ERP SAP R/3 Overview

Last modified by: Bunty Jain – SAP ABAP, Delhi, India, IT SAP Training seekbuntyjain@gmail.com

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What Is R/3

The third generation set of highly-integrated software modules that perform common business function based on multi-national leading practices. Takes care of any enterprise however it may be in operations, spread over the world geographically.

R/3 – Product Scope

Key Modules

• Financial management– Financial (FI)– Cost accounting (CO)– Treasury management (TR)– Project management (PS)– Asset management (AS)

• Support applications– Human resource (HR)

• Manufacturing applications/logistics– Production planning (PP)– Quality management (QM)– Plant maintenance (PM) – Materials management (MM)– Sales and distribution (SD)

• Industry solutions (IS)• Work flow (WF)

Financial Management

• FI modules– General ledger (FI-GL)– Accounts receivable (FI-AR)– Accounts payable (FI-AP)– Legal consolidation (FI-LC)– Accounting information systems

• Treasury (TR)– Cash management– Funds management– Treasury management

• Cost accounting (CO)– Cost centre accounting– Cost distribution– Activity based accounting– Product cost accounting– Profitability analysis

Supports Automatic management and external reporting of all financial transactions in the system.

More Financial Management Modules

• Project management– Define project• Set project definition• Determine work breakdown structure• Develop project networks • Project cost planning• Capacity requirement planning

– Control project• Maintain project documentation• Project budget control

Logistics• The management of assets

– Asset management– Plant management

• Design and control of production– Production planning– Quality management– Sales and distribution

Asset Management

• Asset management– Control fixed assets– Maintenance and repair of assets– Purchase and sale of assets– Asset accounting• Depreciation• Asset replacement

– Investment management

Plant Maintenance Management

• Maintenance orders• Resource management• Maintenance history• Usage history• Maintenance as customer service

Production Planning• Sales and operations planning• Master planning• Materials requirements planning• Capacity requirements planning

• Production orders• Product costing• Process industry modules

Sales and Distribution

• Sales support– SD-CAS

• Sales– SD-SLS

• Shipping– SD-SHP

• Billing– SD-BIL

Materials Management

• Material requirement planning• Purchasing• Inventory management• Invoice verification• Warehouse management

Support Systems• Human resource management

– Time management– Personnel planning and

development– Workforce planning– Travel expenses

• Work flow– Models sequence of a business

process to ensure that the appropriate steps are carried out • At the right moment • By the right people

Must be tuned to localrules and conditions.

R/3 Is Integrated

• Common database• Common data dictionary• Application update flows to all related

systems– One point of data entry– Consistent data– Elimination of redundant data

• Consistent user interface

R/3 Is Flexible

• Can be customized to meet– Own business practices– Best business practices

• Allows interfaces to other systems• Allows for own report and screen generation• Runs on multiple hardware and database

platforms• Can be tailored

R/3 Supports the Business

• Complete business solution across all business functions

• Has solutions to most critical business processes (over 1000)

• Provides an enterprise wide solution– Support global business and accounting processes– Standardized business processes using best practice

models– Supports multiple business structures and multiple

business units

R/3 Reveals the Business

• Implementation requires – Statement of business rules– Clear model of business process• Work flow

– Opportunity to streamline decision making– Opportunity for business process reengineering

A Function View of the Business

ProdHR Sales Acct

Sales Staff

Prod Staff

Acctg. Staff

Assign Staff

Order Entry

Order Ship

Order Receipt

Order Parts

Order Schedule

Order Make

PayStaff

PayParts

InvoiceOrder

ReceiptOrder

A Process View of the Business

Prod

Customer Service

Financial Reporting

HR Sales Acct

Product Development

Order Processing

Implication for R/3 Implementation

• Requires process view• Requires answers to questions of work flow at

least• Positions the firm to undertake BPR (business

process re-engineering) or major modification to R/3

SAP R/3 - Summary

• Is a comprehensive suite of integrated applications meeting the needs of most enterprises in the common business processes.

• Covers – Financial management– Logistics– Human resource management

• Supports– Best practice through work flow analysis

The Technology of SAP R/3

Varieties

• R/2 is mainframe system• R/3 is client server system• R/3 may be two or three tiered client server– 3 tier is recommended

R/3 Architecture

Hardware

Systems Software

R/3 Middleware

BASIS

R/3 Applications

R/3 Middleware

• Client server• Uses underlying relational databases– Oracle– SQL server– Ingress– Sybase

• Its graphical user interface– Sap GUI

System Platforms

Languages

DialogSAPGUI

Databases

OperatingSystems

HardwareUNIX BOXES IBM AS 400INTELDEC ALPHA

UNIX: Most Variants

Windows NT OS400

ADABAS, DB2 for AIX

InformixDB2/400ORACLE

MS SQLServer

Win 3.1, Win 95, Win NT, OSF Motif, Presentation Manager, MacIntosh

Win ‘95OS/2

ABAP/4, C, C++

What Is 3-tiered?

• 3 functional areas– Presentation• Workstations

– Application logic• Small boxes

– Data management• Large box

Database Server

Application Servers

HR

Inte

rnet

FI

Presentation Servers

Varieties of Client Server

Name Presentation Application Database

Centralized System

2 Tier System

3 Tier System

NOTE: a truly distributed system may distribute the database; the processing of an application or processing of presentation calculations

Mainframe with terminals

Mainframe with intelligent terminals

Mainframe or MiniHigh End Workstation

PC or NC

R/3 Middleware: Interfaces to Systems Software

Database

OperatingSystem

Presentation

R/3DB

Inter-face

OS Interface

PresInter-face

Structure of an Application Server

Dispatching Dialog Steps

Structure of a Work Process

Client• In commercial, organizational & technical terms, a

client is a self-contained unit of R/3 system . clients have their own customizing facility , application data & user master records.

• Clients play a particular part in R/3 system • Sap distinguishes several clients which should be

distributed across at least 2 R/3 systems . each client has a different purpose :

Development / test : You use the development / test client for customizing

your activities & for developing your own repository objects . however ,all repository objects are available & can be changed in all clients .

Client….Quality assurance :Use the quality assurance client to test your customization. To reset quality assurance client after testing , sap recommends use of another client to hold test data.Training :This is meant for training project teams & end -users.Production :This receives the tested customizing settings & your repository objects . Sap recommends definition of no more than one production client .Standard delivery system comprises two identical clients. Both contain same customizing settings , but no application data. Client 000 is sap”s standard client which is modified by each sap upgrade . This client should not be changed in any way . Perform the customizations in client 001 .

Client……

CROSS-CLIENT CUSTOMIZING

REPOSITORY OBJECTS

CLIENTSPECIFIC

CROSS-CLIENT

CLIENT 000(DELIVERY SYSTEM)

CLIENT 001(DELIVERY SYSTEM)

CLIENT nnn(CUSTOMERCOPY)

Client……

R/3America

R/3Europe

R/3Japan

America Client 010America Client 010

Japan Client 030Japan Client 030

Europe Client 020Europe Client 020

Client Copies

Configuration

Development

Interface TestingQuality Assurance

User Training

Summary• SAP R/3 is

– Client server• 3 tier– Presentation– Application– Database

– Relatively hardware and database independent

• ABAP/4 applications runs on application servers.

• Dispatcher, shared memory, gateway, work processes are major components of an application server.

• SAP R/3 offers– Comprehensive suite of

integrated applications meeting the needs of most business

– Best practice process design– Ability to configure to

• Industry sector• Unique business

requirements

Your Role• Modify R/3 to suit organization’s business processes• Modify R/3 to meet organization mid-way• Even if the entire business practice is adopted:

– New reports/transactions– Modify reports/transactions– Aggregation of functions

End

Last modified by: Bunty Jain – SAP ABAP, Delhi, India, IT SAP Training seekbuntyjain@gmail.com