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 local rules 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

Sales Staff Acctg. Staff Prod Staff Assign Staff Order Entry Order Ship
Order Receipt

Order Parts
Order Schedule

Pay Staff Pay Parts

Invoice Order

Order Make

Receipt Order

HR

Sales

Prod

Acct

A Process View of the Business

Order Processing

Product Development Customer Service

Financial Reporting HR Sales Prod Acct

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

R/3 Applications BASIS R/3 Middleware

Systems Software Hardware

R/3 Middleware
Client server Uses underlying relational databases
Oracle SQL server Ingress Sybase

Its graphical user interface

Sap GUI

System Platforms
UNIX BOXES DEC ALPHA INTEL IBM AS 400
Hardware

UNIX: Most Variants

ADABAS, DB2 for AIX Informix

Windows NT

OS400

Operating Systems Databases

ORACLE

MS SQL Server

DB2/400

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

Win 95 OS/2

Dialog SAPGUI Languages

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

Presentation Servers

Varieties of Client Server

Name Centralized System 2 Tier System Mainframe with intelligent terminals 3 Tier System PC or NC High End Mainframe or Mini Workstation Presentation Application Database

Mainframe with terminals

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

R/3 Middleware: Interfaces to Systems Software

Presentation Database DB Interface

R/3
OS Interface Operating System

Pres Interface

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
CLIENT 000 (DELIVERY SYSTEM) CLIENT SPECIFIC CLIENT 001 (DELIVERY SYSTEM) CLIENT nnn (CUSTOMER COPY)

CROSSCLIENT

CROSS-CLIENT CUSTOMIZING REPOSITORY OBJECTS

Client
America Europe Japan Client 010 Client 020 Client 030

R/3 Europe R/3 America R/3 Japan

Client Copies
Configuration

Development Quality Assurance Interface Testing User Training

Summary
SAP R/3 is Client server 3 tier 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

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.

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