01 SAP Overview

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© Copyright IBM Corporation 2003

ERP / SAP Overview

ERP / SAP Overview | September 2003 Slide 2

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Enterprise Resource Planning

ERP Overview


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Enterprise Resource Planning... ... synchronization of Company functions...synchronization of Company functions...

Manufacturing

Purchase

Sales

Finance


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Enterprise Resource Planning… … and extended to the complete value chain...and extended to the complete value chain...

Tier II ComponentSupplier

Vehicle OEM

Tier I Component Manufacturer


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Enterprise Resource Planning

Administrative registration

Processes monitoring & feedback

Decision support and analysis

... delivering administrative and decision support with...... delivering administrative and decision support with...


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What is an ERP solution...?

……. Integrated across the primary and support . Integrated across the primary and support processesprocesses

MarketingMarketingManufacturiManufacturingng

MaterialsMaterials

DistributioDistributionn

FinancFinancee

EngineeringEngineering SalesSales

Human ResourcesHuman Resources

Planning Planning and and

ExecutioExecutionn


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The ERP application

An integrated suite of business applications, which..- Closely links, monitors, and controls primary enterprise resources like manpower,

machine, material, methods, market and money- Enables corporates to readily change their processes to adapt to the ever changing

business scenario - Provides expertise in industry specific business processes

Entails- Parameterization / Configuration- Designing & Customization- Testing and Implementation- Training


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Why clients buy ERP?

Corporate Initiatives- Strategic initiatives

A requisite capability in a competitive global business

- Operational initiative A foundation for performance and cost improvement

via integration

- Organizational initiative To initiate a major organizational change within the company

Technology - IT is making the transition from a supporting operational entity to becoming a strategic

competitive tool.

BECAUSE OTHERS ARE BUYING IT!!!


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Recent business trends favoring ERP growth

Business Process Reengineering ( BPR ) Most large companies are attempting to cut in-house development costs, improve

customer service, and speed products to market by reorganizing their existing business processes

Software Pricing Licensing and pricing of mainframe based packaged applications are tied to the size of

mainframe system on which the applications run, but now customers are now demanding user-based licensing options and major corporate applications like SAP provide this instead of the conventional platform-based pricing technique


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Recent business trends favoring ERP growth

Globalization As businesses are becoming more global in scope, people are demanding packaged

corporate applications that are available in a variety of languages with support for multiple currencies

Integration As more and more companies are going for BPR, there is increase in demand for

integrated solution e.g.. different applications sharing a common database and thus enabling data definitions and business rules to be applied across an entire organization with the facility of doing modifications at one location only


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Business process benefits clients expect from an ERP project

Global process/ Product management Integrated Supply Chain Management Leverage purchasing and vendor management Order cycle time/ customer service improvement Inventory reductions Reduced information systems costs on an ongoing basis Improved business management through worldwide integration and information

Logistics and Distribution Sales & Customer Service

Vendors Inbound Manufacturing Transportation Distribution Delivery Customer Consumer Logistics


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Major ERP vendors

SAP R/3

Peoplesoft

Oracle

Baan

JD Edwards


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What results can be expected from an “ERP culture”?

Reduced working capital requirements Improved customer service Improved direct labour productivityReduced purchase costsReduced obsolescenceReduced overtimeHaving the figures to make decisionsHaving accountability throughout the

organization Improved quality of life

ERPERP


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SAP R/3 Overview

Systems Applications & Products in Data Processing


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SAP AG – At a Glance

Founded in Germany in 1972

Market Leader in Industrial Enterprise Application (IEA)About 56% market share in the ERP market

Worldwide presence in over 50 countries 18,000+ employeesTrained consultants doubled since 1996 (40,000)

About 20,000 companies in 120 countriesAround 64,500 installations of SAP

Strength lies in its high degree of integration, mainly for large, global corporate enterprises– Significant presence in Global Fortune 500 companies


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SAP R/1 , R/2• The R/1 system

– Developed for ICI Chemical– Released 1972– Focused on Sales & Distribution and Materials Management– Discontinued after release of R/2

R/2Basis System

• The R/2 system– Reorganized as leading mainframe software for large multinational

corporations– No sales effort planned – reactive only– 4,300 copies worldwide in 1993– Mainframe-based to replace user legacy software;

co-existence and migration strategy underway for R/2 and R/3


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SAP R/3 : A comprehensive business solution

Sales &Sales &DistributionDistribution

SDSD

MMMM

PPPP

QMQM

PMPM

HRHR

FIFI

COCO

TRTR

PSPS

WFWF

ISIS

MaterialsMaterialsMgmt.Mgmt.

ProductProductPlanningPlanning

QualityQualityMgmt.Mgmt.

Plant Mainte-Plant Mainte-nancenance

HumanHumanResourcesResources

FinancialFinancialAccountingAccounting

ControllingControlling

TreasuryTreasury

ProjectProjectSystemSystem

WorkflowWorkflow

IndustryIndustrySolutionsSolutions

R/3R/3R/3R/3Client/ServerClient/Server

ABAP/4ABAP/4Client/ServerClient/Server

ABAP/4ABAP/4


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SAP R/3 : 3 Tier Architecture

Those SAP R/3 software components that specialize in the management , storage and retrieval of data form the Database Layer

The Database Layer

Those SAP R/3 software components that specialize in processing business applications form the Application Layer.

The Application Layer

Those SAP R/3 software components that specialize in interacting with end-users form the Presentation Layer.

The Presentation Layer


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Database servers:Specialized systems with fast and large hard drives.

Application servers:Specialized systemsmultiple CPUs andvast amounts of RAM.

Presentation servers:Systems capable ofproviding a graphicalinterface.

Presentation Layer components

Application Layer components

Database Layer components

reside in: reside in: reside in:


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The Database Layercomponents are installed on

high-end database server.

The Application Layercomponents are installedacross one or more high-end servers.

Presentation Layer components are installed across many PCs.


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SAP R/3 Overview


SDSD

MMMM

PPPP

QMQM

PMPM

HRHR

FIFI

COCO

TRTR

PSPS

WFWF

ISIS








TreasuryTreasury


WorkflowWorkflow


R/3R/3R/3R/3Client/ServerClient/Server

ABAP/4ABAP/4Client/ServerClient/Server

ABAP/4ABAP/4


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Integration

S

U

P

P

L

I

E

R

C

U

S

T

O

M

E

R

S A P R / 3S A P R / 3

Procurement Production Distribution

Finance and Accounting

MMMM PPPP SDSD

FIFI COCO

All business processes throughout the supply chain are All business processes throughout the supply chain are executed in one system sharing all informationexecuted in one system sharing all information

Workflow


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SD: Sales and Distribution

SAPR/3

SDSDSDSDSD Sales & Distribution . . . . . . . . Sales & Distribution . . . . . . . .


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SD Overview SDSDInquiry

Quotation

Goods Issue

Sales Order

Delivery to Customer

Invoicing

Pricing

Materials Planning

Purchasing

Production

Goods Receipt

Customer Stock

Picking

Packing

Transportation


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Process Chain: Sales Distribution

- Create pick list- Create trans-

portation work list- Create loading work list

- Check credit

- Check product availability- Determine pricing- Estimate delivery schedule- Determine conditions of sale

Inbound LogisticsInbound Logisticsfrom Materialsfrom MaterialsManagementManagement

Inbound LogisticsInbound Logisticsfrom Materialsfrom MaterialsManagementManagement

Outbound LogisticsOutbound Logisticsto Customerto Customer

Outbound LogisticsOutbound Logisticsto Customerto CustomerSales Order & Distribution

Process

Support Customer SalesSupport Customer Sales(Customer Info Analysis)(Customer Info Analysis)

- Optional -- Optional -

Support Customer SalesSupport Customer Sales(Customer Info Analysis)(Customer Info Analysis)


Process CustomerProcess CustomerInquiresInquires


Process CustomerProcess CustomerInquiresInquires


Provide CustomerProvide CustomerQuotationsQuotations- Optional -- Optional -

Provide CustomerProvide CustomerQuotationsQuotations- Optional -- Optional -

Support CustomerSupport CustomerAgreementsAgreements- Optional -- Optional -

Support CustomerSupport CustomerAgreementsAgreements- Optional -- Optional -

Receive PaymentReceive PaymentReceive PaymentReceive PaymentFI

Create InvoiceCreate InvoiceCreate InvoiceCreate InvoiceFI/CO/PA

Issue GoodsIssue Goods(Ship Product)(Ship Product)Issue GoodsIssue Goods

(Ship Product)(Ship Product)FI

MMMM

Create Delivery NoteCreate Delivery NoteCreate Delivery NoteCreate Delivery Note

Create Sales OrderCreate Sales OrderCreate Sales OrderCreate Sales OrderFI/CO/PA

MMMM

PPPP

(Activities)

(Documents)

Sales/DistributionSales/DistributionChainChain

Sales/DistributionSales/DistributionChainChain


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Order Entry

PPMMFIFI FIFI

Credit ManagementCredit Management

Dynamic Availability Check

Cash ForecastCash Forecast

?? ?OK


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Delivery/Shipment Processing

MMWM

MM

PickingPicking

PackingPacking

TransportationTransportation

Ship to party: C100

Item Material Qty

.

.

.

. DeliveryNote

10 6301 1020 6412 1030 1507 25

PickingList

Credit ManagementCredit Management

Static Availability Check

FIFI


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Picking/Packing

Picking RequestPicking Request

Picking Confirmation

Picking Confirmation

Confirm Picking Request

Confirm Picking Request

Goods IssueGoods Issue

DeliveryDelivery

Sales OrderSales Order

Print Picking ListPrint Picking List

Picking with Picking Confirmation

Picking without Picking Confirmation


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Invoicing

FIFICOCO

PCAPCA

Single InvoicesSingle Invoices

Collective InvoicesCollective Invoices

Invoice ListsInvoice Lists

Credit/Debit NotesCredit/Debit Notes

EDIEDI

Profit Center Accounting/Profitability AnalysisProfit Center Accounting/Profitability Analysis

Accounts Receivable/General LedgerAccounts Receivable/General Ledger

Cash ForecastCash Forecast

FIFI

COCOPAPA


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MM Overview

SAPR/3

MM Materials Management . . Materials Management . .


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MM Overview

Material requirement planning

External procurementPurchasing

Internal procurementProduction

Invoiceverification

Goodsreceipt

Inventory management

Goodsissue

Transferposting

Warehousemanagement

Internal and external accounting Sales and distribution

Master dataMaterialBatchVendorCustomerG/LStorage bins...

MMMM


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Material - Central Master “Record” for Logistic

123Inventory

QualitySales Information

Production InformationDesc:---------------------

Product - 123

456Inventory

PurchasingDesc:---------------------

Raw Material - 456


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Data in the Vendor Master

General DataAddressPhone and Fax Number

Control Data

Purchasing DataTerms of PaymentContact Person Minimum Order Value

Account DataPayment TermsPayment MethodAccounting Clerk

Maintenance LevelClient Purchase Organization Company Code

• Mandatory maintenance at thePurchasing Organization Level

• Optional Maintenance at the Plant Level, the Vendor Sub-Range Level or acombination of the two


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External Procurement Environment

RequirementDetermination

Info Record

Price HistoryPurchasing Data

QuotaArrangement

SourceSourceDeterminationDeterminationVendor Vendor SelectionSelection

PurchaseOrder

Source ListSource List

InvoiceReceipt

RFQ

QuotationPurchaseRequisition

OutlineAgreement

Goods Receipt


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Goods Movement

Ad hoc.

Inventory Inventory

TransferPosting

GoodsIssue

GoodsIssue

Consumption Samples Sales Order

GoodsReceipt

Delivery Production


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Invoice Verification

VendorVendor invoiceinvoiceVendor 3Vendor 3

FIFICOCO

Blocked InvoiceBlocked Invoice

Tolerance Check?Tolerance Check?

Release ofBlocked Invoice

Release ofBlocked Invoice

e.g...

Orders / Projects /Cost centersOrders / Projects /Cost centers

G/L accounts / Accounts payableG/L accounts / Accounts payableVendorVendor invoice invoice

Delivery InvoiceDelivery Invoice

Preliminary PostingPreliminary Posting

Automatic Price UpdateAutomatic Price Update

PaymentPayment

OK !

InvoiceVerification


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PP Overview

SAPR/3

PP Production Planning . . Production Planning . .


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Production Planning Cycle

Sales and Operations PlanningSales and Operations Planning

Master Production SchedulingMaster Production Scheduling

Demand ManagementDemand Management

MRPMRP

MRP ListMRP List

Production Order Cycle orProduction Order Cycle orPurchase Order CyclePurchase Order Cycle

Master DataMaster Data

Material MasterMaterial MasterBill of MaterialsBill of MaterialsWork CentersWork CentersRoutingsRoutingsPRTPRT

Capacity PlanningCapacity Planning

Plant MaintenancePlant Maintenance

Sales & DistributionSales & Distribution

Materials ManagementMaterials Management

CostingCosting

PP


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Production : Process Chain

Production ChainProduction ChainProduction ChainProduction Chain

Outbound Logistics to MaterialsOutbound Logistics to MaterialsManagement or Sales ChainManagement or Sales Chain

Outbound Logistics to MaterialsOutbound Logistics to MaterialsManagement or Sales ChainManagement or Sales Chain

Inbound Logistics from Inbound Logistics from Procurement or Production ChainProcurement or Production Chain

Inbound Logistics from Inbound Logistics from Procurement or Production ChainProcurement or Production Chain Manufacturing

Process

Determine Production Requirements Determine Production Requirements via MRP Output or Manually)via MRP Output or Manually)

Determine Production Requirements Determine Production Requirements via MRP Output or Manually)via MRP Output or Manually)

Create production orderCreate production order(via conversion of planned order(via conversion of planned orderto production order or manually)to production order or manually)

Create production orderCreate production order(via conversion of planned order(via conversion of planned orderto production order or manually)to production order or manually)

Check material availabilityCheck material availability(Automatic)(Automatic)

Check material availabilityCheck material availability(Automatic)(Automatic)

Release Production OrderRelease Production OrderRelease Production OrderRelease Production Order

Print shop floor papersPrint shop floor papers(actual workorders)(actual workorders)

Print shop floor papersPrint shop floor papers(actual workorders)(actual workorders)

Withdraw materials from Withdraw materials from inventory (automatic/manual)inventory (automatic/manual)

Withdraw materials from Withdraw materials from inventory (automatic/manual)inventory (automatic/manual)

Produce GoodsProduce GoodsProduce GoodsProduce Goods

Confirm production ofConfirm production ofgoods is completedgoods is completed

Confirm production ofConfirm production ofgoods is completedgoods is completed

Transfer Produced Goods to InventoryTransfer Produced Goods to Inventory Transfer Produced Goods to InventoryTransfer Produced Goods to Inventory

FI

Settle Production OrderSettle Production Order Settle Production OrderSettle Production OrderFICOCO

Archive/Delete OrderArchive/Delete OrderArchive/Delete OrderArchive/Delete Order

MM


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Production Planning

1. Production Planning Functionality2. Master Data3. Sales and Operations Planning & Demand Management4. MRP5. Production Order & Capacity Planning


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Material Requirements Planning

3. Qrt 4. Qrt

Demands

Stochastic

Deterministic Planning

Stochastic

Deterministic Planning

Demands

Bill ofMaterialExplosion

Quantity:12.000

Capacity PlanningLot Sizing Procedures

Net Change


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MRP - Planning Procedures

PlanningProcedures

PlanningProcedures

DeterministicMRP

DeterministicMRP

Consumption-BasedPlanning

Consumption-BasedPlanning

Forecast-BasedPlanning

Forecast-BasedPlanning

Reorder PointPlanning

Reorder PointPlanning

AutomaticReorder Point

AutomaticReorder Point

ManualReorder Point

ManualReorder Point


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Production Control

Planned OrdersPlanned OrdersPlanned OrdersPlanned Orders

ReleaseRelease Production OrderProduction OrderReleaseRelease Production OrderProduction Order

FI CO

OpenOpen Production OrderProduction OrderOpenOpen Production OrderProduction Order

Goods IssueCosts

MM


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QM Overview

SAPR/3

QM Quality Management . . Quality Management . .


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QM Overview


SDSD

MMMM

PPPP

QMQM

PMPM

HRHR

FIFI

COCO

AMAM

PSPS

WFWF

ISIS








Fixed AssetsFixed AssetsMgmt.Mgmt.


WorkflowWorkflow


R/3R/3R/3R/3

The QM application module is a The QM application module is a quality control and information quality control and information system supporting quality system supporting quality planning, inspection, and control planning, inspection, and control for manufacturing and for manufacturing and procurementprocurement

QM


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QM in Logistics

History-dependent intensity of quality inspections

Goods receiptGoods receipt

Goods issueGoods issue

ProductionProduction

• Inspection during production

• Defects recording in QM

• Control charts

• Quality management in SD (certifies quality)

QMQM


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PM Overview

SAPR/3

PM Plant Maintenance . . Plant Maintenance . .


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Plant Maintenance - Overview

Create Work Orders

Create Work Orders

NotificationsNotifications

PlannedWork Orders

PlannedWork Orders

Schedule WO’sSchedule WO’s

Parts/SuppliesParts/Supplies

Labor Labor

Preventive/PredictiveMaint. WO’sPreventive/PredictiveMaint. WO’s

Master Data Master Data

Close and Settle WOClose and Settle WO

ReportingReporting

Special ToolsSpecial Tools

Pre-defined work stepsPre-defined work steps

EmergenciesEmergencies

External ServicesExternal Services Material

RequisitionsMaterialRequisitions

ShopPapersShopPapers

PM


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FI Overview

SAPR/3

Fi Finance . . Finance . .


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Components of FI FIFI

FI-GLFI-GL

FI-ARFI-AR

FI-APFI-AP

FI-SLFI-SL

FI-LCFI-LC

FI-AAFI-AA

General Ledger

Accounts Receivable

Accounts Payable

Asset Accounting

Special Ledger

Legal Consolidation


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Corporate Structure

FinancialFinancialManagementManagement

AreaArea


AreaArea


AreaArea


AreaArea


AreaArea


AreaArea

ControllingControllingAreaArea








WorkWorkPlace/JobPlace/Job

WorkWorkPlace/JobPlace/Job

MaterialMaterialProductProductMaterialMaterialProductProduct

PlantPlant Cost CentersCost CentersPlantPlant Cost CentersCost Centers

Company Code (Company)Company Code (Company)Company Code (Company)Company Code (Company)

Corp. Group LevelCorp. Group Level

Legal EntityLegal Entity

Controlling LevelControlling Level

Management UnitsManagement Units


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The Elements of Financial Accounting

Finance Information SystemExecutive Information SystemG/L Information System

Finance Information SystemExecutive Information SystemG/L Information System

Foreign ExchangeManagementForeign ExchangeManagement

BusinessAnalysisBusinessAnalysis

Cash Managementand ForecastCash Managementand Forecast

Multiledger

Bank Accounts

General LedgerPayablesPayables ReceivablesReceivables

Extended General LedgerExtended General Ledger

Consolidation

AccountsPayable

InvoiceInvoiceVerificationVerification

AccountsReceivable

CreditCreditManagementManagement


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The Components of FI

Configuration

• Organizational Structures– Company Codes– Business Area

• Organization of Accounting– Ledger/Sub-ledger

• Chart of Accounts

• Credit Control– Setting Credit Limits

• Master Records– G/L Accounts– Customers– Vendors– Banks

• Chart of Depreciation– Depreciation Areas– Assets

• Extended General Ledger

• Group Company

• Number Ranges

Configuration

• Organizational Structures– Company Codes– Business Area

• Organization of Accounting– Ledger/Sub-ledger

• Chart of Accounts

• Credit Control– Setting Credit Limits

• Master Records– G/L Accounts– Customers– Vendors– Banks

• Chart of Depreciation– Depreciation Areas– Assets

• Extended General Ledger

• Group Company

• Number Ranges

Functionality

Documents/Transactions Fiscal YearPosting AdjustmentsPayment Terms Balance Sheets/Income StatementsForeign Currency ClosingsTaxes On-Line DisplaySpecial G/L Transactions Interest CalculationPlanning CorrespondencePayment Program Fixed Assets

Reporting AnalysisLegal Consolidations

Functionality

Documents/Transactions Fiscal YearPosting AdjustmentsPayment Terms Balance Sheets/Income StatementsForeign Currency ClosingsTaxes On-Line DisplaySpecial G/L Transactions Interest CalculationPlanning CorrespondencePayment Program Fixed Assets

Reporting AnalysisLegal Consolidations

Modules

General Ledger Special LedgerAccounts Payable Legal ConsolidationsAccounts Receivable Credit ManagementAsset Accounting Cash Management and Forecast

Treasury

Modules

General Ledger Special LedgerAccounts Payable Legal ConsolidationsAccounts Receivable Credit ManagementAsset Accounting Cash Management and Forecast

Treasury

FIFIFIFI


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CO Overview

SAPR/3

CO Controlling. . Controlling. .


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Components of CO

CO Configuration

Organization Structures

Master Data

Planning Setup

Criteria and Values

Valuation

CO Configuration

Organization Structures

Master Data

Planning Setup

Criteria and Values

Valuation

CO ModulesCO Modules• Cost Center Accounting

• Order and Project Acctg.

• Transaction-BasedPostings

• Periodic Allocations

• Profit Center Acctg.

• Product Costing

• Activity-Based Costing

• Product Costing

• Budgeting

• Profitability Analysis

• Business Planning& Control

FunctionalityFunctionality• Settlement

• Internal Orders

• Open Item Management

• Profitability Analysis

• Overhead Management

• Planning

• Transaction-BasedPosting

• Periodic Allocations

• Monitoring ActualActivities vs. PlannedCOCOCOCO

CO


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The Elements of Managerial Accounting

Overhead CostControllingOverhead CostControlling

ProfitabilityAnalysisProfitabilityAnalysis


CostCenters

ReportStructure:

MarketSegmentRegionDivision

Cost of Sales

Cost of Period

PA

PCA

ReportStructure:

ProfitCenter

GLAccounts

ControllingControllingControllingControlling


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Integration Within FI/CO

Financial AccountingFinancial AccountingFinancial AccountingFinancial Accounting

AssetAccountingAssetAccounting



InvestmentControllingInvestmentControlling

PlantMaintenancePlantMaintenance

Gen. LedgerAccountingGen. LedgerAccounting

AccountsReceivableAccountsReceivable

AccountsPayableAccountsPayable

CashManagementCashManagement


Make toOrder Prod.Make toOrder Prod.

Cost CenterControllingCost CenterControlling

ActualCostingActualCosting

StaticStandardCosting

StaticStandardCosting

Product &ProductionControlling

Product &ProductionControlling

MassProductionMassProduction

ContinuousFlow Prod.ContinuousFlow Prod.

BatchProductionBatchProduction

Cost of SalesAccountingCost of SalesAccounting

PeriodAccountingPeriodAccounting

FlexibleStandardCosting

FlexibleStandardCosting

OrderControllingOrderControlling

ProjectControllingProjectControlling

Management AccountingManagement AccountingManagement AccountingManagement Accounting

Sales &ProfitabilityControlling

Sales &ProfitabilityControlling

Chart of AccountsChart of AccountsFIFI COCO

CentralCentralDocumentsDocuments

CentralCentralLine ItemsLine Items

CentralCentralTotalsTotals

AccountRevenue


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Integration

PPMM

FI CO

SD

FI

Which modules are involved?

PlannedRequirement

MRP

Requirementon component

level

PurchaseOrder

GoodsReceipt

InvoiceVerification

AccountsPayable

PlannedOrder

ProductionOrder

Productioncompleted

OrderSettlement

CustomerOrder

Shipping

Invoicing

AccountReceivable


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SAP R/3 : Components

ABAPPrograms

Configuration

Organization Structure

Key Data Elements

Functionality Configurations

ApplicationMaster Data

Transaction Data


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What is Customization ?Customization• the adaptation of application software to customer-

specific needs is accomplished in two ways :

Coding

Programming customer-specific code that replaces or complements components of the application

Configuration

Rendering the application appropriate to a specific customer by specifying data on which the application operates


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Organizational Structures in R/3

Cost AccountingCost Accounting

External LogisticsExternal Logistics

AccountingAccounting

Internal LogisticsInternal Logistics(MRP/Production)(MRP/Production)

Inventory ManagementInventory Management

Organizational Units

ClientClient

Controlling AreasControlling Areas

Company CodesCompany Codes

PlantsPlants

SalesSalesOrganizationsOrganizations

PurchasingPurchasingOrganizationsOrganizations

Valuation AreasValuation Areas

Storage Locations/Batches/Special StocksStorage Locations/Batches/Special Stocks


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Organizational Structure in SAP R/3

Human ResourcesHuman ResourcesControllingControllingClientClientClientClient

CompanyCode

PurchasingOrganization

PersonnelArea

Production PlanningProduction Planning

Sales and DistributionSales and Distribution Materials ManagementMaterials Management

Financial AccountingFinancial Accounting

SalesArea

ControllingArea

Plant


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ABAP Programming

SAP R/3 applications are written in the ABAP programming language, and run within the application layer of the R/3 System.

ABAP programs communicate with the database management system of the central relational database (RDBMS), and with the graphical user interface (SAPgui) at presentation level.


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Why we need ABAP Developments?

SAP Solution

SAP R/3 scope


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SAP Solution

SAP R/3 scopeSpecific company requirements


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SAP Solution

SAP R/3 scope Specific company requirements

New FunctionalityDevelopment


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SAP Solution

SAP R/3 scope Specific company requirements

Non SAPapplications

New FunctionalityDevelopment


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Types of ABAP Developments

• Reports

• Interfaces

• Conversions

• Enhancements