posted for an OD, the scope for changing the delivery document
becomes very limited. This prevents any discrepancies between the GI
document and the OD.
• In this way, user can be sure that the GI document is an accurate
reflection of the OD.
Goods Issue Posting Functions
• When user post GI for an OD, the following functions are carried out:
• Warehouse stock of the material is reduced by the delivery quantity
• Value changes are posted to the balance sheet account in inventory accounting
• Requirements are reduced by the delivery quantity
• The serial number status is updated
• GI posting is automatically recorded in the document flow
• Stock determination is executed for the vendor's consignment stock
• A worklist for the proof of delivery is generated
• Multiple ways to post GI :
• Automatically (during OD creation)
• Routinely (at certain times)
• Manually (via an employee request)
Billing
• Billing represents the final processing stage for a business transaction in SO
processing. Information on billing is available at every stage of order
processing and delivery processing.
• Billing functions include:
• Creation of invoices based on deliveries or services
• Issue of credit and debit memos and pro forma invoices
• Cancelling billing transactions
• Comprehensive pricing functions
• Issue rebates
• Transfer billing data to financial accounting
• Like all parts of SO processing in mySAP ERP, billing is integrated into the
organizational structures. Thus, user can assign the billing transactions a
specific sales organization, a distribution channel, and a division.
• Because billing has an interface to financial accounting, the organizational structures of the
accounting department (the company codes as well as the sales organizations assigned to the
company codes) are important.
Billing
• During a billing processing it is possible to create, change, and
delete billing documents.
Billing
• It is possible to create billing documents:
• With reference to a SO document
• With reference to a delivery document
• With reference to external transactions
• By having the system automatically process a billing due list as a background task
• By manually processing from a worklist
• By creating a billing document explicitly
• By combining several SO documents into a collective billing document
• By billing one or more SO documents with several billing documents (this is called
an invoice split)
• By creating an individual billing document for every sales document
Billing and Financial Accounting
• The system automatically posts the amounts to the appropriate
accounts by means of account determination.
• Costs and revenue can be posted to the following accounts:
• Customer accounts receivable
• General ledger (for example, a cash clearing account)
• Revenue
• Sales deductions
• Accruals (for rebate agreements)
• Accrual account
• Accrual clearing account
Document Flow
• The sales documents are individual documents, but they can also
form part of a chain of interrelated documents.
• For example, user may record a customer’s telephone inquiry in the system. The
customer next requests a quotation, which user then create by referring to the
inquiry. The customer later places an order on the basis of the quotation and user
create a SO with reference to the quotation. User ship the goods and bill the
customer. After delivery of the goods, the customer claims credit for some
damaged goods and user create a free-of-charge delivery with reference to the SO.
• The entire chain of documents (the inquiry, the quotation, the SO, the
delivery, the invoice, and the subsequent delivery free of charge)
creates a document flow, or history. The flow of data from one
document into another reduces manual activity and makes problem
resolution easier.
Document Flow in Sales Process
Production
• mySAP ERP helps enterprises manage the full range of manufacturing
activities, from planning to execution and analysis, in a single, end-to-end
system.
• mySAP ERP delivers all elements of a customer-oriented manufacturing
management system and is fully compatible with Just-in-Time (JIT) and
Kanban methodologies. (Manufacturing VS Production)
• By combining information from a variety of business processes (including
planning, cost accounting, Human Capital Management, materials
management, WM, plant maintenance, and quality management), mySAP ERP
supports the development and execution of efficient production plans and
ensures that accurate, comprehensive information is available at any time to
those who need it.
• Businesses can share manufacturing information across the enterprise and
supply network to coordinate production processes and promote
cooperation.
Production
• Manufacturing and production in mySAP ERP, in cooperation with all
other integrated SAP applications, does not only facilitate efficient
production, but also establishes critical links between sales,
production planning, and the factory floor.
• SAP integrates supply chain processes to make the enterprise as
competitive as possible. It integrates seamless with external real-time
process control and laboratory information systems. This represents
a significant advancement for information systems in the repetitive
manufacturing and process industries.
Production
• SAP offers full integration between its project planning,
material requirements planning (MRP), and shop floor
control system modules. Standard interfaces link SAP to
external CAD, product data management, and plant data
collection systems. Therefore, mySAP ERP is also the
state-of-the-art manufacturing system for discrete
manufacturers and engineering-to-order companies.
• Shop floor: the area in a manufacturing facility where assembly or
production is carried out, either by an automated system or by workers
or a combination of both. The shop floor may include equipment,
inventory and storage areas.
• Shop Floor Control: methods and systems used to prioritize, track, and
report against production orders and schedules. They include the
procedures used to evaluate current resource status, and the update of
labor, machine hour, and other associated information as required to
support the overall planning, scheduling, and costing systems.
Production Cycle
Production Cycle
• Production planning: planning the various aspects involved in
manufacturing of a particular material.
• Planned order can be created manually or triggered by another process, such as:
sales order (make-to-order strategy), materials planning (make-to-stock
strategy), or project systems
• Order creation: create a production order as authorization.
• Order release: release production order
• Order printing: taking a printout of the released order.
• Material staging: carrying out all the goods movement for the order
and get then ready for execution.
• Order execution: executing the production.
• Confirmation and GR are the final stage of production where the
manufactured products are confirmed and moved to warehouse with
receipt.
Planning Process Overview
• Production planning involves the acquisition and allocation of
limited resources to production activities to satisfy the customer
demand over a specified time horizon.
• Multiple forecasting models and strategies in mySAP ERP can assist
user in making the best choice.
• User can incorporate the impact of events, such as: marketing promotions and
seasonal influences, into the forecasts.
• User can even override individual values of past demands and forecasts. Full
integration within mySAP ERP makes periodic forecast revisions easy.
• User can break down forecast demands from the planning level to the level of the
individual product.
• Rough-cut capacity planning at the planning level provides a reality check of
resource bottlenecks.
• Forecasts are easily transferred to Demand Management and Master Production
Scheduling (MPS), where they can be offset by incoming SOs.
• User can also add unexpected demands any time.
Production Planning
• Planning is generally divided into several steps. These steps may
be executed independent of each other, or they may collaborate.
Production Planning
Sales and Operations Planning (SOP)
• SOP generates sales plans and production plans using forecast values and
requirements from the Sales Information System and costing/profitability
analysis as inputs for determining requirements.
Demand Management
• Demand Management connects forecasting functionality with production
scheduling. Requirement quantities and dates for finished products and
assemblies based on the plans from SOP are determined.
Master Production Scheduling (MPS) - optional
• MPS allows for critical resources or top-level items to be planned with extra
attention. This procedure ensures that the instabilities in planning are kept
to a minimum.
Production Planning
Material Requirements Planning (MRP)
• MRP is the detailed planning of replenishment schedules for
required components. The output of MRP is either a planned order
or a PR.
• System can automatically create purchase requisitions when
the user runs material requirements planning (MRP).
• MRP is planning tool that evaluates the demand and supply of
material.
• If the demand is greater than the supply and there is an anticipated material
staging, then the system creates purchase requisitions for the shortage
quantity. If the existing and forthcoming supply is enough to fulfill the demand
of a material, then the system does not create any new purchase requisitions.
• MRP can calculates the net requirements of material. MRP also
can convert from planned orders to purchase requisitions for
externally procured material or into production orders in case
of in-house production.
Execution
• The production order is the central data object in shop floor control
and manufacturing execution.
• The production order contains all data relevant to production
objectives, material components, required resources, and costs.
• Covers the demand for either a single material or product or multiple products.
• May specify external operations that are to be processed in an outside workshop.
• User can create a separate rework order that is directly assigned to the primary
production order or insert specific rework operations into an existing order.
• Rework: correcting of defective, failed, or non-conforming item, during or after inspection;
includes all follow-on efforts such as: disassembly, repair, replacement, reassembly, etc.

• Production orders are usually generated automatically or manually

by converting it from planned orders. The complete process includes
several steps:
• Creation and release of a production order
• Goods issues of components
• Confirmation of production activity
• Goods receipts of the finished goods
Execution
• User must release a production order before process it. If the order
status set to Released, then print shop floor papers, issue materials
from stock, and confirm operations.
• Before release a production order, make sure that sufficient manufacturing
capacity is available (use the Graphic Planning Table)
• When releasing a production order, user can set up the system to
check the availability of components and production resources or
tools.
• User can even specify the type of availability check to be carried out (Available-to-
Promise (ATP) calculation) per order type.
• User can either release production orders individually, order by
order, or release them as a group, when the order start dates reach
the release horizon.
Production Order
Master Data in Production Processing
• Bill of Material (BOM)
• Identifies the components (raw materials or semi-finished goods) that
are necessary to produce a material
• Product Routing
• As a list of operations that a company must perform to produce a material
• Work Center
• Is a location where value-added work needed to produce a material is
carried out
• Production Resource Tool
• Are movable resources that are shared among different work centers
Order Completion Confirmation
• User confirm production order operations to deliver feedback to sales
order processing and shop floor planning.
• A confirmation can reduce capacity on the work center, update costs,
and/or automatically trigger the GR of the manufactured goods.
• Completion confirmations clear capacity loads and collect data for production cost
controlling. Confirmed labor can be transferred to mySAP ERP Human Capital
Management.
• Production order confirmations record the following:
• Quantity produced
• Scrap
• Scrap VS Waste (Scrap consists of recyclable materials left over from product manufacturing
and consumption, such as parts of vehicles, building supplies, and surplus materials)
• Unlike waste, scrap can have significant monetary value
• Personnel
• Production times
• Completion dates
• Goods movements
• Amount of activity (i.e. labor hours)
Types of Completion Confirmations
Milestone completion confirmations
• The system confirms all preceding operations, including sub-operations, up to the
previous milestone. mySAP ERP bases confirmations on reported quantities (yield plus
scrap) and standard times.
Standard completion confirmations
• The operations are confirmed using target values.
Normal completion confirmations
• User conduct individual completion confirmations, seeing target values as defaults.
The system allows user to overwrite all input values so user can report variances in the
production process.
Collective completion confirmations
• The system displays a fast entry screen where user can enter multiple operations to
confirm.
Completion confirmations at order header level
• Orders can be confirmed at order header level, which can drive the automatic
backflush of material consumption for all operations, if user so choose.
Goods Receipt
• Goods receipts to stock can be automatically posted when user
confirm the last operation (or any other operation specified) in a
production order. Alternatively, user can report them in a separate
transaction. Or manual *
• User can process goods receipts for partial deliveries from
production by posting them directly to available stock or to quality
inspection stock.
• User can also process goods receipts from co-products and by-
products.
• Co-product: Product manufactured along with a different product, in a
process in which both are required in the production of another product.
• By-product: Output other than the principal product(s) of an industrial
process; have low value in comparison with the principal product(s) and
may be discarded or sold either in their original state, or after further
processing.
Settlement
• Settlement of a production order means:
• The actual costs incurred for the order are settled (posted) to one or more receiver
cost-objects
• Clearing the differences between the actual costs incurred and the credits that the
order received from goods receipts.
• Order settlement demonstrates the close integration between
Production and Management Accounting in mySAP ERP.
• A production order is settled when it is completed or before month-
end closing.
• During settlement, user can post cost variances to one or more cost objects.
• For example, user can post variances due to excessive scrap to a scrap cost
collector, and variances due to poor performance to a productivity problem cost
collector. Alternatively, user can simply post the entire variance to inventory. The
system posts an entry to the G/L price variance account when user work with
standard costing.
• The full power and flexibility of mySAP ERP Financials is available for
analyzing production costs.
Settlement
References
• SAP01 – SAP Overview Participant Handbook, Course Version:
2006 Q2.
Financials
Overview
• Provide an overview of the two key functional areas within mySAP
ERP Financials solution: Financial Accounting and Management
Accounting.
Objectives
After completing this unit, you’ll be able to:
• Define organizational elements and master data in mySAP ERP
Financials
• Outline the tasks associated within Financial Accounting and
Management Accounting
• Explain how SAP within mySAP ERP Financials supports the key
processes in Financial Accounting and Management Accounting
Contents
• Accounting Foundation
• Financial Accounting
• Management Accounting
SAP R/3 Accounting System
• The accounting system with its various sub-units is a critical part of the
SAP solution. The integration of the various aspects of accounting with
each other and with logistics and human resources applications
becomes a management tool for all company departments.
• These processes have consequences for the organization’s financial position. The role
of accounting processes is to record the financial consequences of the various
process steps. In turn, this financial information used to plan and manage these
processes.
• Besides providing accounting data, the accounting system must
concentrate primarily on processing operational data for strategic
company decisions. Documentation and administration functions are
generally performed automatically and in the background.
• SAP R/3 offers flexible software that can be used in different countries.
• Multilingual approach, flexible currency handling, and country-specific functions for
taxes, reporting, and payment transactions.
• A uniform accounting system that can be consolidated across international borders.
Components of SAP R/3
Accounting System
• The SAP R/3 Accounting System consists of:
• Financial Accounting (FI)
• Corporate Finance Management (CFM)
• Enterprise Controlling (EC)
• Profitability and Sales Accounting
• Product Cost Controlling (CO-PC)
• Overhead Cost Controlling (CO-OM)
• Investment Management (IM)
• Project Management
• Financial Accounting (FI) includes:
• General Ledger Accounting (FI-GL)
• Accounts Payable (FI-AP) and Accounts Receivable (FI-AR)
• Asset Accounting (FI-AA)
• Bank Accounting (FI-BL)
SAP R/3 Accounting System
• Corporate Financial Management (CFM) includes:
• Corporate Finance Management
• Treasury Management
• Enterprise Controlling includes:
• Executive Information System (EC-EIS)
• Profit Center Accounting (EC-PCA)
• Consolidation (EC-CS)
• Business Planning (EC-BP)
• Profitability and Sales Accounting includes:
• Profitability Analysis (CO-PA)
• Product Cost Controlling includes:
• Product Cost Planning (CO-PC-PCP)
• Cost Object Controlling (CO-PC-OBJ)
SAP R/3 Accounting System
• Overhead Cost Controlling includes:
• Cost Center Accounting (CO-OM-CCA)
• Internal orders (CO-OM-OPA)
• Activity-Based Costing (CO-OM-ABC)
• Investment Management (IM) allows company-wide planning of
capital investment programs and control of individual capital
investment measures
• Project Management allows efficient planning, cost-sensitive
control, and target-oriented implementation of projects with
comprehensive integration with Controlling and Logistics

These components provide the basis for performing operational

transactions and meet the requirements of decision-based
reporting for each application area.
Key Processes in FI
• FI-GL is used to record the financial impacts of business process
steps; it contains much of the data needed for financial reporting.
• FI- AR accounting is associated with the fulfillment process and is
used to manage money owed by customers for goods and services
sold to them.
• FI- AP accounting is associated with the procurement process and
is used to to manage money owed to vendors for the purchase of
materials and services.
• FI- AA is used to record data related to the purchase, use, and
disposal of assets such as buildings, equipment, machinery, and
automobiles.
• FI- BL accounting is concerned with recording data associated
with bank transactions.
Balance Sheet or P&L account
type?
• Balance sheet accounts
include assets,
liabilities, and equity
• Profit and loss (P&L)
accounts include
revenue and expenses.
Financial Accounting
Financial Statement
• The financial data recorded in the G/L are used to
generate the financial statements needed for external
reporting.
• Typical financial statements are the balance sheet and
P&L statement.
• Balance sheet is a snapshot of the organization at a point in time.
• Profit and loss statement indicates the changes in a company’s
financial position over a period of time.
Balance Sheet – P&L Statement
Organizational Elements
• Company
• Company code
• Business area
• Functional area
• Controlling Area
• Profit center
Company
• Company: the smallest organizational unit for which individual
financial statements are created according to the relevant legal
requirements.
• A company is generally used in the legal consolidation module to
roll up financial statements of several company codes.
• A company’s financial statements also form the basis of consolidated
financial statements.
• A company can include one or more company codes.
• The definition of the company organizational unit is optional.
• All of the company codes within a company must use the
same chart of accounts and fiscal year. However, each
company code can have a different local currency.
Company Code
• Represents the tax law(national)view of the company
• Fiscal calendar, local currency, and tax reporting requirements determine
the design of the complete and reconciled tracking system
• Can also represent a foreign operation that carries inventory
• Company code: the central organizational unit used for financial
accounting purposes.
• The definition of the company code organizational unit is obligatory
(without which FI cannot be implemented).
• Every legal entity is created as a company code in SAP.
• A company code should be created according to tax law,
commercial law, and other financial accounting criteria
representing a legally independent company.
• A company code also could be used to represent a legally dependent
operating unit abroad, if there are external reporting requirements
including segment reporting, for that unit in the local currency of that
country.
Business Area
• Help depict internal structures for external segment reporting
• User can use the business area to analyze selected balance sheet items and profit and
loss statements for product divisions or regional structures.
• Business area: organizational unit of external accounting that corresponds to a specific
business segment or area of responsibility in a company.
• Financial statements can be created for business areas for internal purposes.
• The definition of the business area organizational unit is optional.
Functional Area
• Functional area: an organizational unit in accounting that
classifies the expenses of an organization by functions, such as:
administration, sales and distribution, marketing, production,
research and development.
• This area displays the profit and loss statement according to
cost-of-sales accounting.
• Through the grouping of functional areas, cost-of-sales
accounting shows what company costs were incurred for, and
displays business expenses for the operation.
• Example: user could determine what amount of labor spent directly on
production as compared to sales and marketing, R&D, etc.
Profit Center
• Profit center can be used to determine the revenues, costs,
and profitability of specific areas of responsibility for
internal purpose.
• The objects of a company’s operating readiness are assigned to
profit centers, include: cost centers, assets, materials, and those
that measure performance (such as production and customer
orders).
• Consequently, areas of responsibility are more detailed than can be
captured by just using the business areas.
• Profit centers can be modeled based on functional divisions,
geographical divisions, product lines, etc.
• Profit Centers are assigned to a single Controlling Area and a
Company Code.
Master Data
• G/L Account
• Vendor
• Customer
• Bank
• Asset (Fixed Asset)
Chart of Accounts
• The chart of accounts (CoA) is a classification system defined by
accounting to record values or value flows.
Sample CoA (Partial Listing)
CoA Functions
1. Operational CoA
• The operational CoA contains the G/L accounts used for posting in company code
during daily activities.
• It allows uniform, company-wide classification
• FI and CO both use this CoA.
2. Country-specific/Local CoA
• The country-specific CoA contains the G/L accounts needed to meet the country's
legal requirements.
• This allows providing statements for the country's legal requirements. The
posting data can be represented based on country specific, predefined
classification criteria
• The assigning of an country-specific CoA to a company code is optional.
• the items in this chart of accounts are derived from the operational chart of
account
CoA Functions
3. Group CoA
• The group CoA contains the G/L accounts that are used by the entire corporate
group.
• This allows the company to provide reports and standardize operations for the
entire corporate group without ignoring external evaluation requirements.
• The assigning of an corporate group CoA to a company code is optional.
• The item in this chart of accounts are derived from the operational chart of
accounts
• Daily document posting are posted from the operational chart of accounting using
account numbers
G/L Accounts
• The accounts in the G/L are defined based on the selected
CoA. The G/L is an instantiation of the CoA for a particular
company and can include some or all of the accounts in the CoA.
Customer Master – A/R
• A customer master record contains all the information that a
company needs for its business relations with a customer.
• This data controls the posting procedure and subsequent
processing, such as payments and dunning.
• Customer master records also provide information on customers
for the accounting and sales departments.
• The customer data records are centrally stored in the system
means that it is always consistent, up-to-date, and free of
redundancy
• The customer master record is characterized by the following
features:
• Provides an overview of all a customer’s data at any time
• Allows flexible access to the data
• Forms the data base that controls automatic dunning and automatic
payment transactions.
Vendor Master – A/P
• The vendor master record contains all the information a
company needs for its business relationships with vendors.
• This data controls the posting transaction as well as the
processing of posting data.
• Both the accounting and purchasing departments use the
master record for this purpose.
• The vendor master's “three-part structure” represented by:
1. General Data: includes address and telecommunications data, general
vendor information (corporate group, industry branch), bank details.
2. Company Code data: includes company-specific policies concerning
payment transactions, dunning procedures, correspondence information,
reconciliation account (payables) that creates a link to the general ledger.
3. Purchasing Organization data: includes inquiry, order, and invoice
verification information.
Customer & Vendor Master
Asset
• Asset class used to
cclassifyfy fixed
assets that possess
similar
characteristics.
• Central default values,
such as classification
criteria, depreciation
keys and useful life,
data on the valuation
of net assets,
insurance-related
data, etc. are stored
with the asset class.
• Example:
• Asset class: Building
• Asset master record:
Building #2
Asset Management
• Asset classes support the structuring and classification of fixed
assets
• When assets are inventoried, this class is simply copied.
• Even if assets are extensive and complex, the system guarantees a
clear and well thought-out classification of the fixed assets.
• Even in the asset class, user can distinguish between essential
asset types such as assets under construction, low value
economic units, leased assets and assets that are to be capitalized
normally
• For the vertical classification of complex economic units, there are
groups assets, asset super-numbers, as well as main asset
numbers and asset sub-numbers.
Asset Accounting
• An asset can be acquired in three ways:.
1. Asset acquisition preceded by a purchase order generated in SAP R/3
purchasing and followed by the receipt of the goods and the invoice
2. Asset acquisition without a purchase order based on a vendor invoice
3. Asset acquisition through in-house production of a capital investment project or
a capital investment order
• The integrated system makes it possible to eliminate the expense that is
generally associated with posting asset acquisitions in asset accounting.
• The capitalization values of the assets are automatically provided by the
integrated applications (A/P, purchasing/inventory management, job
order settlement or project settlement).
• Analogously, for asset retirement, SAP offers close integration with A/R,
which automatically determines the profit or loss generated by the sale,
from sales revenue data. A/R then posts this amount to the profit and loss
statement and to cost accounting, if desired.
Account Balances
Account Balances
• For account information, balance display and line item display are
available. They are separate from each other, but can be used in
connection with each other.
• The balance display is an overview of the saved transaction figures of
an account. User can drilldown from the transaction figure to a
line of the list items that make up the transaction figure.
• A line item display provides an overview of the open, cleared, and
parked items from an account. From this line item list, user can
drilldown from the line item to the document containing this line
item.
• If there are document for this R/3 document, and if it was
archived optically is an origin, user can display it as well.
Account Balances
• Whenever documents are posted to an account, the system
automatically updates the account balance. For G/L Accounts with
line item display, the system also indicates which items from a
document are posted to the account
• User can display the account balance and depending on the account
attribute the line items for each account.
• The account balance offers an overview of transaction figures for
each period by debits and credits.
• Possible differentiating criteria include account number, company
code, fiscal year, business area and currency
• user can also display a graphic representation of account balances.
• User can branch directly to the line items display
• Worklists for several accounts can also be created.
Financial Accounting Process
General Ledger (G/L)
• G/L postings may be the result of:
• Operational transactions if the SAP MM system is active and integrated
• Posting transactions in subsidiary ledgers (asset acquisition) if FI-AA
system is active and integrated
• Transactions originally assigned to G/L if FI-GL system is active
Subsidiary Ledgers and
Reconciliation Accounts
• Some financial data are not directly maintained in the
G/L, but in subsidiary ledgers (subledgers).
• For example:
• Customer accounts, which track the amounts customers owe and the
payments made, are maintained separately for each customer. Although it is
necessary to track sales and payments separately for each customer, it isn’t
necessary to include each customer account in the G/L.
• Similarly, data about each vendor and asset, such as an car, are maintained in
separate accounts. Vendor accounts track purchases from and payments
made to them.
• Such accounts are maintained in sub ledgers.
• Subledgers are completely and comprehensively integrated with
G/L accounting on master data, transaction, and reporting
level.
Subsidiary Ledgers and
Reconciliation Accounts
• Integration of master data comprises the shared chart of
accounts and all account assignment elements of the subsidiary
ledgers including cost accounting.
• Master data parameters can be shared. Data can be mutually
verified for correctness and validity
• The integration of posting data is reflected in
• The central document database as a uniform storage space for transaction
data memory
• The corresponding line items of sub ledger accounting with original
data and account assignment for the central documents
Subsidiary Ledgers and
Reconciliation Accounts
• A shared database means:
• Non-redundant data creation and maintenance
• Documentation and review system that can be clearly verified at any time
• Complete access to all applications
• Reporting and information system that can be fully customized
• Data integration is evident since all document flows for a
business transaction are linked by transferring the predefined
account assignment terms.
• Each business transaction that is automatically updated and
updates all affected operation evaluations
• The automatic transfer of data ensures an up-to-date and
networked accounting and controlling system.
Subsidiary Ledgers and
Reconciliation Accounts
• The data in these subledgers accounts reflected in the
G/L, by posting the data from sub ledger accounts into
special accounts in the G/L called reconciliation
accounts.
• Reconciliation accounts are G/L accounts that consolidate data
from a group of related sub ledger accounts.
• E.g.: the reconciliation account for customers and vendors is A/R and A/P,
respectively.
• It is not possible to post data directly into reconciliation account.
data must be posted to sub ledger accounts, at which point they
are automatically posted to the corresponding reconciliation
account as well.
• The reconciliation account balance is the sum of the postings in
the related sub ledger accounts.
A/R & A/P
Example: A/R Subledger
Accounts Receivable (A/R)
• The FI-AR component is responsible for monitoring and controlling
customer accounts within SAP R/3’s Financial Accounting component.
• Account analyses, alarm reports, due date lists, and a flexible dunning system
all make it easier to keep track of open items.
• Associated correspondence can be adapted to the needs of each firm. This
also applies to payment notices, balance confirmations, and account
statements.
• Incoming payments can be assigned to due receivables using either the
convenient entry functions or automatic data transfer. The payment
program automates the debit memo process as well as payments.
• Interfaces to both Sales & Distribution and Cash Management, as well as
customer-specific perspectives in the financial statements, link the financial
and management accounting aspects of a transaction. Consequently, credit
management, liquidity planning, and contribution margin accounting are
always provided with current and reconciled information.
Accounts Payable (A/P)
• SAP R/3’s FI-AP component manages accounting data for all
vendors. It is also an integral component of the acquisition process.
It serves as an important information source for the purchasing
department regarding delivery, invoicing, and payment values.
• Payments are made so that maximum advantage is taken of available
discounts, using either standard written forms or electronic means
(such as EDIFACT or EDI). The system supports all international
methods of payment.
• To track open items, the system provides account analyses, due date
forecasts, and risk assessments (for example, for foreign currencies).
Balance audit trails, account balances, and journals document
transactions in Accounts Payable.
Accounting Document
• Accounting documents are the result of a posting in FI.
• Two types of documents: original documents and processing
documents
• Examples of original documents: receipts, invoices, checks, bank
statements
• Examples of processing documents: accounting documents, sample
documents, recurring entry documents
• The accounting document represents the original document in the system.
The other processing documents can be used to simplify document entry.
The document remains as a connecting unit in the system until it is archived.
• User can only check whether postings are correct in the compact journal and
general ledger by means of documents. Every posting must therefore have a
document.
Accounting Document
• A document consists of a document header and at least two line
items. The line items contain information about an item. This
includes an amount, an account number, the credit or debit
assignment, and additional details specific to the transaction being
posted.
• Documents are the link between the business transaction and the
posting in accounting. Only complete documents can be posted. A
document is complete when its debit and credit items balance to
zero.
• User must enter the minimum account assignments designated by
the system. For example, document date, posting date, document
type, posting key, account number, and amount. Data must also be
entered in all other fields that were defined as required fields when
making system settings.
Accounting Document - Payment
• When user enter documents, the system checks whether the
minimum account assignments have been made
• If user enter a key that is not defined in the system, the system issues an
error message.
• User have to correct his entry before enter any more documents. These
checks prevent incorrect, inconsistent, or incomplete entries from
being made.
• To be able to post the document, the debits and credits must
balance to zero. This updates the account balances.
• If the debits do not equal the credits, user can hold the document, or
park it until it is complete, without updating G/L account balances.
Travel Management
Travel Management
• Trips cost time and money not only for the person travelling, but for
everyone involved in the planning, approving, verifying, and accounting of
trips.
• Travel management (TM) is expected to support all of the business
processes involved with a business trip in one single procedure. In
addition to travel accounting and the subsequent processes in FI and Payroll
Accounting, this also includes, to a great extent, travel planning.
• SAP R/3 FI-TM are a flexible, high-performance tool to:
• Plan trips
• Book travel services (flights, hotels, rental cars) via a global distribution
system (AMADEUS)
• Approve trips via SAP Business Workflow
• Record trip data
• Determine and valuate reimbursement amounts according to statutory
and enterprise-specific provisions
• Account for travel expenses according to specified statutory provisions
Travel Management
• The data and results produced by FI-TM can be applied in
numerous business processes. User can:
• Use this data to post travel expenses to FI and to clear them in CO
according to the allocation-by-cause principle
• Profit from this data in SAP R/3 Payroll Accounting when calculating the
taxes on travel expenses
• Use trip data reporting results as a basis for negotiating special
conditions with travel service providers
Payment and Transfer to Payroll
Accounting
• Payment of expenses can be accomplished via FI, Payroll Accounting,
or data medium exchange (DME) with credit institutions.
• Whether travel expenses are paid via payroll accounting in company
or not, the results are transferred to payroll accounting if there
are additional amounts for taxation.
• FI-TM then triggers the transfer of travel expense accounting
results.
• The goal of this process is the complete and integrated administration
of travel expenses from travel planning to correct taxation in Payroll
(in HR), correct posting in Financial Accounting (FI), and clearing in
Controlling (CO) or Funds Management (FM).
FI & CO: Standards vs Flexibility
• Financial statements required for external reporting purposes
(e.g., balance sheet and P&L statement) are created in FI.
• These external reporting requirements are typically established by general
accounting standards like GAAP or IAS, as well as by various legal requirements
mandated by regulatory authorities.
• The mySAP Financials application component Controlling (CO)
contains all accounting functions necessary for effective controlling.
• CO represents the internal accounting perspective.
• It provides information for managers those who are inside an organization
and are charged with directing and controlling its operations.
• CO includes cost and revenue accounting.
• Together with the Enterprise Controlling (EC) application components, CO
covers all aspects of managerial accounting.
• CO offers a broad selection of functional tools for providing managerial
accounting information without being limited to legal requirements.
• CO is not governed by formal standards, and therefore can vary by industry or by
individual enterprise.
FI & CO: Standards vs Flexibility
Financial Accounting to
Management Accounting
• Financial Accounting is a primary data source for Management
Accounting. Most expense postings that relate to the G/L result in a
costs posting in Management Accounting.
• These postings to expense accounts in the G/L can be journal
entries, or they can be created by accounts payable postings or
depreciation postings from Asset Accounting or from other
mySAP ERP applications.
• Thus, expenses and revenues postings in Financial Accounting, for
example, result in the costs and sales revenues in Management
Accounting, whereby an appropriate corresponding account
assignment object is provided.
Components of Management
Accounting
• Management Accounting = CO + EC
• CO provide information for management decision-making.
• It facilitates coordination, monitoring, and optimization of all processes in
an organization. This involves recording both the consumption of
production factors and the services provided by an organization.
• As well as documenting actual events, the main task of controlling
is planning. User can determine variances by comparing actual
data with plan data. These variance calculations enable user to
control business flows.
• Income statements, such as contribution margin accounting, are
used to control the cost efficiency of individual areas of an
organization, as well as the entire organization.
Components of Management
Accounting
• mySAP Financials’ Controlling (CO) and Financial Accounting (FI)
are independent components in the SAP system.
• The data flow between the two components takes place on regular basis
• All cost relevant data flows automatically to controlling for financial
accounting.
• At the same time, the system assigns the costs and revenues to different
CO account assignment objects, such as cost centers, business
processes, projects or orders.
• The relevant accounts in financial accounting are managed in controlling
as cost elements or revenue elements
• This enables you to compare and reconcile the values from
controlling and financial accounting.
Components of Management
Accounting
• The components of CO and EC include the following key
capabilities:
• key controlling capabilities
• Cost center accounting
• Internal orders
• Activity-based costing
• Product cost controlling
• Profitability analysis
• Key enterprise controlling capabilities:
• Profit center accounting
• consolidation
Organizational Elements in
Controlling
• CO application carries out cost and revenue element accounting in
a single Controlling Area only
• The controlling area can consist of one or more company codes
that may use different currencies.
• The assignment of multiple company codes to a controlling area
can be used to support centralized cost accounting for an entire
organization.
• All company codes in the same controlling area must use the
same operational chart of accounts and fiscal year.
• All internal allocations refer exclusively to objects in the same
controlling area.
Master Data
• The mySAP Financials Controlling application carries out cost and
revenue element accounting in a single controlling area only, the
primary organizational element of controlling.
• The controlling area forms a framework within which CO
processes costs and revenue element transaction and all CO
documents
• Depending on organizational requirement, the controlling area
can consist of one or more company codes.
• The assignment of multiple company codes to a controlling area
can be used to support centralized cost accounting for an entire
organization
• Cost and revenue element accounting records and groups the
costs incurred during a particular settlement period
Organizational Elements in
Controlling
Components of Management
Accounting
Overhead Cost Controlling
(CO-OM)
• Overhead costs are costs that cannot be directly assigned to
the goods and services of a company but necessary to the
continued functioning of the business (i.e., do not directly
generate profits).
• Overhead costs are all costs on the income statement except for direct
labour, direct materials, and direct expenses.
• E.g., accounting fees, advertising, insurance, interest, legal fees, labor
burden, rent, repairs, supplies, taxes, gas, electricity, telephone bills,
travel expenditures, and utilities.
• Account assignments for overhead costs are, for example, cost
centers and internal orders.
• CO-OM helps plan, allocate, control, and monitor overhead costs.
Cost Center Accounting
(CO-OM-CCA)
• The Cost Center Accounting component determines where costs appear
in the organization.
• Cost centers are organizational subareas that can be treated as independent
account assignment objects in cost accounting. Cost centers represent
areas of responsibility, meaning that a given person manages the costs
within that subarea.
• Each cost center must be assigned to a single controlling area.
• In order to reconcile external and internal accounting, each cost center must be assigned to a
company code.
• For later analysis, the cost centers can also be assigned to a business area and a profit center.
• Cost centers can be combined in cost center groups, which can then be
combined into cost center hierarchies that reflect the decision-making,
responsibility, and control areas in the organization. Individual cost centers
are at the lowest level of the hierarchy.
• The SAP R/3 requires at least one cost center hierarchy per controlling
area, holding all cost centers in the organization; the standard hierarchy.
CO-OM, Cost Centers, and Internal
Orders
Internal Orders (CO-OM-OPA)
• Internal orders are normally used to plan, collect, and settle
the costs of internal jobs and tasks.
• User can assigned budgets for these jobs, which the system monitors, to
ensure that the budgets are not exceeded.
• Internal orders are categorized as either:
• Standard orders used only for monitoring objects in Cost Accounting
(such as, advertising or trade fair orders), or
• Productive orders that are value-added, that is, orders that can be
capitalized (such as in-house construction of an assembly line). These
orders can be used to assist in decision-making, such as to decide
between in-house production and external procurement.
Internal Order Types
• Overhead cost orders are used for the time-restricted
monitoring of overhead costs (that are incurred when execute a
job) or for the long-term monitoring of parts of the overhead
costs.
• Investment orders monitor investment costs that can be
capitalized and settled to fixed assets.
• Accrual orders monitor period-related accrual calculation
between expenses posted in Financial Accounting and the costing-
based costs debited in Cost Accounting.
• Orders with revenues monitor costs and revenues that are
incurred for activities for external partners, or for internal
activities that do not form part of the core business for
organization.
Internal Orders (CO-OM-OPA)
Activity-Based Costing
(CO-OM-ABC)
• Activity-Based Costing within CO-OM provides easy access to
further process-oriented, cross-functional allocation methods
for costs.
• ABC used to monitor costs by business process rather than cost
centers.
• The goal of CO-OM-ABC is to determine the cost of performing
a cross-departmental business process. This process cost can
then be analyzed at the product or customer level by determining
how much of the process was used or consumed by an ABC cost
object, such as a product.
• Costs that were previously hidden in various overhead costs
can now be clearly identified and addressed. Cost Center costs
are allocated to business processes to determine process costs.
Activity-Based Costing
(CO-OM-ABC)
Product Cost Controlling (CO-PC)
• Product Cost Controlling assimilates the costs for the creation
of goods and services (and, in certain cases, their sales revenues)
and settles these in Financial Accounting or in profitability and
sales accounting.
• It enables user to calculate the minimum price at which a product can be
profitably marketed.
• It is used for the calculation and evaluation of the production
costs of a product, and of the costs or revenues from the rendering
of a service or in the execution of a project – in both plan and
actual.
• Tools of CO-PC:
• Product Cost Planning
• Cost Object Controlling
• Actual Costing
• Information Systems
Product Cost Controlling (CO-PC)
Product Cost Controlling (CO-PC)
CO-PC can be used to:
• Plan product costs accurately
• Compare alternative cost estimates to optimize business
decisions
• Monitor product costs in every stage of the manufacturing
process
• Carry out detailed variance analysis on each order, product, and
product group
• Calculate actual costs by period
• Put alternative values on inventory for balance sheet purposes
• Answer recurring questions on the cost of goods manufactured
by plant, product group, product, or order
• Answer one-of questions about the cost of goods manufactured
Profitability Management with
Profitability Analysis
• Profitability Analysis (CO-PA): an external view of profitability
• CO-PA helps monitor and analyze the profit and loss of an
organization by individual market segments and units,
structured according to products, customers, orders, and
summarizations of these and other user-defined characteristics.
• CO-PA provides the option of ascertaining how profitable the
company is in different market segments (product category,
customer, and so on) and how this data has developed over
time.
• CO-PA provides sales, marketing, planning, and management
organizations with decision-support from a market-oriented viewpoint,
e.g., price determination, customer selection, etc.
Profitability Analysis (CO-PA)
Profitability Management with
Profit Center Accounting
• Profit Center Accounting (EC-PCA): an internal view of
profitability
• EC-PCA makes it possible to evaluate the operating profit of
different areas or units within enterprise.
• Profit center is responsible for its own balance of costs and
revenues. This distinguishes it from a cost center, which merely
reflects where capacity costs originate.
• User can structure profit centers according to region (branch
offices, plants), function (production, sales) or product (product
ranges, divisions).
• It is possible to transfer key balance sheet items to EC-PCA, allowing to
analyze additional key figures by profit center (return on investment,
working capital, cash flow).
Profit Center Accounting (EC-PCA)
Cost Element Accounting
(CO-OM-CEL)
• Cost Element Accounting provides information about what type
these costs or revenues are (for example, personnel costs).
• It offers a structure for the assignment of management
accounting data by classifying the transaction items that are
posted to a respective Controlling object (for example, a cost
center or an internal order) depending on the type of cost or
revenue they represent.
Management Accounting Areas
Posting in Controlling
• When an FI document is created that posts to an expense (or
revenue) account for which a corresponding primary cost
element was created in CO, and a valid controlling object (such as
a cost center or internal order) is identified for the
expense/revenue line item, a controlling document is also
created.
• This CO document with its own unique number contains the
following details:
• Controlling object posted to
• The cost element used
• The amount
• The date
• When a primary cost is initially posted into CO, it is treated as
a one-sided journal entry, unlike a traditional balanced financial
accounting journal entry.
Cost Elements
Cost & Revenue Element Accounting
References
• SAP01 – SAP Overview Participant Handbook, Course Version:
2006 Q2.
 Pengantar ERP
Lecture Note Pertemuan ke-7 (Financial Accounting)

Capaian mata kuliah

1. Mahasiswa mampu memahami dan menjelaskan konsep dasar sistem ERP
2. Mahasiswa mampu memahami dan menjelaskan solusi bisnis dalam SAP
3. Mahasiswa mampu memahami dan menjelaskan cara mengoperasikan sistem SAP
4. Mahasiswa mampu memahami dan menjelaskan elemen-elemen dasar yang membangun sistem SAP
5. Mahasiswa mampu memahami dan menjelaskan integrasi proses bisnis di dalam sistem SAP
6. Mahasiswa mampu memahami dan menjelaskan teknologi yang mendasari sistem SAP
7. Mahasiswa mampu memahami dan menjelaskan skenario bisnis yang dapat diaplikasikan dengan
menggunakan sistem SAP

Tim Teaching
1. Handoko, S.Kom., M.MSI.
2. Fandi Halim, S.Kom., M.Sc.
3. Sophya Hadini Marpaung, S.Kom., M.M.S.I.

References
1. SAP AG, SAP01 – SAP Fundamental. SAP AG, 2006.
2. S. R. Magal and J. Word, Integrated Business Processes with ERP Systems. New Jersey, John Wiley & Sons,
Inc., 2012.
3. V. Krisnamoorthy and A. Carvalho, Discover SAP. Boston, Galileo Press, Inc., 2015.

[Sistem Informasi]
 Pengantar ERP
Lecture Note Pertemuan ke-7 (Financial Accounting)

FINANCIAL ACCOUNTING
General Ledger (G/L)
G/L posting merupakan hasil dari transaksi sehari-hari/ operasional, hasil posting
transaksi dalam subsidiary ledger (buku besar pembantu) dalam hal aset, dan transaksi
yang di-assign langsung ke G/L. Berikut ini adalah proses-proses yang terintegrasi dengan
bagian accounting:
• Penjualan (AR)
Goods Issue → Billing → Incoming Payment
• Pembelian (AP)
Goods Receipt → Invoice → Outgoing Payment
• Produksi
• Human Resource
Jadi, semua siklus atau proses bisnis yang dilakukan setiap harinya memiliki hubungan
dengan bagian FI.

Subsidiary Ledgers and Reconciliation Accounts

Beberapa data finansial tidak bisa diatur dalam G/L secara langsung, tetapi
menggunakan subledger (subsidiary ledger), seperti customer account, vendor account.
Akun-akun tersebut diatur dalam subledger yang kemudian dipost ke G/L Account melalui
reconciliation account.
Subledger yang terintegrasi dengan G/L Accounting terdiri dari 3 level:
• Master data level, berkaitan dengan penyimpanan informasi-informasi dalam subledger
• Transaction level, berkaitan dengan transaksi G/L Account
• Reporting level, berkaitan dengan pelaporan yang dihasilkan dari setiap transaksi G/L
Account
Dalam penyusunan subledger dan reconciliation account yang berhubung ke G/L
Account, maka menerapkan shared database, berarti:
• Tidak terdapat redudansi/ penduplikasian data selama pembuatan dan pemeliharaan data
• Mendokumentasikan dan mereview sistem secara real-time
• Akses lengkap ke keseluruhan aplikasi
• Sistem informasi dan pelaporan dapat dikustomisasi secara keseluruhan sesuai kebutuhan
Integrasi data terbukti karena semua aliran dokumen untuk transaksi bisnis ditautkan
dengan mentransfer ketentuan penugasan akun yang telah ditentukan. Setiap transaksi bisnis
yang diperbarui secara otomatis dan memperbarui semua evaluasi operasi yang terpengaruh.
Transfer data secara otomatis memastikan sistem akuntansi dan pengendalian yang
mutakhir.

[Sistem Informasi]
 Pengantar ERP
Lecture Note Pertemuan ke-7 (Financial Accounting)

Data dalam buku besar pembantu ini tercermin dalam General Ledger, dengan
memposting data dari buku besar pembantu ke dalam akun khusus di G/L account yang
disebut akun rekonsiliasi (reconciliation account). Rekonsiliasi akun adalah akun yang
menghubungkan data dari sekelompok akun buku besar pembantu yang terkait, seperti: akun
rekonsiliasi untuk pelanggan dan vendor masing-masing adalah A/R dan A/P. Tidak mungkin
untuk melakukan posting secara langsung ke akun rekonsiliasi. Data harus diposting ke akun
buku besar pembantu, maka akan secara otomatis diposting ke akun rekonsiliasi yang sesuai
juga. Saldo akun rekonsiliasi adalah jumlah posting pada akun buku besar pembantu terkait.

Gambar diatas menunjukkan contoh buku besar piutang dan buku besar pembantu
piutang. Pada buku besar pembantu piutang di bagi menjadi 3 berdasarkan nama pelanggan
yaitu buku besar pembantu piutang untuk pelanggan dengan nama Aaron Co, Branden Inc dan
Caron Co. Setiap terjadi penambahan atau pengurangan piutang selain diupdate pada buku
besar umum juga diupdate pada buku besar pembantu piutang.
• Pada kolom debit pada buku besar umum, dapat dilihat adanya penambahan piutang
sebesar 12.000 dan terjadi update pada buku besar pembantu piutang. Sehingga dapat
dilihat perincian piutang dengan nominal 12.000 adalah penggabungan piutang milik
pelanggan Aaron Co sebesar 6.000, Branden Inc sebesar 3.000 dan Caron Co sebesar 3.000.
• Kemudian pada kolom kredir pada buku besar umum, dapat dilihat adanya pelunasan
piutang sebesar 8.000 dan terjadi update pada buku besar pembantu piutang. Sehingga
dapat dilihat perincian pelunasan piutang dengan nominal 8.000 adalah penggabungan
pelunasan piutang milik pelanggan Aaron Co sebesar 4.000, Branden Inc sebesar 1.000 dan
Caron Co sebesar 3.000.
• Sehingga saldo akhir piutang sebesar 4.000 yang jika dijumlahkan dari masing-masing buku
besar pembantu piutang, maka nominalnya sama yaitu 4.000 (Aaron Co sebesar 2.000 dan
Caron Co sebesar 2.000).

[Sistem Informasi]
 Pengantar ERP
Lecture Note Pertemuan ke-7 (Financial Accounting)

Accounting Document
Accounting document (disingkat Acc. doc) adalah hasil posting transaksi ke Financial
Accounting (FI). Accounting document terdiri dari 2 jenis dokumen, yaitu:
1. Original document
• Dokumen ini didapatkan dari transaksi-transaksi modul lain (seperti: transaksi
pembelian dari modul AP, transaksi penjualan dari modul AR, dan sebagainya).
• Dokumen ini harus bersifat balance terlebih dahulu untuk bisa di-posting ke dokumen
FI.
• Original document ini bisa berupa dokumen yang diperoleh dari bagian internal atau
eksternal perusahaan.
• Original document ini bisa dikatakan sebagai sumber dokumen yang dibutuhkan dan
digunakan kembali untuk menghasilkan processing document.
• Contoh dari dokumen ini adalah:
o Receipts, seperti dokumen Reference Purchase Order dari pihak vendor transaksi
Purchase Order, dokumen penerimaan barang dari transaksi Goods Receipts modul
AP, dan dokumen lainnya yang diperoleh dari/ ke pihak internal/ eksternal
perusahaan.
o Invoices, seperti dokumen Invoice dari pihak vendor transaksi Invoice Verification
modul AP, dokumen billing ke pihak customer transaksi Billing modul AR, dan
dokumen lainnya yang diperoleh dari/ ke pihak internal/ eksternal perusahaan.
o Checks, seperti cek sebagai bukti pembayaran dari pihak eksternal dan dokumen
lainnya.
o Bank statements, seperti bukti transfer antar bank dan dokumen lainnya.
2. Processing document
• Dokumen ini dihasilkan langsung dari pemrosesan transaksi-transaksi di modul FI.
• Semua original document yang diproses lebbih lanjut dan menghasilkan generated
document.
• Contoh dari dokumen ini adalah:
o Accounting documents, seperti accounting document/ FI doc dari transaksi Goods
Issue, Billing, Goods Receipt, Invoice Verification, dan dokumen lainnya.
o Sample documents, seperti dokumen pelaporan yang dapat dikustomisasi, dokumen
promosi, dan dokumen lainnya.
o Recurring entry documents, seperti pembayaran kredit/ cicilan yang bertahap setiap
bulannya sehingga perlu dibuatkan jurnal setiap bulannya.

Setiap posting transaksi harus memiliki suatu dokumen.

[Sistem Informasi]
 Pengantar ERP
Lecture Note Pertemuan ke-7 (Financial Accounting)

Financial accounting document (atau disebut accounting document) mencatat dampak

data keuangan dari suatu transaksi. Accounting document terdiri dari:
1. Header
Pada segmen header mencakup data yang berlaku untuk seluruh dokumen. Pada segmen
header terdiri dari data:
o Document number, nomor dokumen yang dihasilkan otomatis dari sistem SAP setelah
pengguna menyimpan dokumen.
o Document type, merupakan 2 karakter huruf yang mewakili proses bisnis tertentu yang
menghasilkan dokumen. Document Type menentukan rentang nomor dokumen dan jenis
akun yang terkait dengan posting. Jenis dokumen yang umum digunakan termasuk:
Tipe Dokumen Jenis Dokumen
DR Customer Invoice
DZ Customer Payment
WA Goods Issue
WE Goods Receipt
o Document date, tanggal dokumen.
o Posting date, tanggal posting.
o Company code, kode company code.
o Currency, mata uang yang dipakai.
o Reference number, nomor referensi dari dokumen yang diproses.
2. Line Item
Minimal ada dua line item yang berisi informasi tentang suatu item. Line item yang
pertama berisi informasi pencatatan jurnal disisi Debit. Line item yang kedua berisi
informasi pencatatan jurnal disisi Kredit. Pada segmen line item terdiri dari data:
o Account number, kode akun.
o Description, nama akun.
o Kolom indikator Debit/Kredit, yang dipilih oleh pengguna.
o Amount, nominal dari akun yang di posting.
o Posting Key, merupakan instrumen yang digunakan untuk kontrol internal dan
dimasukkan dalam layar posting kompleks untuk memberi tahu sistem akun apa yang
sedang diposting dan apakah berada pada debit atau kredit. Posting key dilambangkan
dengan 2 digit angka.

[Sistem Informasi]
 Pengantar ERP
Lecture Note Pertemuan ke-7 (Financial Accounting)

Ketika pengguna memasukkan dokumen, sistem memeriksa apakah penetapan akun

(account assignment) minimum telah dibuat. Jika pengguna memasukkan data yang tidak
didefinisikan dalam sistem, sistem mengeluarkan pesan kesalahan. Pengguna harus
memperbaiki entri sebelum memasukkan dokumen lagi. Pemeriksaan ini mencegah entri yang
salah, tidak konsisten, atau tidak lengkap dibuat. Untuk dapat memposting dokumen, saldo
debit dan kredit harus seimbang dan field balance harus nol. Ini memperbarui saldo akun.
Jika saldo debet tidak sama dengan saldo kredit, pengguna dapat menunda posting dokumen
dan menyimpannya sementara (disebut hold).
Jika terdapat nilai debit tidak sama dengan nilai kredit ketika post dokumen, maka
user dapat melakukan hold dokumen (tidak disimpan terlebih dahulu), park dokumen hingga
lengkap dokumennya (disimpan sementara tetapi tidak di-post dokumennya), tanpa meng-
update akun G/L.

Travel Management
Travel Management digunakan untuk keperluan travel bagi karyawan yang bekerja di
luar kota/keluar negeri, seperti perjalanan dinas kerja. Hal ini membutuhkan waktu dan
biaya yang harus dihitung sehingga dibutuhkan proses planning (perencanaan), approving
(persetujuan), verifying (verifikasi), dan accounting (proses pencatatan akuntansi). Travel
management ini berkaitan dengan FI dan proses payroll/ penggajian karyawan.
SAP R/3 FI-TM merupakan tool/ alat yang berkinerja tinggi dan fleksibel yang
digunakan untuk:
• Merencanakan perjalanan/ trip
• Melakukan pemesanan/ booking layanan travel (seperti penerbangan, hotel, mobil sewa)
lewat global distribution system (AMADEUS)
• Menyetujui perjalanan lewat SAP Business Workflow
• Menyimpan data perjalanan/ trip
• Menentukan dan mengevaluasi reimbursement (pengembalian dana untuk biaya karyawan
yang ditanggung sendiri) berkaitan dengan hukum dan visi perusahaan
• Mengalokasikan dana perjalanan dan akan dihitung sebagai beban jika dana tersebut telah
digunakan

[Sistem Informasi]
 Pengantar ERP
Lecture Note Pertemuan ke-7 (Financial Accounting)

Data dan hasil FI-TM dapat diterapkan dalam proses bisnis, dimana user dapat:
• Menggunakan data ini untuk post biaya perjalanan ke FI dan menghubungkannya ke CO
terkait dengan prinsip alokasi dana atau biaya
• Nilai profit/ laba dari data ini dihitung ketika kalkulasi pajak dan biaya perjalanan
dilakukan
• Menggunakan data perjalanan ini untuk melaporkan hasil sebagai dasar negosiasi untuk
kondisi tertentu dengan pihak penyedia layanan perjalanan

[Sistem Informasi]
Financials
Overview
• Provide an overview of the two key functional areas within mySAP
ERP Financials solution: Financial Accounting and Management
Accounting.
Objectives
After completing this unit, you’ll be able to:
• Define organizational elements and master data in mySAP ERP
Financials
• Outline the tasks associated within Financial Accounting and
Management Accounting
• Explain how SAP within mySAP ERP Financials supports the key
processes in Financial Accounting and Management Accounting
Contents
• Accounting Foundation
• Financial Accounting
• Management Accounting
SAP R/3 Accounting System
• The accounting system with its various sub-units is a critical part of the
SAP solution. The integration of the various aspects of accounting with
each other and with logistics and human resources applications
becomes a management tool for all company departments.
• These processes have consequences for the organization’s financial position. The role
of accounting processes is to record the financial consequences of the various
process steps. In turn, this financial information used to plan and manage these
processes.
• Besides providing accounting data, the accounting system must
concentrate primarily on processing operational data for strategic
company decisions. Documentation and administration functions are
generally performed automatically and in the background.
• SAP R/3 offers flexible software that can be used in different countries.
• Multilingual approach, flexible currency handling, and country-specific functions for
taxes, reporting, and payment transactions.
• A uniform accounting system that can be consolidated across international borders.
Components of SAP R/3
Accounting System
• The SAP R/3 Accounting System consists of:
• Financial Accounting (FI)
• Corporate Finance Management (CFM)
• Enterprise Controlling (EC)
• Profitability and Sales Accounting
• Product Cost Controlling (CO-PC)
• Overhead Cost Controlling (CO-OM)
• Investment Management (IM)
• Project Management
• Financial Accounting (FI) includes:
• General Ledger Accounting (FI-GL)
• Accounts Payable (FI-AP) and Accounts Receivable (FI-AR)
• Asset Accounting (FI-AA)
• Bank Accounting (FI-BL)
SAP R/3 Accounting System
• Corporate Financial Management (CFM) includes:
• Corporate Finance Management
• Treasury Management
• Enterprise Controlling includes:
• Executive Information System (EC-EIS)
• Profit Center Accounting (EC-PCA)
• Consolidation (EC-CS)
• Business Planning (EC-BP)
• Profitability and Sales Accounting includes:
• Profitability Analysis (CO-PA)
• Product Cost Controlling includes:
• Product Cost Planning (CO-PC-PCP)
• Cost Object Controlling (CO-PC-OBJ)
SAP R/3 Accounting System
• Overhead Cost Controlling includes:
• Cost Center Accounting (CO-OM-CCA)
• Internal orders (CO-OM-OPA)
• Activity-Based Costing (CO-OM-ABC)
• Investment Management (IM) allows company-wide planning of
capital investment programs and control of individual capital
investment measures
• Project Management allows efficient planning, cost-sensitive
control, and target-oriented implementation of projects with
comprehensive integration with Controlling and Logistics

These components provide the basis for performing operational

transactions and meet the requirements of decision-based
reporting for each application area.
Key Processes in FI
• FI-GL is used to record the financial impacts of business process
steps; it contains much of the data needed for financial reporting.
• FI- AR accounting is associated with the fulfillment process and is
used to manage money owed by customers for goods and services
sold to them.
• FI- AP accounting is associated with the procurement process and
is used to to manage money owed to vendors for the purchase of
materials and services.
• FI- AA is used to record data related to the purchase, use, and
disposal of assets such as buildings, equipment, machinery, and
automobiles.
• FI- BL accounting is concerned with recording data associated
with bank transactions.
Balance Sheet or P&L account
type?
• Balance sheet accounts
include assets,
liabilities, and equity
• Profit and loss (P&L)
accounts include
revenue and expenses.
Financial Accounting
Financial Statement
• The financial data recorded in the G/L are used to
generate the financial statements needed for external
reporting.
• Typical financial statements are the balance sheet and
P&L statement.
• Balance sheet is a snapshot of the organization at a point in time.
• Profit and loss statement indicates the changes in a company’s
financial position over a period of time.
Balance Sheet – P&L Statement
Organizational Elements
• Company
• Company code
• Business area
• Functional area
• Controlling Area
• Profit center
Company
• Company: the smallest organizational unit for which individual
financial statements are created according to the relevant legal
requirements.
• A company is generally used in the legal consolidation module to
roll up financial statements of several company codes.
• A company’s financial statements also form the basis of consolidated
financial statements.
• A company can include one or more company codes.
• The definition of the company organizational unit is optional.
• All of the company codes within a company must use the
same chart of accounts and fiscal year. However, each
company code can have a different local currency.
Company Code
• Represents the tax law(national)view of the company
• Fiscal calendar, local currency, and tax reporting requirements determine
the design of the complete and reconciled tracking system
• Can also represent a foreign operation that carries inventory
• Company code: the central organizational unit used for financial
accounting purposes.
• The definition of the company code organizational unit is obligatory
(without which FI cannot be implemented).
• Every legal entity is created as a company code in SAP.
• A company code should be created according to tax law,
commercial law, and other financial accounting criteria
representing a legally independent company.
• A company code also could be used to represent a legally dependent
operating unit abroad, if there are external reporting requirements
including segment reporting, for that unit in the local currency of that
country.
Business Area
• Help depict internal structures for external segment reporting
• User can use the business area to analyze selected balance sheet items and profit and
loss statements for product divisions or regional structures.
• Business area: organizational unit of external accounting that corresponds to a specific
business segment or area of responsibility in a company.
• Financial statements can be created for business areas for internal purposes.
• The definition of the business area organizational unit is optional.
Functional Area
• Functional area: an organizational unit in accounting that
classifies the expenses of an organization by functions, such as:
administration, sales and distribution, marketing, production,
research and development.
• This area displays the profit and loss statement according to
cost-of-sales accounting.
• Through the grouping of functional areas, cost-of-sales
accounting shows what company costs were incurred for, and
displays business expenses for the operation.
• Example: user could determine what amount of labor spent directly on
production as compared to sales and marketing, R&D, etc.
Profit Center
• Profit center can be used to determine the revenues, costs,
and profitability of specific areas of responsibility for
internal purpose.
• The objects of a company’s operating readiness are assigned to
profit centers, include: cost centers, assets, materials, and those
that measure performance (such as production and customer
orders).
• Consequently, areas of responsibility are more detailed than can be
captured by just using the business areas.
• Profit centers can be modeled based on functional divisions,
geographical divisions, product lines, etc.
• Profit Centers are assigned to a single Controlling Area and a
Company Code.
Master Data
• G/L Account
• Vendor
• Customer
• Bank
• Asset (Fixed Asset)
Chart of Accounts
• The chart of accounts (CoA) is a classification system defined by
accounting to record values or value flows.
Sample CoA (Partial Listing)
CoA Functions
1. Operational CoA
• The operational CoA contains the G/L accounts used for posting in company code
during daily activities.
• It allows uniform, company-wide classification
• FI and CO both use this CoA.
2. Country-specific/Local CoA
• The country-specific CoA contains the G/L accounts needed to meet the country's
legal requirements.
• This allows providing statements for the country's legal requirements. The
posting data can be represented based on country specific, predefined
classification criteria
• The assigning of an country-specific CoA to a company code is optional.
• the items in this chart of accounts are derived from the operational chart of
account
CoA Functions
3. Group CoA
• The group CoA contains the G/L accounts that are used by the entire corporate
group.
• This allows the company to provide reports and standardize operations for the
entire corporate group without ignoring external evaluation requirements.
• The assigning of an corporate group CoA to a company code is optional.
• The item in this chart of accounts are derived from the operational chart of
accounts
• Daily document posting are posted from the operational chart of accounting using
account numbers
G/L Accounts
• The accounts in the G/L are defined based on the selected
CoA. The G/L is an instantiation of the CoA for a particular
company and can include some or all of the accounts in the CoA.
Customer Master – A/R
• A customer master record contains all the information that a
company needs for its business relations with a customer.
• This data controls the posting procedure and subsequent
processing, such as payments and dunning.
• Customer master records also provide information on customers
for the accounting and sales departments.
• The customer data records are centrally stored in the system
means that it is always consistent, up-to-date, and free of
redundancy
• The customer master record is characterized by the following
features:
• Provides an overview of all a customer’s data at any time
• Allows flexible access to the data
• Forms the data base that controls automatic dunning and automatic
payment transactions.
Vendor Master – A/P
• The vendor master record contains all the information a
company needs for its business relationships with vendors.
• This data controls the posting transaction as well as the
processing of posting data.
• Both the accounting and purchasing departments use the
master record for this purpose.
• The vendor master's “three-part structure” represented by:
1. General Data: includes address and telecommunications data, general
vendor information (corporate group, industry branch), bank details.
2. Company Code data: includes company-specific policies concerning
payment transactions, dunning procedures, correspondence information,
reconciliation account (payables) that creates a link to the general ledger.
3. Purchasing Organization data: includes inquiry, order, and invoice
verification information.
Customer & Vendor Master
Asset
• Asset class used to
cclassifyfy fixed
assets that possess
similar
characteristics.
• Central default values,
such as classification
criteria, depreciation
keys and useful life,
data on the valuation
of net assets,
insurance-related
data, etc. are stored
with the asset class.
• Example:
• Asset class: Building
• Asset master record:
Building #2
Asset Management
• Asset classes support the structuring and classification of fixed
assets
• When assets are inventoried, this class is simply copied.
• Even if assets are extensive and complex, the system guarantees a
clear and well thought-out classification of the fixed assets.
• Even in the asset class, user can distinguish between essential
asset types such as assets under construction, low value
economic units, leased assets and assets that are to be capitalized
normally
• For the vertical classification of complex economic units, there are
groups assets, asset super-numbers, as well as main asset
numbers and asset sub-numbers.
Asset Accounting
• An asset can be acquired in three ways:.
1. Asset acquisition preceded by a purchase order generated in SAP R/3
purchasing and followed by the receipt of the goods and the invoice
2. Asset acquisition without a purchase order based on a vendor invoice
3. Asset acquisition through in-house production of a capital investment project or
a capital investment order
• The integrated system makes it possible to eliminate the expense that is
generally associated with posting asset acquisitions in asset accounting.
• The capitalization values of the assets are automatically provided by the
integrated applications (A/P, purchasing/inventory management, job
order settlement or project settlement).
• Analogously, for asset retirement, SAP offers close integration with A/R,
which automatically determines the profit or loss generated by the sale,
from sales revenue data. A/R then posts this amount to the profit and loss
statement and to cost accounting, if desired.
Account Balances
Account Balances
• For account information, balance display and line item display are
available. They are separate from each other, but can be used in
connection with each other.
• The balance display is an overview of the saved transaction figures of
an account. User can drilldown from the transaction figure to a
line of the list items that make up the transaction figure.
• A line item display provides an overview of the open, cleared, and
parked items from an account. From this line item list, user can
drilldown from the line item to the document containing this line
item.
• If there are document for this R/3 document, and if it was
archived optically is an origin, user can display it as well.
Account Balances
• Whenever documents are posted to an account, the system
automatically updates the account balance. For G/L Accounts with
line item display, the system also indicates which items from a
document are posted to the account
• User can display the account balance and depending on the account
attribute the line items for each account.
• The account balance offers an overview of transaction figures for
each period by debits and credits.
• Possible differentiating criteria include account number, company
code, fiscal year, business area and currency
• user can also display a graphic representation of account balances.
• User can branch directly to the line items display
• Worklists for several accounts can also be created.
Financial Accounting Process
General Ledger (G/L)
• G/L postings may be the result of:
• Operational transactions if the SAP MM system is active and integrated
• Posting transactions in subsidiary ledgers (asset acquisition) if FI-AA
system is active and integrated
• Transactions originally assigned to G/L if FI-GL system is active
Subsidiary Ledgers and
Reconciliation Accounts
• Some financial data are not directly maintained in the
G/L, but in subsidiary ledgers (subledgers).
• For example:
• Customer accounts, which track the amounts customers owe and the
payments made, are maintained separately for each customer. Although it is
necessary to track sales and payments separately for each customer, it isn’t
necessary to include each customer account in the G/L.
• Similarly, data about each vendor and asset, such as an car, are maintained in
separate accounts. Vendor accounts track purchases from and payments
made to them.
• Such accounts are maintained in sub ledgers.
• Subledgers are completely and comprehensively integrated with
G/L accounting on master data, transaction, and reporting
level.
Subsidiary Ledgers and
Reconciliation Accounts
• Integration of master data comprises the shared chart of
accounts and all account assignment elements of the subsidiary
ledgers including cost accounting.
• Master data parameters can be shared. Data can be mutually
verified for correctness and validity
• The integration of posting data is reflected in
• The central document database as a uniform storage space for transaction
data memory
• The corresponding line items of sub ledger accounting with original
data and account assignment for the central documents
Subsidiary Ledgers and
Reconciliation Accounts
• A shared database means:
• Non-redundant data creation and maintenance
• Documentation and review system that can be clearly verified at any time
• Complete access to all applications
• Reporting and information system that can be fully customized
• Data integration is evident since all document flows for a
business transaction are linked by transferring the predefined
account assignment terms.
• Each business transaction that is automatically updated and
updates all affected operation evaluations
• The automatic transfer of data ensures an up-to-date and
networked accounting and controlling system.
Subsidiary Ledgers and
Reconciliation Accounts
• The data in these subledgers accounts reflected in the
G/L, by posting the data from sub ledger accounts into
special accounts in the G/L called reconciliation
accounts.
• Reconciliation accounts are G/L accounts that consolidate data
from a group of related sub ledger accounts.
• E.g.: the reconciliation account for customers and vendors is A/R and A/P,
respectively.
• It is not possible to post data directly into reconciliation account.
data must be posted to sub ledger accounts, at which point they
are automatically posted to the corresponding reconciliation
account as well.
• The reconciliation account balance is the sum of the postings in
the related sub ledger accounts.
A/R & A/P
Example: A/R Subledger
Accounts Receivable (A/R)
• The FI-AR component is responsible for monitoring and controlling
customer accounts within SAP R/3’s Financial Accounting component.
• Account analyses, alarm reports, due date lists, and a flexible dunning system
all make it easier to keep track of open items.
• Associated correspondence can be adapted to the needs of each firm. This
also applies to payment notices, balance confirmations, and account
statements.
• Incoming payments can be assigned to due receivables using either the
convenient entry functions or automatic data transfer. The payment
program automates the debit memo process as well as payments.
• Interfaces to both Sales & Distribution and Cash Management, as well as
customer-specific perspectives in the financial statements, link the financial
and management accounting aspects of a transaction. Consequently, credit
management, liquidity planning, and contribution margin accounting are
always provided with current and reconciled information.
Accounts Payable (A/P)
• SAP R/3’s FI-AP component manages accounting data for all
vendors. It is also an integral component of the acquisition process.
It serves as an important information source for the purchasing
department regarding delivery, invoicing, and payment values.
• Payments are made so that maximum advantage is taken of available
discounts, using either standard written forms or electronic means
(such as EDIFACT or EDI). The system supports all international
methods of payment.
• To track open items, the system provides account analyses, due date
forecasts, and risk assessments (for example, for foreign currencies).
Balance audit trails, account balances, and journals document
transactions in Accounts Payable.
Accounting Document
• Accounting documents are the result of a posting in FI.
• Two types of documents: original documents and processing
documents
• Examples of original documents: receipts, invoices, checks, bank
statements
• Examples of processing documents: accounting documents, sample
documents, recurring entry documents
• The accounting document represents the original document in the system.
The other processing documents can be used to simplify document entry.
The document remains as a connecting unit in the system until it is archived.
• User can only check whether postings are correct in the compact journal and
general ledger by means of documents. Every posting must therefore have a
document.
Accounting Document
• A document consists of a document header and at least two line
items. The line items contain information about an item. This
includes an amount, an account number, the credit or debit
assignment, and additional details specific to the transaction being
posted.
• Documents are the link between the business transaction and the
posting in accounting. Only complete documents can be posted. A
document is complete when its debit and credit items balance to
zero.
• User must enter the minimum account assignments designated by
the system. For example, document date, posting date, document
type, posting key, account number, and amount. Data must also be
entered in all other fields that were defined as required fields when
making system settings.
Accounting Document - Payment
• When user enter documents, the system checks whether the
minimum account assignments have been made
• If user enter a key that is not defined in the system, the system issues an
error message.
• User have to correct his entry before enter any more documents. These
checks prevent incorrect, inconsistent, or incomplete entries from
being made.
• To be able to post the document, the debits and credits must
balance to zero. This updates the account balances.
• If the debits do not equal the credits, user can hold the document, or
park it until it is complete, without updating G/L account balances.
Travel Management
Travel Management
• Trips cost time and money not only for the person travelling, but for
everyone involved in the planning, approving, verifying, and accounting of
trips.
• Travel management (TM) is expected to support all of the business
processes involved with a business trip in one single procedure. In
addition to travel accounting and the subsequent processes in FI and Payroll
Accounting, this also includes, to a great extent, travel planning.
• SAP R/3 FI-TM are a flexible, high-performance tool to:
• Plan trips
• Book travel services (flights, hotels, rental cars) via a global distribution
system (AMADEUS)
• Approve trips via SAP Business Workflow
• Record trip data
• Determine and valuate reimbursement amounts according to statutory
and enterprise-specific provisions
• Account for travel expenses according to specified statutory provisions
Travel Management
• The data and results produced by FI-TM can be applied in
numerous business processes. User can:
• Use this data to post travel expenses to FI and to clear them in CO
according to the allocation-by-cause principle
• Profit from this data in SAP R/3 Payroll Accounting when calculating the
taxes on travel expenses
• Use trip data reporting results as a basis for negotiating special
conditions with travel service providers
Payment and Transfer to Payroll
Accounting
• Payment of expenses can be accomplished via FI, Payroll Accounting,
or data medium exchange (DME) with credit institutions.
• Whether travel expenses are paid via payroll accounting in company
or not, the results are transferred to payroll accounting if there
are additional amounts for taxation.
• FI-TM then triggers the transfer of travel expense accounting
results.
• The goal of this process is the complete and integrated administration
of travel expenses from travel planning to correct taxation in Payroll
(in HR), correct posting in Financial Accounting (FI), and clearing in
Controlling (CO) or Funds Management (FM).
FI & CO: Standards vs Flexibility
• Financial statements required for external reporting purposes
(e.g., balance sheet and P&L statement) are created in FI.
• These external reporting requirements are typically established by general
accounting standards like GAAP or IAS, as well as by various legal requirements
mandated by regulatory authorities.
• The mySAP Financials application component Controlling (CO)
contains all accounting functions necessary for effective controlling.
• CO represents the internal accounting perspective.
• It provides information for managers those who are inside an organization
and are charged with directing and controlling its operations.
• CO includes cost and revenue accounting.
• Together with the Enterprise Controlling (EC) application components, CO
covers all aspects of managerial accounting.
• CO offers a broad selection of functional tools for providing managerial
accounting information without being limited to legal requirements.
• CO is not governed by formal standards, and therefore can vary by industry or by
individual enterprise.
FI & CO: Standards vs Flexibility
Financial Accounting to
Management Accounting
• Financial Accounting is a primary data source for Management
Accounting. Most expense postings that relate to the G/L result in a
costs posting in Management Accounting.
• These postings to expense accounts in the G/L can be journal
entries, or they can be created by accounts payable postings or
depreciation postings from Asset Accounting or from other
mySAP ERP applications.
• Thus, expenses and revenues postings in Financial Accounting, for
example, result in the costs and sales revenues in Management
Accounting, whereby an appropriate corresponding account
assignment object is provided.
Components of Management
Accounting
• Management Accounting = CO + EC
• CO provide information for management decision-making.
• It facilitates coordination, monitoring, and optimization of all processes in
an organization. This involves recording both the consumption of
production factors and the services provided by an organization.
• As well as documenting actual events, the main task of controlling
is planning. User can determine variances by comparing actual
data with plan data. These variance calculations enable user to
control business flows.
• Income statements, such as contribution margin accounting, are
used to control the cost efficiency of individual areas of an
organization, as well as the entire organization.
Components of Management
Accounting
• mySAP Financials’ Controlling (CO) and Financial Accounting (FI)
are independent components in the SAP system.
• The data flow between the two components takes place on regular basis
• All cost relevant data flows automatically to controlling for financial
accounting.
• At the same time, the system assigns the costs and revenues to different
CO account assignment objects, such as cost centers, business
processes, projects or orders.
• The relevant accounts in financial accounting are managed in controlling
as cost elements or revenue elements
• This enables you to compare and reconcile the values from
controlling and financial accounting.
Components of Management
Accounting
• The components of CO and EC include the following key
capabilities:
• key controlling capabilities
• Cost center accounting
• Internal orders
• Activity-based costing
• Product cost controlling
• Profitability analysis
• Key enterprise controlling capabilities:
• Profit center accounting
• consolidation
Organizational Elements in
Controlling
• CO application carries out cost and revenue element accounting in
a single Controlling Area only
• The controlling area can consist of one or more company codes
that may use different currencies.
• The assignment of multiple company codes to a controlling area
can be used to support centralized cost accounting for an entire
organization.
• All company codes in the same controlling area must use the
same operational chart of accounts and fiscal year.
• All internal allocations refer exclusively to objects in the same
controlling area.
Master Data
• The mySAP Financials Controlling application carries out cost and
revenue element accounting in a single controlling area only, the
primary organizational element of controlling.
• The controlling area forms a framework within which CO
processes costs and revenue element transaction and all CO
documents
• Depending on organizational requirement, the controlling area
can consist of one or more company codes.
• The assignment of multiple company codes to a controlling area
can be used to support centralized cost accounting for an entire
organization
• Cost and revenue element accounting records and groups the
costs incurred during a particular settlement period
Organizational Elements in
Controlling
Components of Management
Accounting
Overhead Cost Controlling
(CO-OM)
• Overhead costs are costs that cannot be directly assigned to
the goods and services of a company but necessary to the
continued functioning of the business (i.e., do not directly
generate profits).
• Overhead costs are all costs on the income statement except for direct
labour, direct materials, and direct expenses.
• E.g., accounting fees, advertising, insurance, interest, legal fees, labor
burden, rent, repairs, supplies, taxes, gas, electricity, telephone bills,
travel expenditures, and utilities.
• Account assignments for overhead costs are, for example, cost
centers and internal orders.
• CO-OM helps plan, allocate, control, and monitor overhead costs.
Cost Center Accounting
(CO-OM-CCA)
• The Cost Center Accounting component determines where costs appear
in the organization.
• Cost centers are organizational subareas that can be treated as independent
account assignment objects in cost accounting. Cost centers represent
areas of responsibility, meaning that a given person manages the costs
within that subarea.
• Each cost center must be assigned to a single controlling area.
• In order to reconcile external and internal accounting, each cost center must be assigned to a
company code.
• For later analysis, the cost centers can also be assigned to a business area and a profit center.
• Cost centers can be combined in cost center groups, which can then be
combined into cost center hierarchies that reflect the decision-making,
responsibility, and control areas in the organization. Individual cost centers
are at the lowest level of the hierarchy.
• The SAP R/3 requires at least one cost center hierarchy per controlling
area, holding all cost centers in the organization; the standard hierarchy.
CO-OM, Cost Centers, and Internal
Orders
Internal Orders (CO-OM-OPA)
• Internal orders are normally used to plan, collect, and settle
the costs of internal jobs and tasks.
• User can assigned budgets for these jobs, which the system monitors, to
ensure that the budgets are not exceeded.
• Internal orders are categorized as either:
• Standard orders used only for monitoring objects in Cost Accounting
(such as, advertising or trade fair orders), or
• Productive orders that are value-added, that is, orders that can be
capitalized (such as in-house construction of an assembly line). These
orders can be used to assist in decision-making, such as to decide
between in-house production and external procurement.
Internal Order Types
• Overhead cost orders are used for the time-restricted
monitoring of overhead costs (that are incurred when execute a
job) or for the long-term monitoring of parts of the overhead
costs.
• Investment orders monitor investment costs that can be
capitalized and settled to fixed assets.
• Accrual orders monitor period-related accrual calculation
between expenses posted in Financial Accounting and the costing-
based costs debited in Cost Accounting.
• Orders with revenues monitor costs and revenues that are
incurred for activities for external partners, or for internal
activities that do not form part of the core business for
organization.
Internal Orders (CO-OM-OPA)
Activity-Based Costing
(CO-OM-ABC)
• Activity-Based Costing within CO-OM provides easy access to
further process-oriented, cross-functional allocation methods
for costs.
• ABC used to monitor costs by business process rather than cost
centers.
• The goal of CO-OM-ABC is to determine the cost of performing
a cross-departmental business process. This process cost can
then be analyzed at the product or customer level by determining
how much of the process was used or consumed by an ABC cost
object, such as a product.
• Costs that were previously hidden in various overhead costs
can now be clearly identified and addressed. Cost Center costs
are allocated to business processes to determine process costs.
Activity-Based Costing
(CO-OM-ABC)
Product Cost Controlling (CO-PC)
• Product Cost Controlling assimilates the costs for the creation
of goods and services (and, in certain cases, their sales revenues)
and settles these in Financial Accounting or in profitability and
sales accounting.
• It enables user to calculate the minimum price at which a product can be
profitably marketed.
• It is used for the calculation and evaluation of the production
costs of a product, and of the costs or revenues from the rendering
of a service or in the execution of a project – in both plan and
actual.
• Tools of CO-PC:
• Product Cost Planning
• Cost Object Controlling
• Actual Costing
• Information Systems
Product Cost Controlling (CO-PC)
Product Cost Controlling (CO-PC)
CO-PC can be used to:
• Plan product costs accurately
• Compare alternative cost estimates to optimize business
decisions
• Monitor product costs in every stage of the manufacturing
process
• Carry out detailed variance analysis on each order, product, and
product group
• Calculate actual costs by period
• Put alternative values on inventory for balance sheet purposes
• Answer recurring questions on the cost of goods manufactured
by plant, product group, product, or order
• Answer one-of questions about the cost of goods manufactured
Profitability Management with
Profitability Analysis
• Profitability Analysis (CO-PA): an external view of profitability
• CO-PA helps monitor and analyze the profit and loss of an
organization by individual market segments and units,
structured according to products, customers, orders, and
summarizations of these and other user-defined characteristics.
• CO-PA provides the option of ascertaining how profitable the
company is in different market segments (product category,
customer, and so on) and how this data has developed over
time.
• CO-PA provides sales, marketing, planning, and management
organizations with decision-support from a market-oriented viewpoint,
e.g., price determination, customer selection, etc.
Profitability Analysis (CO-PA)
Profitability Management with
Profit Center Accounting
• Profit Center Accounting (EC-PCA): an internal view of
profitability
• EC-PCA makes it possible to evaluate the operating profit of
different areas or units within enterprise.
• Profit center is responsible for its own balance of costs and
revenues. This distinguishes it from a cost center, which merely
reflects where capacity costs originate.
• User can structure profit centers according to region (branch
offices, plants), function (production, sales) or product (product
ranges, divisions).
• It is possible to transfer key balance sheet items to EC-PCA, allowing to
analyze additional key figures by profit center (return on investment,
working capital, cash flow).
Profit Center Accounting (EC-PCA)
Cost Element Accounting
(CO-OM-CEL)
• Cost Element Accounting provides information about what type
these costs or revenues are (for example, personnel costs).
• It offers a structure for the assignment of management
accounting data by classifying the transaction items that are
posted to a respective Controlling object (for example, a cost
center or an internal order) depending on the type of cost or
revenue they represent.
Management Accounting Areas
Posting in Controlling
• When an FI document is created that posts to an expense (or
revenue) account for which a corresponding primary cost
element was created in CO, and a valid controlling object (such as
a cost center or internal order) is identified for the
expense/revenue line item, a controlling document is also
created.
• This CO document with its own unique number contains the
following details:
• Controlling object posted to
• The cost element used
• The amount
• The date
• When a primary cost is initially posted into CO, it is treated as
a one-sided journal entry, unlike a traditional balanced financial
accounting journal entry.
Cost Elements
Cost & Revenue Element Accounting
References
• SAP01 – SAP Overview Participant Handbook, Course Version:
2006 Q2.
Human Capital Management
Overview
• Provide some foundation information about mySAP ERP Human
Capital Management and look and some basic processes.
Objectives
After completing this unit, you’ll be able to:
• Outline the tasks associated within Human Capital Management
• Explain how SAP within mySAP ERP Human Capital Management
supports the key processes in Human Capital Management
Contents
• Human Capital Management foundation
• Human Capital Management processes
Human Capital Management
Overview
• To compete effectively, we need to align all corporate resources –
including employees – with business objectives. We need to
transform traditional human resources (HR) functions into a
comprehensive program for human capital management (HCM).
• mySAP ERP HCM helps maximizing the value of employees and
align employee skills, activities, and incentives with business
objectives and strategies.
• mySAP ERP HCM also provides the tools to manage, measure,
and reward individual and team contributions.
Human Capital Management
Overview
• SAP HCM also consists Talent Management that have following
capabilities: recruitment by e-recruiting, career management,
succession management, visualization of data, enterprise learning
management, employee performance management, compensation
management.
• Career management help managers review employee profiles
and help employees manage their own career paths through self-
service features.
• Succession management ensure that the rights people are
identified and actively developed so that new leadership is always
prepared to step in.
mySAP ERP HCM Elements
mySAP ERP HCM Elements
1. Organizational Management: includes management of the organizational
and personnel structures
2. Applicant Data: gathered during the recruitment process
3. Personnel Management: maintains employee data
4. Personnel Development: includes the development of employee skills
5. Training and Event Management: offers training events to enable
employees to develop their skills and bridge any gaps between position
requirements and their abilities
6. Appraisals: facilitates personnel appraisals
7. Time Management: includes the tracking of employee time (attendances
and absences)
8. Payroll: includes the payment of employees for work done
9. Personnel Cost Planning: facilitates planning activities for budget
generation.
The Organizational Plan
• Organizational Management can be used to quickly and effectively
map organizational and reporting structure with the relevant
organizational objects.
• An organizational plan provides a comprehensive and dynamic
model of the structural and personnel environment of enterprise.
Hierarchies and reporting structures are clearly laid out. The
organizational plan is the foundation of Organizational
Management.
• The organizational plan uses elements, called objects. The most
important objects are organizational units, jobs, and positions.
Key Terms in Organizational
Management
• Organizational units
• Organizational units describe the various business units in organization. Several
organizational units, along with their relationships, make up the organizational
structure.
• Organizational units can be divided according to functional or regional criteria, for
example.
• Jobs
• Jobs are general descriptions of employee’s tasks and requirements. E.g., Manager.
• Positions
• Positions represent the distribution of tasks amongst individual employees in the
organization. Positions are occupied by persons. A position inherits the tasks and
requirements of the job from which it was defined. E.g., Human Capital Manager
• Persons
• Persons occupy positions within the organizational structure and represent the
employees in organization.
Organizational Management
Enterprise Structure for Personnel
Administration
The enterprise structure for personnel administration is
determined by the following elements:
• Client
• Company code
• Personnel area
• The personnel area is used exclusively in personnel administration and
is unique within a client.
• Each personnel area must be assigned to a company code.
• Personnel subarea
• Personnel subareas allow for the further grouping of employees.
• This is typically used in payroll and time management.
Enterprise Structure for Personnel
Administration
Recruitment
• Recruitment component can be used to carry out the entire recruitment
process from entering applicant data to staffing a position.
• This applies both to external applicants, that is, new hires, and to internal employees
changing position.
• The staffing requirements are represented by vacancies (positions that need to be filled).
• If Recruitment integrated with Organizational Management, the vacancies are created or
initiated by an internal transfer in Organizational Management. Vacant positions are the
trigger for the recruitment process.
• mySAP ERP HCM supports representing staffing requirements,
advertising, managing and selecting applicants, and applicant
correspondence.
• When an applicant be hired, the applicant data entered in Recruitment can be
transferred as employee data to Personnel Administration.
• External applicants and internal employees can use the Employment
Opportunities self-service application to apply online and can check the
status of their application using the Application Status service.
• Applicants can also make subsequent changes to their applicant data.
Recruitment
Recruitment
A typical process in Recruitment may involve the following steps:
• The vacant positions are published in job advertisements.
• The applicants’ data is entered in the system (name, address,
qualifications, and so on).
• A complex selection process takes place, culminating in a decision
being made.  profile matchup
• The employment contracts are generated for the applicants who
are to be hired.
• The applicant data is transferred to HCM master data.
Personnel Management
• Integration between Recruitment and Personnel Administration
enables the applicant data to be transferred as employee data.
• Employee data in mySAP ERP HCM are classified depending on
their function and stored as infotype records
• Infotype records equivalent to pages of the personnel file.
• Infotypes have a text description and a four digit unique identifier
• The data can be displayed, copied, corrected, and deleted.
• Tab pages offer an intuitive way of selecting the required
infotypes. HCM administrators can select the infotype they want
to view or edit from the user-specific infotype menu (such as the
Core Employee Info menu).
Infotypes
Infotypes
• The Organizational Assignment records basic information like the
employee’s name, organizational structure, and cost center.
• There is an infotype for recording the employee number.
• Information regarding the employee’s basic salary, bonus, and pay
scale level or grade is stored in the Basic Pay infotype.
• The Planned Working Time infotype records the employee’s
working time details.
• The employee’s place of residence, street, house number, and so on
are stored in the Address infotype.
• The Personal Data infotype contains personal information like
marital status.
Infotypes
• Infotypes can be maintained in various ways:
• Single-screen maintenance (one infotype for one person)
• Personnel actions (sequence of infotypes for one person)
• Fast entry (one infotype for multiple persons)
• One infotype is of central importance for employee data: the
Organizational Assignment infotype. In this infotype, the
employee is assigned to three important structures:
• the enterprise structure,
• the personnel structure,
• and the organizational plan.
Organizational Assignment
Infotype
Personnel Actions
Personnel Actions
• Personnel actions can be used for more complex situations that require
maintaining several infotypes sequentially.
• When carry out a personnel action, the system proposes all relevant infotypes.
• Personnel action help ensure data completeness, however an infotype
presented during an action may be skipped.
• This allows for a scenario where the person entering the data is missing a piece of information.
This person could skip the infotype and continue with the execution of the action. The missing
information can be added at a later time.
• The following is a list of some of the infotypes that are created when hire an
employee. User can change the number and sequence of the infotypes in
the personnel action to suit enterprise's requirements:
• Organizational Assignment 0001
• Personal Data 0002
• Addresses 0006
• Planned Working Time 0007
• Basic Pay 0008
• Bank Details 0009
Personnel Development
• Personnel Development component helps plan and realize
personnel development and further education and training for
employees, that integration with Training and Event Management.
• The comparison of the position requirements profile (the skills
required to perform the tasks of the position) and an employee
qualification profile (the skills the employee holding the position
possesses) results in development requirements for that employee.
• The information required for the comparison is stored in profiles.
• Qualifying actions (such as trainee programs or participation in a
sequence of courses) can be assigned to employees using
development plans.
• Employees' performance and behavior can be appraised, the
results of which provide information for employee development
planning.
Personnel Development
Training & Event Management
• Training and Event Management is a highly integrated component
that supports planning, executing, and managing training
courses and business events.
• There are four main processes in Training and Event
Management:
1. Business event preparation: includes the creation and maintenance of
all required master data when creating the business event catalog, such
as: time schedules, event locations, and resources.
• The business event catalog is represented using a hierarchy that consists of business
event groups (which are used to structure the catalog) and business event types.
Training & Event Management
2. Business event catalog: includes the creation of business events.

3. Day-to-day activities: includes booking participants, pre-booking attendance,

replacing bookings, re-booking, cancelling attendance, and preparing
correspondence.
4. Recurring activities: includes activities required periodically, such as firmly
booking events (confirming the event will run), locking and unlocking events
(controlling enrollment), cancelling, and follow-up activities (course appraisal,
reporting, performing cost re-allocations for internal attendees).
Main Processes in Training & Event
Management
Training and Event Management
• A high level of integration with other SAP components means that
Training and Event Management is an ideal tool for constantly
extending and updating employees' knowledge.
• For example, the link with Personnel Development enables identifying
qualification deficits and react with targeted training programs in Training and
Event Management. The link to the SAP Learning Solution enables combining
traditional classroom training in Training and Event Management with Web-based
learning methods that can be realized regardless of time and location.
• The SAP Learning Solution is a separate SAP software product, and can be
integrated with the Training and Event Management component.
• The broad palette of Training and Event Management functions is
enhanced by a high degree of user-friendliness. To ensure that it is as
intuitive as possible, Training and Event Management uses what are
known as dynamic menus. These menus enable user to access the
individual functions of the application directly via the objects in the
business event catalog. User can right-click to access the most
frequently used functions, such as the day-to-day activities in the
dynamic attendance menu.
Day-to-Day Activities
• In the dynamic attendance menu, user can execute all of the
functions relating to attendance bookings contained in day-to-
day activities.
• Training and Event Management facilitates self-service access to
the most important day-to-day functions of the application. These
services are provided to the user in the form of Employee Self-
Services in the corporate intranet or as Internet Services on the
Internet.
• Correspondence is automatically output to accompany each of
the booking activities if there are relevant settings in Customizing.
The output of correspondence can be monitored using the
Correspondence History function.
Day-to-Day Activities
Time Management
• The Time Management component supports in all processes that concern
planning, recording, and valuating employees' attendance and absence times.
• For example, if Training and Event Management is integrated with Time Management, the booking
of an employee into a course causes a time data record to be created as an attendance. If an
employee who is being booked on a course is absent, due to vacation for example, the system notifies
that the person is not available.
• Evaluating work performed by employees and determining employee
availability within an enterprise are essential elements for a HR system. This
information is also relevant for other areas, such as Controlling and Logistics, and
is a factor that influences enterprise-wide decisions.
• Time Management flexibly display and record working times.
• Information on working times is used to calculate gross wages in Payroll.
• Working times can be used for activity allocation in Controlling. Costs generated by the working
times can be assigned according to their source in Controlling.
• Information from Time Management is used in Logistics to determine employees’ availability for
capacity requirements planning.
• User can determine work requirements for the enterprise and plan employee shifts.
Time Management
• An employee’s time can be recorded in two different ways:
• ‘Exception to work schedule’: only record the deviations from the work
schedule, like absence
• ‘Actual times’: record the employee’s actual working times like
attendance
• There are various options for recording time data (hours worked,
vacation, off-site work or substitutions):
• Online by the time administrator (using the Time Manager's Workplace,
for example)
• Using front-end time recording systems
• Using the Cross-Application Time Sheet (CATS)
• Using Employee Self-Service (ESS) applications
Time Management
Time Management
• Time data is stored in special time infotypes.
• The Planned Working Time infotype is the central time
management infotype.
• It contains the times when the employee is scheduled to work according
to the work schedule assigned.
• The work schedule specifies when employees have to work and when
they are permitted to have breaks.
• The work schedule also covers days off and public holidays.
Appraisals
• The appraisal functionality in Personnel Development supports
flexible appraisal processes to carry out standardized appraisals
with the highest level of objectivity.
• This applies not only to traditional personnel appraisals, also to
business event appraisals or even online employee or customer
surveys using Internet or intranet services.
• The phases of an appraisal can encompass all the usual steps in
the appraisal process, such as planning, review, and execution,
as well as evaluation of the appraisals submitted.
Appraisals
Appraisals
• In the appraisals catalog, reusable appraisal templates can be created, which
are then used to create employee-related appraisal documents.
• In the appraisal documents, objective-setting agreements can be
incorporated as planned specifications. User can add information either
manually or by means of integration with other mySAP components:
• Integration with mySAP ERP HCM Personnel Development enables transferring requirements
profiles from positions or qualifications from the qualifications catalog directly to
employees' individual objective-setting agreements.
• Integration with SAP Strategic Enterprise Management (SAP SEM) enables display the
department goals derived from the higher-level corporate goals in the balanced scorecard
and transfer relevant strategic goals directly to the object-setting agreements for employees.
• Once the appraisal process is complete, user can use integrated, automated follow-on
processes, such as updating the employee's qualification profile in Personnel Development, or
adjusting his or her remuneration.
• Integration with Compensation Management enables automatically adopting default
compensation adjustments.
• Integration with SAP Business Information Warehouse (SAP BW) enables compiling special
analyses of the appraisal results.
Payroll
• Designed for global business, mySAP ERP HCM supports payroll functions
and regulatory requirements.
• Payroll is concerned with calculating each employee's remuneration for
the work that he/she has performed.
• It encompasses a multitude of processes, such as the creation of payroll results and salary
statements, bank transfers, and payment by check.
• The processes include a number of follow-on activities, such as transferring the results to
mySAP ERP Financials.
• The calculation of employees' remuneration includes:
1. Grouping the remuneration elements (the gross amount)
2. Legal and voluntary deductions (country-specific, net amount)
• The payments and deductions were determined for that employee during
one payroll period, and included in the remuneration calculation by means
of various wage types.
• Payment is then made by bank transfer or check, for example, and the
employee is sent notification in the form of the remuneration statement, or
can view the information online using an Employee Self-Service
application.
Payroll
Personnel Cost Planning
• Personnel Cost Planning and simulation can draw from a very wide
data basis and can be integrated with other applications.
• Personnel Cost Planning allows planners within an organization to
determine which cost elements (e.g., salary, overtime, employer cost
of benefits, etc.) should be included in cost planning activities for the
next planning period.
• Once the planning process has been executed, managers can make
additional adjustments to the plan, by using a Web-based front end
as a simple user interface for planning (a phase of the detailed
planning).
• Once a plan has been released, the data can be used for processes
such as:
• Creating salary budgets for Compensation Management
• Creating a training budget for Training and Event Management
• Transferring planning data to Controlling
• Extracting the cost projections for further analysis in the SAP BI
Personnel Cost Planning
Employee Self-Service
• Using Employee Self-Service (ESS), employees maintain their
own personal information and control many administrative
transactions and other processes once handled by the HCM staff.
• ESS streamlines approval processes for activities such as vacation
requests and allows employees to check, for example, their vacation
balance or benefits, thus reducing administrative costs.
• With SAP ESS, employees can take responsibility for updating
their own data. The services can be incorporated in the user-
friendly SAP Enterprise Portal. Employees can enter, display, and
update their own data without being familiar with the HCM
processes in the SAP system. This relieves the HCM department
and time administrators of routine tasks.
Employee Self-Service
Employee Self-Service
• Employees use SAP ESS to complete the following activities:
• Submit travel expenses
• View the calendar
• Search the Who’s Who
• Update personal information
• Enter work times
• Enroll in benefits
• Update banking information
• Enroll in a training course
• Some benefits of SAP ESS include:
• Well-informed employee decisions
• Reduced administrative costs and shorter cycle times
• Accurate employee records
• Time and resources saved for strategic HR initiatives
Manager Self-Service
• Manager Self-Service consists of a set of easy-to-use tools,
transactions, and reporting capabilities. MSS gives managers a
single point of access to information and enables them to
manage information efficiently, effectively, and proactively in one
Web interface. It empowers managers to execute HC and finance
management strategies for budgeting, recruitment, compensation,
and cost management, thus creating return on investment.
• MSS leverages HC and financial back-end systems by making
pertinent information available to managers throughout
enterprise. Self-service tools automate paper-based processes,
such as requests for employee master data changes (for example,
transfers and salary increases) or performance appraisals.
• The MSS solution integrates different systems, and management
information is consistent across the organization.
Manager Self-Service
Manager Self-Service
• SAP MSS can be used to:
• Obtain relevant information
• Recruit employees
• Perform compensation planning
• Control costs
• Perform budget and headcount planning
• Make personnel data changes
• Manage budgets
References
• SAP01 – SAP Overview Participant Handbook, Course Version:
2006 Q2.
 Pengantar ERP
Lecture Note Pertemuan ke-11
(Human Capital Management)

Capaian mata kuliah

1. Mahasiswa mampu memahami dan menjelaskan konsep dasar sistem ERP.
2. Mahasiswa mampu memahami dan menjelaskan solusi bisnis dalam SAP.
3. Mahasiswa mampu memahami dan menjelaskan cara mengoperasikan sistem SAP.
4. Mahasiswa mampu memahami dan menjelaskan elemen-elemen dasar yang membangun
sistem SAP.
5. Mahasiswa mampu memahami dan menjelaskan integrasi proses bisnis di dalam sistem
SAP.
6. Mahasiswa mampu memahami dan menjelaskan teknologi yang mendasari sistem SAP.
7. Mahasiswa mampu memahami dan menjelaskan skenario bisnis yang dapat diaplikasikan
dengan menggunakan sistem SAP.

Tim Teaching
1. Handoko, S.Kom., M.MSI.
2. Fandi Halim, S.Kom., M.Sc.
3. Sophya Hadini Marpaung, S.Kom., M.M.S.I.

References
1. SAP AG, SAP01 – SAP Fundamental. SAP AG, 2006.
2. S. R. Magal and J. Word, Integrated Business Processes with ERP Systems. New Jersey,
John Wiley & Sons, Inc., 2012.
3. V. Krisnamoorthy and A. Carvalho, Discover SAP. Boston, Galileo Press, Inc., 2015.
 Pengantar ERP
Lecture Note Pertemuan ke-11
(Human Capital Management)

HUMAN CAPITAL MANAGEMENT (PART 2)

6.2.2. Personnel Management
Hubungan integrasi antara Recruitment dengan Personnel Administration yang
berkaitan dengan data calon karyawan adalah employee data (data karyawan). Data
karyawan yang disimpan dalam master data HCM sebagai infotype (penyimpanan beberapa
field yang berisi informasi karyawan) yang terhubung ke personnel file.

6.2.2.1. Infotype
Kepanjangan dari Infotype adalah Information type. Data HR disimpan dalam
kelompok yang secara logis dimiliki bersama sesuai dengan konten. Sebagai contoh: tempat
tinggal, jalan, dan nomor rumah merupakan alamat karyawan dan akibatnya disimpan
(bersama dengan data tambahan) di infotype Alamat (address). Infotype memiliki deskripsi
teks dan terdiri dari empat digit angka yang bersifat unik. Contoh infotype Address memiliki
kode 0006. Data-data dalam infotype tersebut dapat ditampilkan, di-copy, diubah, dan
dihapus.

Gambar 1 Infotype
InfoSubtype, atau singkatnya subtype, membagi catatan data suatu infotipe. Pengguna
mungkin ingin membagi informasi tersebut untuk membuatnya lebih mudah untuk dikelola
atau karena pengguna ingin menetapkan fitur kontrol yang berbeda (seperti batasan waktu)
ke berbagai subtipe dari suatu infotipe. Pengguna juga dapat membuat riwayat terpisah
untuk setiap subtipe. Tidak semua infotype memiliki subtype.
Sebagai contoh: dalam infotipe Anggota Keluarga / Tanggungan (Family
Member/Dependents-0021), pengguna memasukkan anggota keluarga yang berbeda dalam
subtipe:
• Pasangan/spouse (subtipe 1)
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Lecture Note Pertemuan ke-11
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• Anak/Child (subtipe 2)

Gambar 2 Subtype of Infotype

Dari gambar tersebut, terdapat beberapa infotype yang disimpan, yaitu:
• Organizational assignment menyimpan informasi dasar, seperti nama karyawan, struktur
organisasi, dan cost center. Hal ini disimpan untuk mengetahui posisi karyawan dalam
perusahaan. Dalam infotype Organizational Assignment, karyawan di-assign yang terdiri
dari 3 struktur penting, yaitu enterprise structure, personnel structure, dan
organizational plan/organizational structure.
• Infotype yang berikutnya adalah employee number/ kode karyawan yang berisi identitas
karyawan tersebut.
• Basic pay berkaitan dengan gaji pokok, bonus, dan pay scale level (tingkat penggajian)
karyawan.
• Planned working time menyimpan informasi yang berkaitan dengan jam kerja karyawan.
• Addresses menyimpan alamat/ tempat tinggal, nama jalan, nomor rumah karyawan, dan
sebagainya.
• Personal data berisi informasi personal, seperti status pernikahan karyawan.
Infotype dapat dikelola dengan 3 cara, yaitu
1. Single-screen maintenance (PA30), hanya mengelola satu infotype untuk satu orang.
2. Personnel actions (PA40), mengelola beberapa infotype secara berurutan untuk satu
orang.
3. Fast entry (PA70), mengelola satu infotype untuk lebih dari satu/ beberapa orang.
 Pengantar ERP
Lecture Note Pertemuan ke-11
(Human Capital Management)

Gambar 3 Human Capital Management Structure

Gambar 4 Ways to Maintain Infotype

6.2.3. Personnel Actions

Personnel Actions digunakan untuk mengelola beberapa infotype secara berurutan.
Personnel action ini dilakukan untuk memastikan kelengkapan data meskipun ada beberapa
infotype yang dapat dilewatkan. Selain itu, user dapat mengubah urutan infotype dalam
personnel action yang disesuaikan dengan kebutuhan perusahaan. Berikut ini adalah
beberapa infotype yang sering digunakan, yaitu:
• Organizational assignment (0001)
• Personal data (0002)
• Addresses (0006)
 Pengantar ERP
Lecture Note Pertemuan ke-11
(Human Capital Management)

• Planned working time (0007)

• Basic pay (0008)
• Bank details (0009)

Gambar 5 Personnel Action

6.2.4. Personnel Development

Personnel Development ini membantu perusahaan untuk merencanakan dan
merealisasikan pengembangan personal/ karyawan. Personnel development ini dapat
dikaitkan dengan pemberian pendidikan dan pelatihan kepada karyawan dalam hal Training
and Event Management. Personnel development ini dilakukan dengan membandingkan
requirement (kebutuhan) perusahaan terhadap skill yang dibutuhkan untuk posisi tertentu
dengan qualification (kualifikasi)/ kemampuan yang dimiliki karyawan untuk menduduki
posisi tertentu (disebut sebagai profile match-up). Informasi dari hasil perbandingan
tersebut disimpan dalam profile. Tindakan membandingkan kualifikasi tersebut
(pelaksanaan training) dapat di-assign ke karyawan menggunakan development plan/
rencana pengembangan. Dari pengembangan tersebut, kinerja dan sikap karyawan dinilai
lebih lanjut.
 Pengantar ERP
Lecture Note Pertemuan ke-11
(Human Capital Management)

Gambar 6 Personnel Development

Gambar 7 Qualification/Requirement
Kualifikasi dinilai melalui skala kecakapan (proficiency scales). Seringkali masuk akal
untuk menggunakan skala yang berbeda untuk kualifikasi yang berbeda. Untuk menilai
kecakapan kualifikasi, pengguna menciptakan skala kualitas. Ini sepenuhnya tergantung pada
pengguna berapa banyak peringkat yang termasuk dalam skala ini, atau apa sebutannya.
Dalam hal skala kualitas, pengguna harus mendefinisikan dan menyebutkan setiap
kemampuan individu.
Contoh: skala untuk mengukur kemahiran dalam bahasa mungkin mencakup kemahiran
Pengetahuan dasar / memuaskan / fasih / penutur asli. Di sisi lain, untuk menunjukkan
bahwa seseorang memiliki lisensi, semua yang diperlukan pengguna adalah skala Ya / Tidak.
 Pengantar ERP
Lecture Note Pertemuan ke-11
(Human Capital Management)

Gambar 8 Assigning Quality Scales

6.2.5. Training and Event Management

Training and Event Management digunakan untuk merencanakan, mengeksekusi, dan
mengelola training course/ jadwal pelatihan dan business events/ acara bisnis lainnya,
seperti seminar, dan sebagainya. Terdapat 4 proses utama dalam Training and Event
Management, yaitu:
1. Business Event Preparation
Proses ini meliputi penyimpanan dan pengelolaan informasi dalam master data yang
dibutuhkan ketika pembuatan business event catalog/katalog acara bisnis yang akan
dilakukan, seperti jadwal (terdiri dari tanggal dan waktu pelaksanaan), lokasi, dan
sumber daya (seperti sumber daya manusia, fasilitas, dan sebagainya). Business event
catalog terdiri dari:
• Business Event Groups
Business event group merupakan pengelompokkan beberapa business event types yang
sejenis.
• Business Event Types.
Business event types merupakan acara/ pelatihan bisnis yang akan dilakukan dalam
perusahaan.
2. Business Event Catalog
Business event catalog merupakan pembuatan business event dan didalamnya terdapat
business event dates/penjadwalan business event.
3. Day-to-Day Activities
Proses ini meliputi mem-booking/memesan partisipan, pre-booking kehadiran partisipan,
penempatan kembali booking, re-booking, membatalkan kehadiran partisipan, dan
mempersiapkan correspondence/ korespondensi.
4. Recurring Activities
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Lecture Note Pertemuan ke-11
(Human Capital Management)

Proses ini meliputi aktivitas yang dilakukan secara periodik, seperti firmly booking event
(konfirmasi mengenai informasi event yang akan dilaksanakan), locking and unlocking
event (untuk proses pengontrolan terhadap event), cancelling (membatalkan event), dan
follow-up activities (aktivitas yang dilakukan setelah event, seperti appraisal/ penilaian
terhadap event tersebut, pelaporan, menjalankan re-alokasi biaya untuk kebutuhan pihak
internal).
Dalam training and event management terdapat dynamic menus dimana menu ini
memungkinkan user untuk mengakses fungsional aplikasi secara langsung melalui objek
dalam business event catalog. User dapat melakukan klik kanan untuk mengakses fungsi yang
sering digunakan, yaitu day-to-day activities dalam dynamic attendance menu. Dalam day-
to-day activites (aktivitas sehari-hari) digunakan correspondence secara otomatis dihasilkan
dari setiap aktivitas booking. Output/ hasil correspondence dapat di-monitoring
menggunakan fungsi Correspondence History.

Gambar 9 Processes in Training and Event Management

Gambar 10 Training and Event Management

 Pengantar ERP
Lecture Note Pertemuan ke-11
(Human Capital Management)

6.2.6. Time Management

Time Management ini digunakan untuk mencatat dan menyimpan jam kerja setiap
karyawan ke sistem, termasuk waktu attendance/ kehadiran dan absence/ ketidakhadiran.
Waktu kerja karyawan dapat dicatat/ disimpan dengan 2 cara, yaitu
• Exception to work schedule, hanya mencatat deviasi/ penyimpanan jam kerja, seperti
absensi karyawan/ jam kerja dimana karyawan tidak masuk kerja.
• Actual times, mencatat jam kerja aktual karyawan seperti waktu kehadiran karyawan.
Terdapat beberapa pilihan untuk menyimpan time data/ data waktu (berapa jam
karyawan bekerja, waktu liburan, saat tidak masuk kerja atau subtitusi/ jam kerja
pengganti), yaitu
• Online yang disimpan secara real-time oleh time administrator (misalnya, menggunakan
Time Manager Workplace)
• Menggunakan front-end time recording system
• Menggunakan Cross-Application Time Sheet (CATS)
• Menggunakan aplikasi Employee Self-Service (ESS)

Gambar 11 Time Management

Dari gambar tersebut, Time Management mencatat jam kerja karyawan dengan
beberapa cara. Setelah jam kerja dicatat, maka Time Management melakukan evaluasi jam
kerja tersebut yang nantinya berpengaruh terhadap penggajian. Setelah itu, Time
Management dapat menggunakan data jam kerja tersebut untuk perencanaan kapasitas,
training and event management, dan pengalokasian biaya terhadap aktivitas bisnis. Time
Management ini diatur dalam Planned Working Time infotype, seperti:
• Waktu/ jam kerja karyawan setiap harinya
• Jadwal kerja karyawan termasuk jadwal masuk kerja dan waktu break/ istirahat
• Waktu kerja yang kosong, seperti saat libur bersama dan waktu libur publik/ nasional
 Pengantar ERP
Lecture Note Pertemuan ke-11
(Human Capital Management)

6.2.7. Appraisals
Proses appraisal/ penilaian ini dilakukan untuk mengidentifikasikan sejauh mana
kemampuan atau kinerja karyawan dalam perusahaan. Fase-fase appraisal ini terdiri dari
perencanaan, me-review dan mengeksekusi, dan mengevaluasi penilaian kinerja karyawan.
Bentuk penilaian kinerja karyawan adalah
1. 360 Appraisal
Penilaian kinerja karyawan antara atasan, bawahan, dan rekan kerja.
2. Course Appraisal
Penilaian kinerja karyawan antara atasan ke bawahan.
3. Personnel Appraisal
Penilaian kinerja karyawan berdasarkan training yang pernah diikuti.
4. Survey
Penilaian kinerja karyawan melalui bentuk survei, seperti kuesioner.

Gambar 12 Appraisals

6.2.8. Payroll
Payroll ini berkaitan dengan perhitungan gaji setiap karyawan terhadap tugas yang
telah dilaksanakan. Hal tersebut meliputi pembuatan hasil pemberian gaji dan remuneration
statement (slip gaji) karyawan, transfer bank, dan pembayaran melalui cek. Proses ini
memiliki beberapa aktivitas follow-on, seperti mentransfer hasil perhitungan gaji ke mySAP
ERP Financial. Kalkulasi gaji karyawan meliputi:
1. Pengelompokkan elemen-elemen gaji (gross amount)
2. Pemotongan gaji yang legal dan sesuai hukum (seperti pajak, dan pemotongan gaji
lainnya)
 Pengantar ERP
Lecture Note Pertemuan ke-11
(Human Capital Management)

Gambar 13 Payroll

6.2.9. Personnel Cost Planning

Personnel cost planning memungkinkan organisasi untuk menentukan elemen-elemen
biaya (Seperti gaji, jam lembur, keuntungan dari perencanaan biaya karyawan terhadap
event tertentu) yang direncanakan untuk periode berikutnya. Setelah perencanaan biaya
personel direalisasikan, maka data dapat digunakan untuk proses sebagai berikut.
• Membuat salary budget/ anggaran gaji untuk Compensation Management.
• Membuat training budget/ anggaran pelatihan untuk Training and Event Management.
• Mentransfer data perencanaan ke Controlling.
• Mengekstraksi adanya proyeksi biaya untuk analisis lebih lanjut dalam SAP BI.

Gambar 14 Personnel Cost Planning

 Pengantar ERP
Lecture Note Pertemuan ke-11
(Human Capital Management)

6.2.10. Employee Self Service

ESS memiliki area-area yaitu:
• Personal Information, mengakses informasi personal dalam database HR
• Travel and Expense, mengatur jadwal perjalanan bisnis dan menyimpan biaya perjalanan
• Benefits, mengakses program yang menguntungkan perusahaan dan menampilkan
keuntungan partisipasi mengikuti event
• Time Management, menyimpan waktu kerja, jam lembur, jam keluar kerja, dan
sebagainya
• Corporate Learning, mengakses jadwal training, mendapatkan persetujuan manajer
• Corporate Information Management, mengakses informasi perusahaan, termasuk aturan
perusahaan
• Life and Work Event Management, meng-update data yang berkaitan dengan life event
changes
• Payment Administration, mengakses hal-hal yang berkaitan dengan gaji dan kompensasi
• Internal Opportunities, me-review keterbukaan pekerjaan yang kosong, submit
application, dan mengecek status perekrutan
• Procurement, mengakses pembelian produk atau layanan atau permintaan maintenance
atau memperbaiki peralatan secara indivual
• Skills and Appraisals, mengakses keahlian yang dimiliki karyawan dan penilaian karyawan
dalam perusahaan
• Training, mengakses business event catalog yang akan dilaksanakan dalam perusahaan.

Gambar 15 Employee Self Service

6.2.11. Manager Self Service

MSS memiliki area-area yaitu:
• Reporting, mengakses hal-hal yang berkaitan dengan pelaporan di level manajemen.
• Recruitment, mengakses dan melakukan monitoring terhadap proses perekrutan
karyawan.
• Compensation, mengatur hal-hal yang berkaitan dengan kompensasi karyawan.
 Pengantar ERP
Lecture Note Pertemuan ke-11
(Human Capital Management)

• Internal Activity Allocation, mengakses dan mengalokasikan aktivitas yang berkaitan

dengan proses bisnis secara internal dalam perusahaan.
• Attendance, mengecek dan mengawasi tingkat kehadiran dan absensi karyawan dalam
perusahaan.
• Employee Review, melakukan review terhadap kinerja karyawan yang berada di bawah
level manajer.
• Assets, mengecek dan melakukan monitoring terhadap aset bisnis perusahaan.

Gambar 16 Manager Self Service

mySAP Technology
Overview
• Provide the concept of the client/server system and the database
of SAP systems.
Objectives
After completing this unit, you’ll be able to:
• Describe the multi-tier client / server concept and how SAP uses it
• List the hardware system configurations
• Define the purpose of a client in terms of master, customizing, and
application data
• Describe the features of a development system, a quality assurance system,
and a production system, as well as how they form the stages for a live-
system rollout
• Describe how business transactions relate to system applications
• Define the requirements for entering text in fields, as well as assigning
attributes
• Describe how tables are used to identify the semantic and technical
characteristics of fields
• View the contents of a table in an SAP database
• Describe how tables are used to generate specific information
Contents
• Client/server architecture
• The database
Client/Server Configuration Views
1. Hardware-oriented views
• Server as central computer within an network that provides
data, memory, and resources for the work stations and the
clients
2. Software-oriented views
• The service provider (software component) can be a work
process or a group of processes.
• The same software component can be client to one work
process and server to another.
Client/Server: HW Oriented View &
SW Oriented View
Single-Level and Multilevel
Configurations
The following processes are required for operating business
application software:
• Presentation processes (eg., displaying screens, GUI)
• Application processes (e.g., executing application programs)
• Database processes (e.g., managing and organizing database
data)
Single-Level and Multilevel
Configurations
• Single-tier configuration
• All tasks are performed by one computer.
• This is classic mainframe processing. Generally used for tests and
demonstrations.
• Two-tier configurations
• Usually implemented using special servers that are responsible solely
for formatting the GUI.
• E.g., many SAP users run SAP GUI processes on Window PCs.
• The database and the application processes run on the same computer.
• The number of users can be increased by maintaining the good performance and
avoiding a substantial increase of costs.
• The load resulting from the presentation processes is distributed to the various
front-end computers and does not influence the performance of the database.
• If the number of users exceeds a certain upper limit, the performance is strongly
affected and additional hardware is necessary, for example, the distribution of
application processes to several hosts.
Single-Level and Multilevel
Configurations
• Three-tier configuration
• Each layer runs on its own host.
• This configuration is easily scalable. To optimize the performance in
this configuration, additional user groups can be used.
• In these groups, only a minimum number of transactions are needed
• For example, a group of buyers and a group of clerks.
• Each group is assigned to a certain server, for example, the server for the
applications necessary for the purchase department, another for the sales
department.
• Within the application layer, the performance is optimized.
Client/Server Basic Principles
Processing of User Requests
• For the processing of a user request, the software view is relevant.
The request is processed on three levels: presentation, application,
and database level.
• The entries made by a user are received by the SAP presentation
program, SAP GUI (SAP Graphical User Interface).
• SAP GUI converts them into an internal format and sends them to
the SAP Web Application Server (WAS) (software-oriented view).
• The central process on a SAP WAS is the dispatcher.
• In association with the operating system, the dispatcher manages
the resources for the application written in ABAP.
• The dispatchers main task includes the distribution of transaction
load across work processes, the connection to the presentation layer,
and the organization of the communication process.
Processing of User Requests
• The processing requests are first saved in request queues and
processed according to a first in-first out principle (FIFO).
• The dispatcher distributed the requests one after the other to the
available work process.
• Data is actually processed in the work process, although the user,
who created the request using the SAP GUI, is not always assigned the
same work process. There is no fixed assignment of work
process to users.
• The work process can also read data from the databank or write
data onto the databank. In this case, the work process is server in
one direction and client in the other.
• Once the process is complete, the result from the work process is sent
via dispatcher back to the. SAP GUI The interface interprets the data
it receives, and with the front-end computers operating system,
creates the output screen for the user.
Software Oriented View
Data Structure of SAP Systems
• SAP systems are characterized by their unique data
structure. Three data components in SAP systems:
1. The client
• The client is a unit within an SAP system, that is self-contained in
terms of business, organization, and data.
• A client is characterized by having its own business data environment,
its own master, and transaction data (e.g., user, material master.).
• This client data is known as client-specific data. Once logged on to
one client the user has no access to any other client-specific data.
Data Structure of SAP Systems
2. Customizing settings
• The customizing include organizational structures, parameters,
and default values for SAP transactions.
• In addition to client-specific settings, there are also Customizing
settings, which need to be set once.
• These cross-client settings include for example, public holiday
calendar, or the system change options.
3. The Repository
• The Repository, the central store for all ABAP Workbench
development objects, is also cross-client.
• It contains all Dictionary objects (tables, data elements, domains,..),
all ABAP programs, menus, and screens.
• Any changes of objects in the repository apply to all clients.
Clients
Landscape: Change Management
• The SAP system software is standard business software that
needs to be adapted to the company specific requirements not
only when it is implemented.
• Upgrades or changes within the enterprise may require the
change of actual customizing setting in a production system.
• The Repository objects are cross-client available. Changing these
objects for testing or quality check bears a high risk of data loss
or inconsistencies.
• To ensure system consistency, SAP recommends a three-system
landscape.
• Each system contains a working client, and others as required, for
example, copies of the working client for training.
• Several SAP systems can be set up on one license, although one of
these may be used as a Production system.
Landscape: Change Management
• A three-system landscape facilitates the following recommended
process:
• Development of customer-specific programs as well as required customizing takes
place in the development system (DEV).
• Developments and changes are transported to the quality assurance system
(QAS) to be checked without influencing the production.
• The tested and approved objects are then transported to the test system, a copy of
the production system. The final transport is into the production system (PROD).
• The Transport Organizer logs changes to Repository objects and
transports if requested. The same approach is used to log and
transport Customizing settings as a Customizing request.
• Changes to the SAP objects such as tables and table definitions are
called Modifications. In case of an upgrade of the SAP System,
Modifications need to be checked against the new upgraded
repository. This time consuming process can be speeded up by using
the Modification Assistant.
Change Management
The Transaction
• Transactions are processing units grouped to provide specific
functions.
• They have four principal characters, called the ACID concept:
• Atomic = The transaction is either completely successful or remains
without effect.
• Consistent = The system status changes from one that is accurate and
consistent in business terms to another that is also accurate and
consistent in business terms.
• Isolated = Changes made within a transaction can only be seen by
another transaction after the transaction is finished: after the final
confirmation (commit).
• Durable = The results of a transaction are durable. they are permanently
saved in the databank. Changing or erasing the data involves another
transaction.
Transaction Example: VA01
ABAP Dictionary
• The ABAP (Advanced Business Application Programming
Language) Dictionary contains the field definitions that are
defined in the standard SAP system.
• While online, the system uses the definition of the table fields in
the ABAP Dictionary to check the format of the user’s field
entries. The check on application level guarantees data
consistency before the data is transferred to the database. All
data and programs in the SAP system are stored in the database.
ABAP Dictionary
Field Definitions in the ABAP
Dictionary
• The field is the smallest unit for representing business-related
information.
• The required definitions for fields include, number of characters possible (length
of the field), and type of characters (numeric, alphanumeric).
• In addition to basic field attributes, number intervals can also be defined for
particular fields.
• Field definitions are set in the ABAP Dictionary in the ABAP
Workbench.
• For example, the client field is restricted to three numerical characters.
• The basic objects for defining data in the ABAP Dictionary are tables,
data elements, and domains.
• A data element is used for the semantic definition (field label) of a table field.
• A domain is used for the technical definition (field type, length) of a table field.
• A field is not an independent object but depends on tables. Fields can only be
maintained within a table.
Field Definitions in the ABAP
Dictionary
SAP Business Objects
• An SAP Business Object is the representation of a central
business object in the real world, such as an employee, sales
order, purchase requisition, purchase order, applicant, invoice, and
so on.
• A business object is composed of tables related in a business
context including the related application programs.
• The application programs are called methods of the business
object.
• Attributes and methods are assigned to a business object.
Attributes are characteristics that specify the business object. The
attributes can be modified by the methods that belong to the
business object
• Business objects are maintained by SAP in the Business Object
Repository (BOR).
SAP Business Objects
Generating Information in the
Business Framework
• Business Objects make it possible for applications to share
information both internally and externally.
• Business Application Programming Interface (BAPI) enables
integrating external software into a SAP system or between
SAP systems. BAPIs are defined in the Business Object
Repository (BOR) as methods applied to SAP business objects in
order to perform specific business tasks.
• BAPIs are implemented and stored in the SAP system as RFC-
enabled function modules in the Function Builder of the ABAP
Workbench.
• Remote Function Call (RFC) is the standard SAP interface for
communication between SAP systems and external
application that have connection in ABAP function.
Generating Information in the
Business Framework
SAP Business Framework
• SAP created the Business Framework to allow the
technical integration and exchange of business data
among SAP components and between SAP and non-SAP
components.
• The basic components of the Business Framework
include:
• Business components
• SAP business components provide autonomous business functions
and consist of business objects.
• For example, the business object types Employee and Applicant are
assigned to business component Human Resources. Business
processes are either implemented within a business component or
across several components (distributed business processes).
• Business object types
• The object-oriented structure of the SAP system is based on
business object types. A single business object type represents one
business fact. It encompasses the functions and the data of this fact.
SAP Business Framework
• BAPIs (The Business Application Programming Interfaces)
• BAPIs allow object-oriented access to the SAP system through
methods for the business object types. Together with the business
object types, BAPIs define and document the interface standard at
the business level.
• Application Link Enabling (ALE)
• The ALE integration service enables the technical integration of
business processes that are carried out in different SAP and non-SAP
systems. ALE integration service involves distributing business
object types across the systems using the ALE distribution model.
• Integration scenarios
• Integration scenarios describe how components, business object
types, and BAPIs interact and integrate the systems by
synchronizing business processes at a semantic level.
SAP Business Framework
References
• SAP01 – SAP Overview Participant Handbook, Course Version:
2006 Q2.