How to grow the business How to satisfy customers How to out compete rivals How to respond to changing in market conditions How to manage each functional piece of the business
and develop needed organizational capabilities How to achieve strategic and financial objectives
What is ERP?
ERP integrates the information across functions, and
provides a set of tools for planning and monitoring the various functions and processes and ensuring progress towards a common purpose A business management system that integrates all facets of the business, including planning, manufacturing, sales, and marketing. ERP helps business managers to implement ERP in business activities such as inventory control, order tracking, customer service, finance and human resources
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What is an ERP?
An Enterprise Resource Planning system is a packaged business software system that allows a company to: Automate and integrate the majority of its business processes Share common data and practices across the entire enterprise Produce and access information in a real-time environment
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MRPII Elements
Trends Reports objective Demand management (Sales forecasting) Strategic management & Business plan Master production scheduling MRP : -BOM -Lead Time -Lot sizing plan Resource requirement planning Resource req.
Inventory Transaction
Inventory level
report
Capacity req. Planning(CRP)
Realistic
Realistic
Factory coordination
Supplier
In 1972 five engineers in Mannheim, Germany, started up SAP (Systemanalyse und Programmentwicklung). The purpose of the company was to produce and market standard software for integrated business solutions.
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si n es c s ro rt p n g e Pa cha
p Acce
t or n
ot.
Production planning
Ac tio
np
lan
Supplier performance
En g Ch ineer an ing ge s
R&D
Q.A
Q.C
i
Purchasing
de Or
rs
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Major Types of Systems Executive Support Systems (ESS) Decision Support Systems (DSS) Management Information Systems (MIS) Knowledge Work Systems (KWS) Office Automation Systems (OAS) Transaction Processing Systems (TPS)
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Payroll TPS
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(MIS)
With out any Integrated system
(ESS)
(KWS)
(TPS)
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Order management
MM (Materials Management
Procurement
Production Planning and scheduling actual production Product inspections ,material certifications ,quality control Preventive maintenance, resource management Recruiting, hiring training ,payroll ,benefits
PP (production planning )
Manufacturing
Manufacturing Management
QM (quality Management)
Technical Foundation
PM (plant Maintenance)
Service
HR (Human Resources
Human Resources
Workforce Management
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CO (Controlling)
Asset Management
Projects
Contracts
WF (Workflow)
Best practices
IS (Industry Solutions)
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What is SAP? World Leader in enterprise business software solutions Largest ERP vendor More than 2,500,000 users in over 50 countries An average of 25% of revenue invested in R&D High customer and employee satisfaction
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SAP
Systeme, Anwendungen und Produkte in der Datenverarbeitung (English: Systems, Applications, and Products in Data Processing) Global concern with many companies SAP AG SAP America SAP UK SAP Business Suite SAP Enterprise Resource Planning (SAP ERP) SAP Supplier Relationship Management (SAP SRM) SAP Customer Relationship Planning (SAP CRM) SAP Supply Chain Management (SAP SCM) SAP Product Lifecycle Management (SAP PLM) 28 SAP NetWeaver
Who is SAP?
SAP AG Founded in Walldorf, Germany in 1972 Worlds Largest Business Software Company Worlds Third-largest Independent Software Provider Company Statistics Over 40,000 employees in more then 50 countries 1500 Business Partners 36,200 customers in more then 120 countries 12 million users 100,600 installations Source: SAP AG website
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Why SAP is Unique? Highly integrated Comprehensive functionality Complex data structures Availability of data Single point of entry On-line data capture and real-time update Requires strong application knowledge Causes personnel and organizational structure changes Causes business process changes
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Real-time Available to Promise & scheduling. Multi-national and multi-site distribution Integration with financial module MRP or Kanban logic Configurable BOM (by order) Engineering change control (date oriented) Backflush for raw and in-process stocking locations Interactive planning function Operations splitting and overlapping
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Process Improvements Eliminate redundant transactions and multiple reconciliations. More efficient job rotation process More efficient staff and succession planning Information Technology Reduced support costs. Reduced infrastructure costs. Strategic Direction Improved resource allocation More flexible organization. Better future decision making Related initiatives Better focus, reduced spending 33
introduced in 1972 SAP R/3 introduced for smaller platforms in 1992 Developed using a fourth generation proprietary language developed by SAP called ABAP/4 Major SAP versions: 2.2h 3.0d, 3.0e, 3.0f , 3.1g, 3.1h, 3,1i 4.0b, 4.5b, 4.6b, 4.6c, 4.7 5.0, 6.0
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Server
Software/hardware combination that can provide services to a group of clients in a controlled environment
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On-line system with no batch interfaces. One single database for all corporate data, without any
redundancy. Clear definition of a data model documented in a data dictionary. Software functionality configurable to different customers needs. Client/server architecture. Best practice and standardised business processes.
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Integrated Business Solution Vendors SAP (Systems, Applications, & Products in Data
Processing) SAP ERP, All-in-One, Business by Design, Business One Oracle Applications Oracle, JD Edwards, PeopleSoft, Siebel, Retek Microsoft Business Solutions Dynamics: Great Plains, Navision, Axapta, Soloman The Sage Group Sage Software Accpac ERP, PeachTree SSA Global Technologies BAAN
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SAP Architecture
World-wide usage Designed to satisfy the information needs for business
sizes (small local to large all international) Multi-lingual Multi-currency Designed to satisfy the information needs for all industries
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SAP ERP
Enables a company to link its business processes Ties together disparate business functions (integrated
business solution) Helps the organization run smoothly Real-time environment Scalable and flexible
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SAP Architecture
Three Tier Structure GUI Graphical User Interface or Web Interface Application Server One or more, help distribute work load Database Server One single data repository
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SAP Architecture
PCs, Laptops, etc. Browser Client
Network
Web Server
Application Servers
Database
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SAP PLM
SAP SRM
SAP CRM
SAP SCM
SAP NetWeaver
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SD
FI CO SAP PLM
MM
PP
SAP R/3
QM PM Client/Server ABAP Basis HR IS WF
AM PS
SAP SRM
SAP ECC
SAP SCM
SAP CRM
SAP NetWeaver
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SAP Modules
The following are the SAP Functional Modules Apart for ABAP and Basis
FI Financial Accounting
Designed for automated management and external reporting of general ledger, accounts receivable, accounts payable and other sub-ledger accounts with a user defined chart of accounts. As entries are made relating to sales production and payments journal entries are automatically posted. This connection means that the "books" are designed to reflect the real situation. The FI module has 8 sub modules:
FI-GL General Ledger Accounting FI-LC Consolidation FI-AP Accounts Payable FI-AR Accounts Receivable FI-CA Contract Accounting
FI-BL Bank Accounting FI-AA Asset Accounting FI-SL Special Purpose Ledger FI-FM Funds Management
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SAP Modules
CO Controlling
Represents the company's flow of cost and revenue. It is a management instrument for organizational decisions. It too is automatically updated as events occur. The CO module has following sub modules:
CO-OM Overhead Costing (Cost Centers, Activity Based Costing, Internal Order Costing) CO-PA Profitability Analysis CO-PC Product Cost Controlling
AM Asset Management
Designed to manage and supervise individual aspects of fixed assets including purchase and sale of assets, depreciation and investment management.
PS Project System
Designed to support the planning, control and monitoring of long-term, highly complex 49 projects with defined goals.
SAP Modules
HR Human Resources
Complete integrated system for supporting the planning and control of personnel activities and HR module is sometimes equivalently referred to as HCM (Human Capital Management).
HR-OM Organizational Management HR-PA Personnel Administration HR-PB Recruitment HR-PD Personnel Development HR-PT Time Management HCM Human Capital Management
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SAP Modules
MM Materials Management
Supports the procurement and inventory functions occurring in day-to-day business operations such as purchasing, inventory management, reorder point processing, etc.
PP Production Planning
Used to plan and control the manufacturing activities of a company. This module includes; bills of material, routings, work centers, sales and operations planning, master production scheduling, material requirements planning, shop floor control, production orders, product costing, etc.
PP-PI
Production Planning Process Industries. With the component PP-PI (Production Planning for Process Industries), SAP provides an integrated planning tool for batch-oriented process manufacturing. It has been developed in cooperation with IDS Prof. Scheer GmbH, Saarbrcken. It is primarily designed for the chemical, pharmaceutical, food and beverage industries as well as the batch-oriented electronics industry.
PP-PI supports:
The integrated planning of production, waste disposal, and transport activities within a plant The integration of plants within the company: Vertically by means of an information flow, ranging from central business applications down to process control Horizontally by the coordination of planning between production plants, recycling and waste disposal facilities, and production laboratories. 51
SAP Modules
PM Plant Maintenance
Equipment servicing and rebuilding. These tasks affect the production plans.
QM Quality Management
A quality control and information system supporting quality planning, inspection, and control for manufacturing and procurement.
WM Warehouse Management
Subdivides the "Storage Location", which is used in the MM Module to define inventory values by location, into "Storage Types" and then into "Storage Bins". Control of stock to a physical level down to a warehouse bin. Placement and removal rules can be configured, stock counts can be done.
Helps to optimize all the tasks and activities carried out in sales, delivery and billing. Key elements are: presales support, inquiry processing, quotation processing, sales order processing, delivery processing, billing and sales information system.
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SAP Modules
Designed for the management of environmental regulatory information, particularly product safety data as required for Material Safety Data Sheets. EH&S has sub-modules of Product Safety, Dangerous Goods, Waste, Industrial Hygiene, and Occupational Health.
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SAP Modules
SAP Modules
IS Industry Solutions
Combines the SAP application modules and additional industry-specific functionality. Special techniques have been developed for industries such as banking, oil and gas, pharmaceuticals, etc. As of Feb 2006, following Industry Specific Solutions are supported by SAP:
IS-A Automotive IS-ADEC Aerospace and Defense IS-AFS Apparel and Footwear IS-B Banking IS-BEV Beverage IS-CWM Catch Weight Management (Variable Weight Items such as Meats and Cheeses)
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SAP Modules
IS-DFS Defense and Security IS-H Hospital IS-HER Higher Education IS-HSS Hospitality Management IS-HT High tech IS-M Media IS-MIN Mining IS-MP Milling (or IS-MILL) IS-OIL Oil
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SAP Modules
IS-PS Public Sector IS-R Retail IS-REA Recycling Admin IS-SP Service Provider IS-T Telecommunications IS-U Utilities IS-U Supplier Switch Utilities IS-U EDM Utilities IS-U EDM Billing Utilities IS-U Aggregated Billing Utilities IS-U /BW Utilities
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SAP Modules
FS Insurance
An integral part of mySAP ERP, SAP for Insurance enables insurance companies to handle customer and market requirements and simultaneously control profitability and economic viability. In Release 6.00, SAP for Insurance includes the following components:
FS-CD Collections and disbursements FS-CM Claims management FS-CS Commissions management FS-PM Policy management FS-RI Reinsurance management FS-PE Payment Engine (Banking Payments Solution still in development)
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Packaged Software
Traditionally focused on isolated business functions
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Customization
Desire is to minimize customization Best practices built-in already Unique requirements may exist
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Integration
Standardize data so all functions can access it in real time
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Upgrading Packages
Upgrades can be challenging Frequency Existing level of customization Integration
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Pre-ERP
Application-specific systems Incremental design Separate information systems built over long period of
time Each system supports discrete business process (e.g., manufacturing, finance, sales) Suppliers and customers rarely part of the information system picture
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Pre-ERP
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Pre-ERP
Application-specific systems An illustration of associated problems Under application-specific systems, each business
unit was well served, but important data would vary dramatically among divisions Sales would use its system to project sales; Logistics planning group would use manufacturing system to decide how much product to make and how to schedule production Each area would think overtly or covertly that the other areas numbers werent any good There was no trust between the divisions
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What is ERP?
Configurable information system that integrates
applications in accounting, sales, manufacturing, and other functions Integration is accomplished through a single (HUGE) database shared by all the applications Designed to support global operations Multiple languages and currencies
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What is ERP?
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the other way around) Boeing: Most difficult and time-consuming and expensive aspect of the project was creation of a bridge between PeopleSoft HR system and our legacy payroll systems In hindsight, they believe they should have forced the payroll process to move to PeopleSoft and eliminated those legacy systems
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areas, is crucial A-Busch recommends placing a BUSINESS leader in charge, not MIS, so project leadership comes from the business perspective Leader needs to communicate vision, maintain motivation, fight political battles, and remain influential with all stakeholders
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So . . .
Which installation method is likely most recommended in
ERP implementations? Big-bang Parallel Phased
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Overview of SAP R/3 Pronounced Ess Ay Pee SAP is the company, R/3 is the product SAP stands for Systems, Applications, and Products R stands for Real-time system 3 represents client/server (vs. R/2 mainframe
version)
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product Real-time information Single integrated database Business groups work with SAME data in REAL TIME
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IS Development View of SAP R/3 4 ways to adapt SAP R/3 to a company What is ABAP? Recommended R/3 development landscape
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compare your version of modified objects with new SAP version -- and deal with the associated issues DONT DO IT
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4 Ways to Adapt SAP R/3 Enhancements Customer additions and changes to R/3 objects that
are not modifications SAP programs have user exits designed into them at points where they have found customers may want to branch to additional specialized logic
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4 Ways to Adapt SAP R/3 Customer Development R/3 contains a customer namespace where you can
create your own objects (e.g., additional tables, report programs, dialogs, transactions, etc.)
Configuration and Customer Development Textbook use of term Enhancements would encompass both 3 and 4 here
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What is ABAP? The ABAP Language Pronounced ah-bop Advanced Business Application Programming All SAP functional modules are written in ABAP Only SAP and SAP customers use the ABAP language
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What is ABAP? The ABAP Language (continued) Supports event-driven logic Uses Open SQL (subset of ANSI SQL) Is multilingual: Text on screens/reports (e.g., titles, headers) stored
separately from the program code User settings indicate which language the text should be displayed in Special date, time, currency fields are incorporated in the language functionality to support global logic Conversions are done automatically
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programmers to: Provide extended functionality that cant be implemented by Configuration specialized reports additional screens, dialogs, tables additional transactions modules to execute at user exits Of course, the SAP company and SAP consulting firms also need ABAP programmers
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core functional areas: Financial Human Resources Logistics Special software packages on top of R/3, targeted to specialized vertical industries: Industry Solutions (IS) Special set of modules positioned between the technical and functional areas of the system: Cross Application (CA) Modules Workflow (WF) 86
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Financial Accounting
FI
General Ledger Accounts Receivable Accounts Payable Tax and Financial Reports Special Purpose Ledgers Legal Consolidations
Financial Applications. . . . . . . .
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Controlling
CO
Cost Center Accounting Profit Center Accounting Product Cost Controlling Profitability Analysis Activity Cost Management Internal Orders
Financial Applications. . . . . . . .
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AM
Financial Applications. . . . . . . .
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Project System
PS
Project Tracking Work Breakdown Structure Budget Management Cost and Revenue Planning Networks and Resources
Financial Applications. . . . . . . .
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SD
Computer Aided Sales Quotations Sales Order Management Pricing Delivery Invoicing
Logistics Applications . . . . . . . .
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Materials Management
MM
Logistics Applications . . . . . . . .
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Production Planning
PP
Sales & Operations Planning Demand Management Material Requirements Planning Production Activity Control Capacity Planning
Logistics Applications . . . . . . . .
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Quality Management
QM
Quality Certificates Inspection Processing Planning Tools Quality Control Quality Notifications
Logistics Applications . . . . . . . .
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PM
Logistics Applications . . . . . . . .
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Human Resources Personnel Administration Payroll, Benefits Time Management Planning and Development Organization Management
HR
Human Resources. . . . . . . .
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Industry Solutions Banks Hospitals Oil Companies Publishing Sector Telecommunications Retail Utilities Others
IS
Industry Solutions. . . . . . . .
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Unit Overview
Global Bike Group Organizational Structure Products Business Partners Business Processes
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Human Resources sells products and brings in money Peter is responsible for Research, Design, Procurement, and Manufacturing Groups builds products and spends money World-class bicycle company serving both the professional and prosumer in touring and off-road racing. Focus on: Quality *Toughness *Performance
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Companies
Dallas
Miami
San Diego
Heidelberg
Hamburg
Locations
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Products
Trading Goods Accessories Safety Gear Other
Raw Materials
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Products
Semi-Finished Goods
Finished Goods Touring Bikes (Deluxe, Professional) in three colors Off-Road Bikes (Men, Women)
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Business Partners
Customers (US and Germany)
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Business Partners
Vendors (US and Germany)
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Business Processes
Sell Fulfillment Buy Procurement Make Production Track Financial Accounting Track Controlling People Human Capital Management Store Inventory and Warehouse Management Plan Material Planning Maintain Enterprise Asset Management Service Customer Service
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Cross-functional Integration
Source Unknown
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Process Integration Order-to-Cash Process Sales and Distribution (SD) Materials Management (MM) Financial Accounting (FI)
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Process Integration Procure-to-Cash Process Materials Management (MM) Financial Accounting (FI)
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Navigation
Abstract Author Stefan Weidner This material explains how to navigate in SAP systems. It is aimed at students at universities, universities of applied sciences and other educational institutions with no previous experience of SAP software. It can be used in the classroom or for self-study.
Version
2.01
navigate through the user interface to deal with business processes and case studies.
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Content User guidance User specific settings Navigation in SAP Easy Access Menu Help
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Learning Targets
At the end of this chapter you can name the window elements, navigate in an SAP system, apply personal system settings, effectively use help.
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Old Design
Initial screen
Header data
Position overview
Position details
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New Design
Header data
Position overview
Position details
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Help Functions
F1: Description of input fields
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http://help.sap.com
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Favorites
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Transaction Codes
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Transaction SEARCH_SAP_MENU
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Transaction ICON
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Multiple Selection
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Desktop Shortcut
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Summary
You are now able to: name the window elements, navigate in an SAP system, apply personal system settings, effectively use help.
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