AdApt And Grow with SAp® Business Bydesign™ - · PDF file7 Payment and Liquidity management ... 4 SAP Functions in Detail – Adapt and Grow with SAP Business ByDesign. Summary

The SAP® Business ByDesign™ solution enables midsize companies like yours to gain the insight into your business that can help you achieve your business objec-tives. The solution connects the entire range of your busi-ness processes to give you full visibility into your opera-tions. Because it is a compre-hensive business solution, you have the support you need for your core business activities, helping you to optimise your financials, manage your work-force, and integrate your supply chain.

AdApt And Grow with SAp® Business Bydesign™An Overview Of Key funcTiOnS ThAT OPTimiSe BuSineSS OPerATiOnS

SAP Functions in DetailSAP Business ByDesign

4 SAP Business ByDesign 4 unify Operations with

unprecedented Business integration

6 Achieve Financial Excellence 6 financial and management

Accounting 6 General Ledger management 6 fixed-Asset Accounting 6 inventory Accounting 7 management Accounting 7 cash flow management 7 Payables and receivables

Processing 7 Payment and Liquidity

management 8 Tax management 8 expense and reimbursement

management 8 compliance 8 Analytics

9 Build Strong Customer Relationships

9 marketing 9 market Development 9 campaign management 9 Sales 9 Account and Activity management 9 new-Business Development 9 Products and service sales 10 Product and Service Portfolio

management 10 customer invoicing 10 Service 10 entitlement management 10 customer care 10 field Service and repair 10 Analytics

11 Manage the Supply Network 11 Supply chain Setup

management 11 Supply chain Design 11 Production model management 11 resource management 11 Supply chain Planning

and control 11 Demand Planning 11 Demand management

and Order confirmations 12 Supply Planning

12 exception monitoring and control

12 Supply and Logistics control 12 manufacturing, warehousing,

and Logistics 12 inbound and Outbound Logistics 13 internal Logistics 13 inventory management 13 Production 13 Quality Assurance 13 Tracking, Tracing, and identification 13 Task management

and Automation

14 Achieve Purchasing Excellence 14 Sourcing 14 Sourcing and contracting 14 Purchasing Product Portfolio

management 14 Supplier Base management 14 Purchasing 15 Purchase request and Order

management 15 Self-Service Procurement 15 Supplier invoicing 15 Analytics

16 Manage People and Talent 16 corporate Organisational

management 16 People master Data management 16 Organisational Structure

management 16 human resources 16 Personnel Administration 16 Time and Labour management 17 compensation 17 Payroll 17 employee Self-Service 17 employee Self-Services 17 management Self-Services 17 compliance 17 Analytics

18 Optimise Project Efficiency 18 Project management 18 Project Planning and execution 18 Accounting for Projects

20 Quick Facts

ContEnt

The SAP® Business ByDesign™ solution is the most complete and adaptable on-demand business solution available to midsize companies. it allows organi-sations like yours to adapt and to grow – and gain the unified business control required to achieve your business objec-tives. The solution connects your opera-tions, providing full and comprehensive visibility and control so that you can meet your company goals, optimise your finan-cials, focus on your customers, manage your workforce, integrate your supply chain, drive successful projects, empo w- er smarter purchasing, and facilitate full compliance. Because it is an on-demand solution — managed, monitored, and main-tained by SAP experts — your iT require-ments are simplified, and your costs to acquire and support the solution are low.

Unify Operations with Unprecedented Business Integration

SAP Business ByDesign eliminates departmental silos and provides an unmat-ched level of automation and transparency across all business areas. you can make sure that your staff follows procedures and completes them correctly, consisently, and efficiently. you can clearly structure employee and manager responsibilities so that tasks are properly delegated and the people best able to complete certain work are assigned to that work. And you can streamline business operations because the software integrates proces-ses — enabling your employees to work together efficiently. for example, SAP Business ByDesign links operations ini-tia ted by an incoming sales order to the operations that must be carried out to fulfil that order and to achieve the revenue on it. This integration allows multiple areas such as your sales, fulfillment, billing, and receivables groups to work as an efficient, focused team.

SAp® Business Bydesign™The mOST cOmPLeTe On-DemAnD BuSineSS SOLuTiOn fOr miDSize cOmPAnieS

The SAP Business ByDesign solution connects your opera-tions, providing full and comprehensive visibility and control so that you can meet your company goals.

4 SAP Functions in Detail – Adapt and Grow with SAP Business ByDesign

Summary of Key Functionality

financial management

• financial and management accounting– General ledger management– fixed-asset accounting– inventory accounting– management accounting

• cash flow management– Payables and receivables processing– Payment and liquidity management– Tax management– expense and reimbursement management

customer relationship management

• marketing– market development– campaign management

• Sales– Account and activity management– new-business development– Product and services sales– Product and service portfolio management– customer invoicing

• Service– entitlement management– customer care– field service and repair

Supply chain management

• Supply chain setup management– Supply chain design– Production model management– resource management

• Supply chain planning and control– Demand planning– Demand management and order confirmation– Supply planning– exception monitoring and control– Supply and logistics control

• manufacturing, warehousing, and logistics– inbound and outbound logistics– internal logistics– inventory management– Production– Quality assurance– Tracking, tracing, and identification– Task management and automation

human resources management

• corporate organisational management– People master-data management– Organisational structure management

• human resources– Personnel administration– Time and labour management– compensation– Payroll

• employee self-service– employee self-services– management self-services

Project management

• Project planning and execution• Accounting for projects

Supplier relationship management

• Sourcing– Sourcing and contracting– Purchasing product portfolio management– Supplier-base management

• Purchasing– Purchase request and order management– Self-service procurement– Supplier invoicing

5SAP Functions in Detail – Adapt and Grow with SAP Business ByDesign

SAP Business ByDesign supports your financial activities, giving you insight into your company’s performance. At the same time, it helps you automate and streamline your financial processes, optimise cash flow, and comply with regulations. what makes this possible is the integration of your business transactions and opera-tional data with your financial data. Data from across your company flows auto-matically to financial activities, such as payables and receivables processing, and to accounting processes, such as general ledger and inventory accounting – so your books are always up-to-date, and you always know where your company stands.

Financial and Management Accounting

with SAP Business ByDesign, you gain a single, up-to-date view of the financial state of your business. Because your ope-ra tions are integrated with financials, all financially relevant business transactions that occur in the course of daily opera-tions are tracked within the software. This data drives all financials-focused opera-tions such as payables and receivables processing and cash and liquidity manage-ment. in addition, you can analyse sales orders to determine expected profit, look at current billing to determine profit as invoiced, and examine booked transac-tions to determine earned profit.

General Ledger managementwith SAP Business ByDesign, you can streamline financial accounting and report-ing and centrally manage and perform activities, such as creating new accounts, viewing accounting documents, and per-forming accounting tasks. Because the software integrates processes across your company, you always have real-time, reconciled finan cial statements. The soft-ware uses a centralised general ledger that enables you to instantly view your finan-cials through different sets of account ing rules. you can even set up multi-GAAP reporting, which allows you to manage ledgers in parallel for different fiscal years or charts of accounts. Transactions in foreign currency are converted into your company currency using preconfigured currency conversion settings.

By automating a wide variety of pro ces-ses and tasks, SAP Business ByDesign also supports collaborative, fast period-end closing for month-end, quarter-end, or year-end periods. And with leveraging built-in analytics and reporting functions, you can run analyses for month-end, quar-ter-end, or year-end closing and rele vant reports right from your desktop.

fixed-Asset AccountingSAP Business ByDesign makes it easy to manage the complete life cycle of fixed assets, from acquisition to retirement. you can record, manage, and track business transactions for all assets acquired, and track depreciation of fixed assets through to their retirement. The software enables you to track all manual postings for trans-actions as well as automatically calculate and determine the value of fixed assets using standard statutory depreciation methods or replacement values when needed. At any time, you can run precon-figured reports for legal, tax, and inter-nal purposes, such as a fixed assets inventory, schedule of fixed assets, and depre ciation.

inventory AccountingBecause most business processes sup-ported by SAP Business ByDesign are connected to financials, data flows auto-matically to inventory accounting. As a result, every material movement is recor-ded instantly and valuated by the software. in addition to tracking inventory quantities and their respective values, the software immediately reconciles raw material con-sumption, production confirmations, and overhead allocations with work-in-process inventories.

AChiEvE FinAnCiAl ExCEllEnCESeTTinG The fOunDATiOn fOr BuSineSS SucceSS

Data from across your company flows auto-matically to financial activities, such as paya-bles and receivables processing, and to accounting processes, such as general ledger and inventory account-ing, so your books are always up-to-date, and you always know where your company stands.


management AccountingTo support management requirements for different levels of cost and revenue analysis, SAP Business ByDesign simpli-fies and automates how you perform cost accounting, profitability analysis, project cost accounting, and profit centre reporting. The solution links the different sub led-gers used to perform various calculations to the general ledger so that all ledgers are always up-to-date.

with cost accounting, you can manually enter line items, allocate material and inter-nal consumption to different cost centres, assign overhead costs, and accurately track project costs across the company. At the same time, production managers can get an understanding of how much it costs to produce goods by analysing manufacturing costs per production lot; production costs are automatically reflec-ted in the work-in-progress balances in finan cials. equally important, sales mana -gers gain fast access to reports, such as up-to-date profit analysis. you can also ana lyse revenues and costs by profit centre to gain clearer understanding of the profitability of individual business units.

Cash Flow Management

with SAP Business ByDesign, you can track and optimise your cash flow and keep tight control of receivables, paya-bles, payments, and liquidity. Automation accelerates the collection of your receiv-ables and supports the timely processing of your payables. using analytics, you can immediately assess your cash position and liquidi ty forecast. you can also moni-tor and manage employee expenditures and reimbursements, as well as produce tax declarations for tax authorities.

Payables and receivables Processingwith SAP Business ByDesign, you gain complete control over your payables and receivables. you can centrally manage payments, such as checks, credit cards, and bills of exchange, and automate pay-ment and clearing processes using data entered manually or data provided electro-nically from payees. The software auto-matically creates payment and dunning propo sals, which your accountants can then choose to accept or resolve manu-ally. All open items in foreign currency are converted automatically into your company currency based on dates that you specify.

Payment and Liquidity managementBecause the solution gives you precise control over payments and receivables, you can track your cash inflows and outflows, analyse your liquidity situation in real time, and use insights gained to

make sound cash management decisions. The software also suggests advantageous payment strategies for liabilities and supports a highly automated payment process, enabling you to schedule pay-ments and take advantage of early pay-ment discounts offered by your suppliers. it supports multiple payment methods, including checks, bank transfers, and credit cards.

SAP Business ByDesign also enables you to centrally manage data about the banks with which you do business, such as address and routing numbers, and use electronic banking functions to commu-nicate quickly and easily with your banks, fiscal authorities, and business partners.


Tax management with SAP Business ByDesign, all informa-tion for product tax returns and withhol-ding tax returns is presented to you on a transaction basis, enabling you to pre-pare those returns and pay the requisite taxes. Taxes are posted to different tax accounts depending on each country’s legislation. This facilitates compliance with the legal regulations in the countries where you do business.

expense and reimbursement managementwith SAP Business ByDesign, you can set up reimbursement rules and policies, monitor travel expenses and other emplo-yee expenditures, and reimburse appro-ved expenses to employees quickly and efficiently. The software supports an automated entry and reimbursement process that speeds up the process by enabling employ ees to submit reports online and mana gers to approve them online. Because all data is centralised, you can generate detailed management reports that provide transparency into how money is spent. when you need to introduce new cost-saving measures, you simply update the centrally managed policies; the solution automatically enforces them across your organisation.

Compliance

SAP Business ByDesign provides func-tionality that greatly assists you in ensuring ongoing compliance with local, natio nal, and international laws and regulations. you can set up financials within SAP

Business ByDesign to use GAAP for all supported countries in which your com-pany operates. you can run multiple books in parallel – with each following a different accounting standard – and perform online, country-specific regulatory reporting.

The solution also provides a transpa rent audit trail that records changes to data from various sources and at multiple levels of detail – from top-level aggregated figures to original data for a given busi-ness process. SAP Business ByDesign helps reduce opportunities for fraud by facilitating internal controls – helping your company stay in compliance with appli-cable laws, such as the Sarbanes-Oxley Act of 2002.

Analytics

Analytics built into the solution can give your employees more insight into busi-ness performance and help them to res-pond appropriately to changing market

conditions. using online interactive report-ing and analysis tools, your employees can run financial reports whenever needed, create what-if analyses, drill down to view the granular detail behind figures in reports, personalise reports, and down-load data and reports to microsoft excel for additional analysis.


with SAP Business ByDesign, you can effectively and successfully manage all relationships with your customers in order to satisfy their expectations and keep them as valued customers as well as turn leads into new customers – both of which can result in driving new revenue. The software fully integrates the entire range of your customer-focused processes and provides a comprehensive view of relevant data. This means your customer-facing staff always have all the information they need to support sales and marketing strategies, respond to customer needs, and reduce time to cash. At the same time, you gain the transparency and con-trol needed to understand your profit margins – even at the point of sale – and focus on business activities that substan-tially increase customer value.

The integration of your business transac-tions and operational data with customer-related activities and data makes this possible. Data from across your company flows automatically to activities, such as lead generation and opportunity mana-gement.

Marketing

using SAP Business ByDesign, you can manage your marketing and presales acti-vi ties including market development, lead generation, and lead qualification better. you experience increased efficiency through the close cooperation of your marketing and sales teams.

market Developmentusing a central marketing and sales data repository, you can enter and track market

and competitor information, such as com-pany profiles, pro ducts, and market research notes. you can also centrally manage marketing projects, giving project teams instant access to the tools and data they need to achieve efficiency of execu-tion and ongoing control.

campaign managementyour marketing and sales teams can use SAP Business ByDesign to improve the planning, organisation, and control of their marketing activities. employees can seg-ment customers, personalise mass mail-ings to specific prospects or customer groups, and distribute direct mailings using a variety of channels, such as e-mail, letter, or fax.

Sales

SAP Business ByDesign gives you access to comprehensive customer-related infor-mation about opportunities, quotes, orders, and invoices. your employees can verify product availa bility, predict future sales, identify cross-selling and up-selling oppor-tunities, and manage interactions with customers and promising leads to accele-rate the sales process.

Account and Activity managementyou can use SAP Business ByDesign to manage interactions with prospects and customers – regardless of the chan-nel – and maintain a history of those interactions. information about customers and other business partners is centrally maintained and captured in detailed fact sheets. The solution includes an ABc analysis report, which categorises cus-tomers into three groups (A, B, and c) based on criteria you specify.

new-Business DevelopmentThe integration of processes in SAP Business ByDesign sees to it that infor-mation gathered about prospects during lead generation is available during mar ke-ting, sales, and service activities. your employees can specify qualification level (such as cold, warm, and hot), chance of success, expected value of potential sales, and more. And a built-in “sales assis tant” takes them step-by-step through your preferred sales process. They can also create sales quotes using predefi-ned forms, check product availability, display pricing details, provide discounts, calculate prices, enter payment and shipping information, and run available-to-promise checks in real time for the requested deli-very date. using analy tics, you can analyse the number of leads and opportunities, sales volume, and opportunity pipelines.

Products and service saleswith SAP Business ByDesign, you can manage your sales orders and the related sales quotes and opportunities using end-to-end scenarios, such as selling from stock or selling productised services (services packaged as a product). you can post invoices and record the cost of sales resulting from the provision of services or the delivery of goods. you can set up automated approvals for cus-tomer returns valued at or below a speci-fied dollar value. And invoice exceptions are also identified and routed automatically to the appropriate employee for resolu-tion. At any time, you can access manage-ment reports for up-to-date information on sales accruals and activities, profit-ability of sales orders, return rates, and overall profit.

Build StronG CuStomEr rElAtionShipSKeePinG The fOcuS On yOur cuSTOmerS


Product and Service Portfolio managementwithin SAP Business ByDesign, you can store and maintain a complete portfolio of up-to-date information on your products and services. The solution gives you a complete overview of the service or pro-duct by gathering together the information you maintain into an individual fact sheet. you can create and modify product cate-gories, define price lists, and establish fle-xible pricing policies so that prices and discounts are calculated automatically and applied to specific quotes, orders, and invoices before being routed for approval.

customer invoicing you can create invoices individually, col-lectively, or as part of automatic invoice runs. By creating invoice documents based on the delivery of products and services – independent of invoice runs – you can clear items without waiting for the next scheduled invoice run. The solu-tion enables you to periodically process invoice requests due for invoicing, as well as create credit memos for returns received from your customers or part-ners – even without reference to a sales or service order. Analytics provide up-to-date information about your invoice volume and open invoices.

Service

SAP Business ByDesign gives your orga nisa tion the support it needs to offer ser vice that differentiates itself from the com pe tition and increases customer satis-faction. with a compre hensive view of customers at their finger tips, your employ-ees can make sure that your company meets all commit ments to its customers, so that your company delivers excellent service.

entitlement managementyou can use SAP Business ByDesign to register and track individual warranty entitlements against serialised products. you first define your warranty offerings and then apply the warranties automati-cally when carrying out your service processes. you can use the software to help ensure that country-specific legal requirements are met as well as to offer different warranties for products with different life cycles. Built-in analytics provide insight into where and how often your service categories are used in ser-vice processes and how well you have met service level or performance objec-tives.

customer careyour employees can use real-time product information maintained in SAP Business ByDesign to answer customer queries, respond to customer service needs, and provide superior customer service. emplo-yees can track the progress of customer

inquiries, from creation to resolution, and attach electronic documents to a custo-mer’s service record or account. you can also create and maintain a repository of common customer problems and potential resolutions to expedite issue resolution.

field Service and repairSAP Business ByDesign tracks the status of service delivery so you can view detailed information about incidents and see that commitments to customers are met and tasks completed on time. The solution helps you prioritise and organise employee workloads and determine the resources that are required, including the estimated time to complete the ser-vice, required spare parts, and the avail-ability of those spare parts. if a task falls behind schedule, an automated escala-tion mechanism alerts the responsible employee. escalations can also be triggered manually.

Analytics

SAP Business ByDesign uses customer-related information from different areas of your company – such as marketing, sales, service, and financials – to build online fact sheets that provide a 360-degree view of each customer. your employees see all customer-related infor-mation, such as opportunities, quotes, orders, invoices, and service requests, in a single place. Built-in analytics and reporting functions make it easy to ana-lyse the profitability of customers, prod-ucts, channels, and regions in real time. your sales staff can also create, manage, and analyse sales plans, targets, and forecasts.

The software fully integrates the entire range of your customer-focused processes and provides a com prehen-sive view of relevant data, so your customer-facing staff always have all the information they need.


SAP Business ByDesign offers innova-tions that help you ensure efficient and effective supply chain operations so that you can control costs and maximise reve-nue. The software is flexible enough to support whatever business models you choose, enabling you to add, enhance, and automate processes as needed. it also makes it easy for your employees to get their work done and to concentrate on the most important activities for your organisation’s success.

Supply Chain Setup Management

with the SAP Business ByDesign solu-tion, you can model an efficient supply chain network that enables you to respond to the changing needs of the market. By giving you an external and internal view of your supply chain, the software enables you to accurately reflect the real world in your supply chain activities.

Supply chain DesignSAP Business ByDesign allows real-world modeling of your company’s supply chain that is independent from your enterprise model; as a result, you gain two views of the supply chain: a view of the exten-ded supply chain network – from supplier to customer – and an internal view of specific sites, such as the layout of a warehouse. you can model your distribu-tion processes as well as your extended supply chain – including your business partners – by grouping customers into transport lanes (based on transport conditions) and transport zones (based on geography). furthermore, you can model your company’s internal operations; using a common logistics layout, you can tailor the way you manage materials. And because you can define rules that deter-

mine how you pick, make, and put away material, you can execute logistics tasks in a way that best suits your company.

Production model managementSAP Business ByDesign enables you to define all the materials and processes you need to manufacture a product down to the operations and activities needed to manufacture it. By supporting a unique production model that takes into account both planning and execution, the software gives you end-to-end business process transparency. you can view, create, and change production models and all their related data via a production bill of material and a bill of operations. Once a production model has been created, you can release it to supply planning and production execu-tion so that employees work from a com-mon version of the production model. you can also create a detailed bill of material for each pro duct, define several product variants within one bill of material, and control changes made to a product during the product life cycle.

resource managementwith SAP Business ByDesign, resources are classified and organised based on their business use in planning, execution, and financials. using these resources (both people and equipment) to define production processes in the production model, you can determine capacity utilisa-tion, plan resources efficiently, and evalu-ate the cost for utilising resources within financials.

Supply Chain Planning and Control

SAP Business ByDesign enables your planners to manage supply and respond

to demand in such a way as to achieve optimal material flow – all while consid-ering capacity constraints. in addition, an exception-driven approach with built-in analytics and alerts helps your planners focus on priority tasks. They can plan and consolidate procurement requirements, create feasible production plans, and determine and confirm realistic delivery dates.

Demand Planningwith SAP Business ByDesign, you can maintain, calculate, and change demand forecasts for products or product groups. you can group pro ducts with similar demand patterns into demand plans and define the related parameters. for further control, you can maintain time periods and other planning parameters used to create the forecast. forecasts can be created automatically by SAP Business ByDesign (or manually within the soft-ware) using statistical forecasting models and historical data. Once you have cre-ated your demand forecast, you can release it to supply planning to guide current and future production and procure-ment until you receive actual sales orders.

Demand management and Order confirmationswith SAP Business ByDesign, you can consider different demand types – includ-ing sales orders, service orders, demand forecasts, and dependent demand – and determine how these are combined to form current planned demand. Support for demand management enables you to assign different demand types to diffe-rent fulfillment strategies, such as make-to-stock and assemble-to-order. you can view current demand and consider cur-rent stock and expected receipts before

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confirming customer orders. your current supply situation can be reflected in sales order confirmations via mass confirmation updates. finally, you can determine the location from which demand is fulfilled and how long shipping will take.

Supply PlanningSAP Business ByDesign supports mate-rial and capacity planning that takes supply chain constraints, such as lead times, into account as well as demand forecasts and actual customer demand. with a view into supply and demand for planning and execution, you can monitor the status and performance of your supply chain pro cesses. you can generate the supply needed to guarantee material availability and determine the load placed on your planning-relevant resources. Different planning procedures and lot-sizing meth-ods help you meet your company’s mate-rial requirements. Planning-driven pur-chase and production proposals can be released to execution as purchase and production requests. you can also perform capacity planning by calculating the load

for all resources relevant to planning. you can identify bottlenecks and carry out rescheduling functions accordingly.

exception monitoring and controlSupport for exceptions selection and control enables you to monitor and react to exceptions that occur in your supply planning processes, such as stock short-ages or violations of safety-stock values. using exceptions, the software alerts your supply planners to any critical deviations that cannot be resolved automatically.

Supply and Logistics control SAP Business ByDesign provides a central access point from which you can control activities related to production, purchasing, and logistics execution. you can trigger and monitor execution proc-esses for purchasing and production. Before release, you can merge multiple proposals into one based on product and supplier criteria. you can also trigger the outbound logistics execution process, monitor the overall delivery progress, and estimate the warehouse workload. for

optimal flexibility, you can set up and exe-cute automated runs to release purchase and production proposals and outbound logistics requests to purchasing, produc-tion, or warehousing, respectively based on predefined criteria.

Manufacturing, Warehousing, and Logistics

The SAP Business ByDesign solution helps you synchronise your warehouse and manufacturing tasks and gives you more control over their execution. you can consolidate and merge warehouse, production, and quality assurance opera-tions as needed. Tight integration of your inventory management, warehousing, and manufacturing processes enables you to make, move, and distribute goods more efficiently. in addition, the tight connection between supply chain execu-tion and financials within SAP Business ByDesign facilitates synchronisation of related financial data so that your books are always up-to-date.

inbound and Outbound LogisticsThe software enables you to plan and control incoming and outgoing stock, making it easier to manage receiving and shipping processes in the warehouse. Support for receiving enables you to easily process inbound deliveries and manage all subsequent unload and put-away activities. The software also sup-ports shipping processes like pick and load activities. To facilitate field service and repair activities, you can efficiently issue spare parts for service orders and keep track of spare parts.

SAP Business ByDesign offers inno-vations that help you ensure efficient and effective supply chain operations so that you can control costs and maximise revenue.


internal Logisticswith SAP Business ByDesign, you can move stock – and keep track of it – within your warehouse and production area. you can define processes for moving com-ponents and goods between production areas, storage locations, picking zones, and staging areas within the warehouse. The software supports one-step and two-step replenishment and removal proces-ses, but you can define how many steps you want and generate these move tasks automatically or manually.

inventory managementSAP Business ByDesign provides auto-mated support to help you perform physi-cal inventory counts in a warehouse – for example, by providing inventory docu-ments, counting task lists, and stock overview reports. you can define the parameters for periodic inventory count-ing, create tasks for counting inventory, and confirm or undo the confirmation of inventory changes. As a result, you can easily maintain up-to-date inventory data.

ProductionSAP Business ByDesign helps you design your production process to meet your u- ni que business requirements and manage all steps in the process, including planning and preparation, monitoring and control-ling, and production completion. At the same time, the software helps you increase efficiency and transparency across all production-related operations. Production requests received from plan-ning can be used as the basis for all steps in the production process. requests are converted to production orders and then released, either manually or automatically, to trigger production.

The software also helps you organise activi ties for production-specific exe cution, confirmation, and completion. you can prepare, plan, confirm, and monitor daily production tasks and view reports. when you release a production order, a produc-tion lot and production tasks for workers to perform and execute are created. During execution, the production lot col-lects quantities used, creates confirma-tion documents, and serves as the basis for integration with financial accounting.

Quality AssuranceSAP Business ByDesign helps ensure that products meet predefined quality requirements. you can update quality master data, such as inspection plans and quality-code catalogues, and attach quality documents to purchase orders and con-tracts. Support for quality planning ena-bles you to focus on setting quality objec-tives, specifying necessary operational processes and resources, and working toward defect prevention and continuous improvement with your internal and exter-nal business partners. for example, you can define the basic data required to plan and execute quality inspections, the pro-ces ses relevant for inspections, the pro-ducts to inspect, the suppliers to monitor, and where and how inspections should take place.

Tracking, Tracing, and identificationSAP Business ByDesign enables you to track products throughout your business processes – key functionality that helps you comply with regulatory requirements. you can define logistics units, such as pallets, or modify the details of existing logistics units. The software also enables you to manage batches and lots through identified stock, which is inventory that

is separated and uniquely identified by identical characteristics. you can create identified stock or modify the details of existing identified stock, such as expiry dates. in addition, you can add attach-ments, such as textual notes, specific to the identified stock.

Task management and Automation with SAP Business ByDesign, you can simplify execution processes and tasks and tightly integrate your manufacturing (make) and warehousing (move) proce-sses. The software provides employees in the execution area with a single point of entry for task execution. you can orga-nise the work for your employees in the form of logistics task folders and struc-ture the processing of all logistics tasks according to your company’s re -quire-ments. Tasks are automatically pushed to your workers, and the solution guides them through their daily work with all the relevant information they need. if desired, you can also automate logistics proces-ses further through the use of mobile devices, bar codes, and radio frequency identification (rfiD).


SAP Business ByDesign provides support for purchasing activities that increa ses your employees’ efficiency. Automated processes reduce manual activities, and exception-based decision support helps employees prioritise their work. And effective supplier-base mana-gement enables you to maintain strong relationships with your suppliers through-out the supplier life cycle. what's more, the software makes it easy to communi-cate and collaborate with your suppliers.

Sourcing

By providing a central location for all sup-plier-related information, SAP Business ByDesign helps your purcha sing group manage the entire life cycle of supplier relationships. The solution helps optimise manual processes, such as determining the source of supply, and helps you manage requests for quotations (rfQs),

making it easier for you to find new suppli-ers and negotiate contracts. you can work together with suppliers during critical steps of the procurement process, such as during contract renewal, and track and monitor supplier performance according to the commitments they’ve made.

Sourcing and contractingSAP Business ByDesign enables you to optimise your sourcing and contracting processes. you can manage the complete contract life cycle – from negotiating and creating contracts to maintaining and moni toring contract details – and leverage strategic partnerships and pricing to save money. Tight integration between projects, rfQs, and contracts helps you plan and control spending for projects.

Through comprehensive support for rfQs, you can find new suppliers and optimise your supplier base. The software also enables you to create sourcing requests from purchase requests or con-tracts that are about to expire. Similar goods or services can be bundled and sourced together, which helps you achieve greater savings when requesting quotes. using fax, e-mail, XmL, and interactive forms, you can send rfQs and negotiate contracts and prices. when you receive quotes, you can process them automatically or manually. intelligent quote com-parison functions make it easy to identify the most suitable proposals and convert quotes into purchase orders or contracts. your purchasing group can even attach quality inspection documents to contracts and purchase orders.

Purchasing Product Portfolio managementSAP Business ByDesign makes it easy to create and update data about materials

and services – such as repair and mainte-nance, consulting, and after-sales ser-vices – used by your company. you gain a single view of all information related to a specific material or service, and you can easily make changes and add information about new materials and services as needed. you can also load internal cata-logues and link to external catalogues, change them as needed, and make them available within your employee self-service process for purchasing.

Supplier Base managementSAP Business ByDesign enables you to manage the entire supplier life cycle – right down to authorising suppliers for certain product categories, such as office supplies – and assign dates that specify the effective period for purchasing the product category from that supplier. you can store all supplier and bidder informa-tion in a single place; make informed decisions about current and potential suppliers; and add, activate, or remove suppliers from your supply chain using a phased introduction and removal pro-cess. in addition, you can maintain infor-ma tion about service agents, such as independent contractors, in your supplier base.

Purchasing

SAP Business ByDesign enables you to integrate and automate your procure-ment tasks – such as creating purchase orders and verifying invoices – and make your entire procurement process more efficient. in addition, self-service procure-ment empowers your employees to create and monitor their purchase requests, giving procurement professionals time to focus on strategic and value-added tasks.

AChiEvE purChASinG ExCEllEnCE mAKinG The riGhT BuyinG DeciSiOnS

Automated processes reduce manual activities, and exception-based decision support helps employees prioritise their work. And effective supplier-base manage-ment enables you to maintain strong relation-ships with your suppliers.


Purchase request and Order managementwith SAP Business ByDesign, you can monitor and track all of your company’s purchase requests. On the basis of prede-fined criteria, several purchase request items can be bundled into one document to gain pricing advantages through quan-tity discounts. if you need to handle a pur-chase request manually, the solution pro-vides an overview of potential suppliers and contracts. it can automatically determine the best source of supply and then create and send a purchase order to a supplier. if none of the proposed sour ces can be used, you can send out an rfQ or trigger the creation of a new contract.

you can create purchase orders manually or automatically as a follow-on document to purchase requests or winning quotes. you can configure the software to specify when a manager’s approval is required. for goods, you can receive confirmations from suppliers that indicate their ability to deliver the requested quantity of items by a specified date. in addition, you can track goods and ser vices receipts and

purchase orders for outstanding or over-due materials and services. you can con-firm the receipt of non-stock materials or the completion of services as well as materials procured for sale to customers or for use in manufacturing.

Self-Service ProcurementSupport for self-service procurement within SAP Business ByDesign stream-lines and accelerates purchasing proc-esses and reduces the volume of routine purchasing tasks. you can use supplier catalogues in purchasing processes that involve shopping carts, purchase orders, and requests for quotation. your purchas-ing group creates and maintains supplier catalogues in SAP Business ByDesign. your employees can use the catalogues to select items from those suppliers. They can then submit electronic requests for goods and services to the purchasing group, monitor the approval process, and confirm receipt of the product or service. Besides reducing purchasing effort, this automated process helps ensure that purchases conform to your company’s purchasing policies.

Supplier invoicingSAP Business ByDesign helps you stream line invoicing by automating the process flow and minimising manual inte r- action. invoices – both paper and elec-tronic – can be entered with or without reference to a purchase order or a goods and services receipt. Paper invoices can be scanned and their data entered into SAP Business ByDesign. The solution minimises invoice errors by automatically matching references and identifying duplicates and variances detected in elec-tronic invoices, which can be submitted, for example, via interactive forms. it auto-matically compares all invoices with their corresponding purchase orders and goods and services receipts and directly posts all invoices that match completely. if any inconsistencies are detected, such as a price variance or a duplicate invoice, exceptions are raised, which can be hand-led automatically or manually.

Analytics

Spend-analysis functionality in SAP Business ByDesign gives you insight into the performance of sourcing and purchas-ing activities to help you find more ways to save money and work with the best suppliers. Standard reports help you moni-tor supplier performance and analyse prices, invoices, and purchase orders.


with SAP Business ByDesign, your hr-related processes are linked across other areas of your business. By integrat-ing the different areas of your company – and the related data – the solution helps eliminate departmental silos and stream-lines business operations. The solution helps you successfully manage your people and talent – while freeing up staff to provide high-quality, value-added servi ces.

Corporate Organisational Management

with SAP Business ByDesign, you can dynamically create and manage informa-tion about your organisational structure and provide a single, consistent view of your organisation from all perspectives of the business. in addition, you can easily reorganise the company organisational structure and the related organisational master data, giving you superior business agility.

People master Data managementSAP Business ByDesign enables you to efficiently create, view, and manage employee records, as well as maintain information about service agents who perform services on behalf of your com-pany, such as independent contractors. The solution streamlines and automates the new-employee onboarding process – from hiring the right person to determining job responsibilities and data access rights. it automates routine process steps for setting up and managing users in the soft-ware – for example, by proactively propos-ing access to work centres based on the organisational unit to which employees are assigned. using responsibility rules, you can distribute and adjust workloads.

As business needs change, you can quic k- ly change user responsibilities, appli ca-tion access, and reporting lines. when the responsibilities of an organisational unit are changed, individual emplo yee access rights to specific data and work centres automatically change as appro priate.

Organisational Structure managementwith SAP Business ByDesign, you can dynamically create and manage informa-tion about your company’s entire organi-sational structure. This single organisatio-nal view is used to auto mate key business processes and functions across all appli-cation and business areas. for example, you can edit and upload job descriptions and link employees to organisational units and jobs – all within the solution. equally important, you can build a high-level model of your current – and future – organisatio-nal structure using organisational units – the basic building blocks of an organisa-tional structure. All elements of the orga-ni sa tional structure are time-dependent, which means that you can determine when changes should take effect.

Human Resources

SAP Business ByDesign helps you inte-grate your hr processes with other core business processes so that appropriate hr data is available to employees and departments when they need it. The soft-ware has built-in workflows and function- a lity, such as hr-related forms and reports, to help your employees manage and com-plete their tasks better.

Personnel Administrationwith SAP Business ByDesign, you can centrally manage and execute all employ-ee-related tasks that involve personnel

administration. every step follows guide-lines and standards established by your company, as well as those of the regu-latory authorities in the countries where you operate. The software automatically makes changes to employee authorisation profiles and company workflows resulting from personnel-specific events, such as a transfer. in addition, you can directly access online personnel files where you can store and edit personal and organi-sa tio nal employee data, as well as data rela ted to employment, such as contracts.

Time and Labour managementwith SAP Business ByDesign, you can effectively manage working times across your company. employees can use self-services to enter their own working times, and external service providers can record their working times for the purchase orders they are billing against. integration with other business processes means that time data can be accessed automatically and used by other business areas for further processing and planning. for example, leveraging project management integration, you can plan work schedules for various time periods. The software enables you to define reusable time sche d- ules, combine daily patterns into different rotation patterns, and create individual work schedules for specific employees.

you can record detailed information about actual time worked or time absent and use analytics to generate reports on any data related to working times, for example, to compare actual and planned working times. while payroll integration automates compensation of working times, hr per-so nnel can intervene manually – for exam-ple, to add overtime for an employee. in addition, you can manage leave balan-

mAnAGE pEoplE And tAlEntinTeGrATinG hr PrOceSSeS AnD DATA AcrOSS The BuSineSS


ces, such as vacation leave, using time accounts that you can configure as appropriate.

compensationwith SAP Business ByDesign, you can map your entire compensation pro cess, apply pay structures consistently across the company, and manage compensation more efficiently. To simplify management, the software provides preconfigured, country-specific compensation compo-nents – payments and deductions, for example – that you can adjust and add to as needed. Because you can create and enforce company-wide compensation structures for different employee groups, such as hourly, exempt, and nonexempt employees, it’s easier to control personnel costs. you can also define default values for each compensation grade to align salaries with your compensation guide-lines. At any time, you can access all compensation-relevant data for each employee.

PayrollSAP Business ByDesign lets you super-vise the transfer of payroll-related data from your software to an outsourced payroll system. The solution provides integrated payroll services that offer the control and visibility of an in-house payroll system, while giving you the benefits of outsourcing, such as lower costs, greater efficiency, and reduced liability risk. for example, the service provider performs payroll calculations and follow-on payroll activities, such as check printing, tax remittance, and reporting, which reduce your company’s administrative overhead and liability. however, you retain control by being able to preview the outcome of a payroll run and make changes before

employees’ checks are processed, prin-ted, and distributed. in addition, the soft-ware automatically detects payroll data errors and presents them to hr person-nel for review so that any errors can be addressed before payroll data is submit-ted to the service provider. This prevents costly payroll mistakes before they occur.

Employee Self-Service

The SAP Business ByDesign solution gives employees and managers conven-ient access to self-service functionality for completing hr tasks, such as chang-ing an address, recording time, and repor t- ing expenses. This frees up your hr, accounting, and purchasing staff to focus on value-added activities.

employee Self-Serviceswith SAP Business ByDesign, you can empower employees to update their per-so nal information, record working time, submit expenses for reimbursement, get help with the solution, and access perso-nalised e-learning modules – all without contacting hr or other personnel directly. An online company address book also enables them to search for other employ-ees and view their details.

management Self-ServicesSAP Business ByDesign enables your managers to perform approvals, run reports, and view information about their department, such as team calendar, bud-get, and project information. managers can perform self-service requests on behalf of their direct reports as well. for example, when employees are ill and want to use paid time off, they can call their manager to update their records accor d- ingly.

Compliance

with SAP Business ByDesign, you can define a hiring process that includes con-trols to enforce compliance requirements and limit opportunties for fraud– for exam-ple, by limiting permissions and data access rights. when you hire a new employee or transfer an existing one, the software uses your centralised organisa-tional data, for example, department and role information, to generate a full SAP Business ByDesign security profile for the employee. This proposal is routed to the appropriate manager and key user for verification and refinement. if your business goes global, SAP Business ByDesign makes it easier to oversee employees in other countries and facilitate compliance with local regulations.

Analytics

Analytics within SAP Business ByDesign gives you a comprehensive overview of your hr data and tools to analyse that data. you can view the number of people employed at the company at a specific time, as well as use headcount and full- time equivalents data to support capacity planning. you can view and analyse emplo yee salaries, working times, and turnover rates, as well as view the status of time accounts per employee, division, or reporting line unit.


SAP Business ByDesign provides power-ful project management functionality that is integrated with other business areas; data only has to be entered once, and it is automatically available to relevant ope-ra tional and financial areas. The software helps you optimise project efficiency, trans parency, and collaboration while supporting end-to-end project mana-gement.

Project Management

with SAP Business ByDesign, your project managers are free to plan and struc ture projects in a manner that works best for them. And they have instant access to the graphical tools and reports required to gain visibility, efficiency of execution, and ongoing control.

Project Planning and executionwith SAP Business ByDesign, you can plan, execute, and continually monitor projects of all types and sizes, from basic cost collectors to more sophisticated projects. Support for resource manage-ment makes it easier for project managers to staff projects, assign tasks, and track working times and task execution. The software supports collaboration among team members via shared document cen- t res, automated workflows, and diverse communication channels. integrated pur-chasing functions make it easy for project managers to request the materials and services required to complete a pro ject. And integration with hr can make work-ing times approved by project mana gers automatically available to your financial operations.

Throughout the project execution pro cess, project managers can monitor and verify project-related expenses submitted by team members. They can analyse the pro-gress of projects and track deviations from the initial project plan in terms of cost, time, and schedule. when required, they can make changes to project baselines and, if needed, route changes for mana-gement approval before activating them.

Accounting for ProjectsSAP Business ByDesign allows you to view reliable, up-to-date information about project-related costs incurred as a result of time recordings, travel expenses, and

other cost-related postings to project tasks. Time recordings for both employees and external ser vice providers can be tracked for each project. within project account-ing, you can post supplier invoices and record the consumption of materials for internal projects. The solution records the provision of internal services and the calculation of overheads for projects.

optimiSE projECt EFFiCiEnCyinTeGrATeD funcTiOnS ThAT Drive viSiBiLiTy AnD cOnTrOL

The software helps you optimise project efficiency, transparency, and collaboration while supporting end-to-end project management.



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Summary The SAP® Business ByDesign™ solution provides you with the most complete and adaptable on-demand business solution available for midsize companies today. it connects your operations, providing full and comprehensive visibility and control, while simultaneously enabling you to adapt and grow your organisation over time.

Challenges • Grow the business profitably – nationally and internationally• compete effectively against rivals and adapt appropriately to business change• increase efficiency, productivity, and overall business agility • Strengthen relationships with customers, suppliers, and business partners • make it easier and less costly to comply with regulations

Supported Business Processes and Software Functions• Financial management – integrate all business areas with financials for efficient financial

and management accounting, cash flow management, and compliance• Customer relationship management – unify operations across marketing, sales,

and service delivery for greater efficiency, effectiveness, and transparency• Supply chain management – establish end-to-end processes with efficient supply chain

setup; supply chain planning and control; and manufacturing, warehousing, and logistics• Supplier relationship management – use automation and end-to-end processes

to optimise sourcing and purchasing • Human resources management – integrate hr processes and data with other business

areas through centralised corporate organisational management, human resources manage-ment, and self-services

• Project management – use integrated project management functions for project planning, execution, and project accounting

Business Benefits • Greater efficiency, effectiveness, and business agility because employees, departments,

and partners can work collaboratively• 360-degree visibility and control enabled by automated, end-to-end process support

and centralised data• flexibility to change, grow, and easily extend the reach of the company • Greater confidence in compliance activities and reporting to authorities while adapting

to changing business conditions

For More InformationPlease contact your SAP representative or visit www.sap.com/solutions/sme/businessbydesign.

Documents

AdApt And Grow with SAp® Business Bydesign™ - · PDF file7 Payment and Liquidity management ... 4 SAP Functions in Detail – Adapt and Grow with SAP Business ByDesign. Summary