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Module1 ERP & SAP Introduction

ERP & SAP Introduction

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sarkar.parthasarathi
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57 views13 pages

Module1 ERP & SAP Introduction

ERP & SAP Introduction

Uploaded by

sarkar.parthasarathi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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ERP & SAP

Introduction
Module 1
SAP SE is a software corporation that provides
enterprise software applications and support to
businesses of all sizes globally. Headquartered in
Walldorf, Germany, with subsidiaries around the
world, SAP is the largest enterprise software
company in the world (as of 2016). It is also the
largest software company in Europe and the
fourth largest globally, with more than 100,000
customers.

1979 – SAP invents ERP. SAP builds standard


business software based on mainframe
technology. The name, SAP R/2, supports and
integrates major business functions in real time
and handles multi-country and multi-currency
implementations. (R means real time, and
although there was an R/1, this is not regarded as
the first major release.)
1992 – With the rise of the personal computer, the introduction of
client/server architecture means another rewrite of the applications to
exploit the power of a layered, three-tier architecture approach, in which
processing is split across three layers: client, application, and database.
This is the birth of SAP R/3.

2004 – Now the Web is firmly established as the common business


network and customers demand better integration between their business
applications and the Web. SAP develops a new integration application
platform called SAP NetWeaver in order to enable this. The SAP R/3
name is now replaced by SAP ERP. ERP is part of a larger family known
as SAP Business Suite, which also contains many other line of business
(LOB) applications from SAP, such as SAP CRM.

2015 – A new wave of advances in hardware architecture brings massive


computing power at decreasing costs. Huge memory and multi-core
processors arrive to offer massive computing power. The underlying
design of existing SAP applications was not fully exploiting the power
of the new hardware. A rewrite of the complete Business Suite is
required. The new business suite is called SAP S/4HANA.
SAP S/4HANA is not a single product, but covers many applications. Customers can start with the basic components and add
others later. SAP S/4HANA Enterprise Management is a great place to start. This is known as the “simplified core”. It is
helpful to think of SAP S/ 4HANA Enterprise Management as the replacement for SAP ERP. It offers support for all core
business processes, such as quotation to cash, procure to pay, and so on. For many customers, this is where their SAP
S/4HANA adoption begins.
SAP provides a fully integrated platform, based on the latest technology trends, to allow finance to lead the transformation to
digital business. SAP S/4HANA Finance gives you the ability to centrally track financial accounting data within an
international framework of multiple companies, languages, currencies, and charts of accounts.
For example, when raw materials move from inventory into manufacturing, the system reduces the quantity in inventory and
simultaneously subtracts values for inventory accounts in the balance sheet. The Financial Accounting function complies with
international accounting standards, such as United States Generally Accepted Account Principles (USGAAP) and
International Financial Reporting Standards (IFRS). It also fulfills local legal requirements of many countries and fully
reflects the legal and accounting changes resulting from European market and currency unification.

Key features and functions of Financial Accounting in SAP S/4HANA Finances:


● General Ledger Accounting ● Accounts Receivable or Accounts Payable
● Fixed Assets ● Banks ● Fast-Close Functions ● Financial Statements ● Parallel Valuation
Management Accounting in SAP S/4HANA Finance Management Accounting (Controlling) enables the valuation and
recording of financial data, not only for financial reporting, but also as the basis for all cost and revenue-related reporting. As
a result, analysts and managers can work with the same basic data as the company’s financial accountants. Because financial
data is tightly integrated with the business processes of the logistic processes of SAP S/4HANA and human resources
applications, users can also easily obtain detailed information about cost structures and profit margins. Easy access to this
data helps support and enable management to achieve business goals, such as increasing revenue, maximizing customer
profitability, and reducing operating costs while increasing efficiency, reducing the cost of goods sold, and improving the
visibility of inventory.

Key features and functions of Management Accounting in SAP S/4HANA Finance:


● Cost Element Accounting ● Cost Center Accounting ● Internal Orders ● Product Cost Controlling ● Profitability Analysis
● Revenue and Cost Planning ● Budgeting
SAP Vs Other ERP Packages : Advantages

 SAP's functionalities are very innovative and well-developed which makes it easier to customize

 SAP's solutions allow for customizations to suit different types of businesses

 Excels in data exploration, collaboration, and integration capabilities while providing a user-friendly interface
SAP – ASAP Methodology

 ASAP stands for Accelerated SAP


 Its purpose is to help design SAP implementation in the most efficient manner possible
 Its goal is to effectively optimize time, people, quality and other resources, using a proven methodology to
implementation.

 Phase 1 Project Preparation


 Phase 2 Business Blueprint
 Phase 3 Realization
 Phase 4 Final Preparation
 Phase 5 Go-Live and support

 Phase 1
 Obtaining senior-level management/stakeholder support
 Identifying clear project objectives
 Architect an efficient decision-making process
 Creating an environment suitable for change and re-engineering
 Building a qualified and capable project team.

 Phase 2 - Extract pertinent information about your company that is necessary for implementation. These blueprints are in
the form of questionnaires that are designed to probe for information that uncovers how your company does business.
As such, they also serve to document the implementation.
SAP – ASAP Methodology

 Phase 3
 Your SAP consulting team helps you configure your baseline system, called the baseline configuration.
 Your implementation project team fine-tunes that system to meet all your business and process requirements as
part of the fine tuning configuration.

 Phase 4 - Fine tuning of your configuration before Go-live and more importantly, the migration of data from your old
system or systems to SAP

 Phase 5 - The Go-live milestone is itself is easy to achieve; a smooth and uneventful Go-live is another matter altogether.
Preparation is the key, including attention to what-if scenarios related not only to the individual business processes
deployed but also to the functioning of technology underpinning these business processes and preparation for ongoing
support, including maintenance contracts and documented processes and procedures are essential.
SAP Vs Other ERP Packages : Advantages

 SAP's functionalities are very innovative and well-developed which makes it easier to customize

 SAP's solutions allow for customizations to suit different types of businesses

 Excels in data exploration, collaboration, and integration capabilities while providing a user-friendly interface

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