Introduction to ERP Introduction to SAP Configuration Aspects - SAP FI Module. Configuration Aspects - SAP CO Module Career Planning in SAP.

What is ERP? ERP is Enterprise Resource Planning ERP automates the tasks involved in performing a business process. ERP enables planning of all the resources (Men, Machine, Materials and Money) in an organization

ERP products available in the Market are 1. SAP 2. ORACLE APPLICATIONS 3. JDEDWARDS 4. BAAN 5. PEOPLE SOFT etc. SAP is having a market share of over 65%.
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SAP is a leading ERP Package. SAP enables an enterprise to undertake its day to day and long term activities in an effective and efficient way. Use of this package makes it possible to track and manage, in real-time, sales, production, finance accounting and human resource activities in an enterprise.
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SAP is both the name of the Company as well as their ERP Product. SAP system comprises of a number of fully integrated modules, which covers virtually every aspect of the business

SAP Systems Applications and Products in Data Processing.

Brief History:

Sales

Finance accounts

Inventory

SAP

Purchasing

Production Planning

Since all the modules are integrated data gets automatically updated with SAP

SAP Conceptual Areas

Application Area
(Initiate and execute SAP transactions) (Functional)

Basis Area
(The technical administration of the system)

Development Area
(1. A developers workbench 2. Create & Test ABAP/4 programs) (Technical)

(Authorizations/Ids/etc)

SAP Application Modules

Controlling (CO)
Materials management (MM) Sales and Distribution (SD) Production Planning (PP) Quality management (QM) Plant maintenance (PM) & Customer Service (CS) Project system (PS) Human resources (HR)
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INTRODUCTION TO FI MODULE
Key elements Of FI Module
General ledger

Accounts payable Sub ledger

Asset Management Sub ledger

INTRODUCTION TO FI MODULE
FI Module is needed to generate P&L A/C and Balance sheet of a firm. In order to generate the financial statements transactions are recorded in the general ledger

GENERAL LEDGER
All the activities needed to post a transaction are undertaken. Preparation of Chart of Accounts. Creation of General Ledger Accounts. Posting of a transaction. Generation of reports.
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ACCOUNTS PAYABLES:
Activities related to purchase of Raw Materials and purchase of other items on credit are recorded in this module. Accounts payable in SAP is treated as a sub-ledger. A G/L account Sundry creditors is maintained at the G/L Level. At the Sub- ledger level a record Vendor Master is created. All transactions are posted to sub-ledger. Transactions posted to the sub-ledger are maintained at two levels- one in the sub-ledger and the same data gets transferred to the General ledger .

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SUB LEDGER

Accounts payable

VENDOR MASTER

VENDOR X

VENDOR Y

GENERAL LEDGER SUNDRY CREDITORS RAW MATERIAL

Consolidation

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ACCOUNTS RECEIVABLES:

Activities related to sale of finished goods and sale of other items on credit are recorded in this module. Accounts Receivable in SAP is treated as a sub-ledger. A G/L account Sundry debtors is maintained at the G/L Level. At the Sub- ledger level a record Customer Master is created. All transactions are posted to sub-ledger. Transactions posted to the sub-ledger are maintained at two levels- one in the sub-ledger and the same data gets transferred to the General ledger .
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SUB LEDGER

Accounts RECEIVABLE

CUSTOMER MASTER

CUSTOMER X

CUSTOMER Y GENERAL LEDGER

SUNDRY DEBTORS SALES

Consolidation

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Activities related to purchase ,sale, transfer and scraping of fixed assets are undertaken in this module. Lifecycle of a fixed asset becomes a part of Asset accounting. Asset Accounting is treated as a sub-ledger in SAP. At the Sub-ledger level Asset Master is created to record every asset separately. Asset class is created to know the total value of the assets. Asset Master is linked to the Asset class. All transactions are posted to the Asset master.
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ASSET CLASS

Asset Class is linked To the asset master

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Data flow in Controlling will be from FI The module is needed for Internal management reporting CO Reporting Reports by cost centers. Orders and Projects. Budget/plan. Actual vs. plan. Reporting the variances. Taking corrective action.
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Represents the flow of cost and revenue

Instrument for organizational decisions

Cost center accounting - provides information on the costs

finance or HR departments employees, Travelling expenses

Internal Orders - Provide a means of tracking costs of a specific job, service, or task. E.g Marketing department wants to find out the cost incurred for conducting an advertising campaign. Profit center accounting - A profit center will have revenues as well as costs. For a profit center we will be booking the revenues as well as costs and do the result analysis for the respective profit center.
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Profitability analysis It will enable A Grp to analyze the profitability of market segments according to the following characteristics: Products Customers Sales Districts (i.e. USA West, USA East, Saudi Arabia etc.) Others. E.g Sale of a product in specific area for a specific time period. Integration of FI-MM and FI-SD

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After completing the course, one can be1. Functional Consultant. 2. Support Consultant 3. End User

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Functional Consultant in an End To End Implementation Project

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1. 2. 3.

Functional consultant is expected to have knowledge about the current business process. He is expected to design current business flows into SAP . His main task will be to customize the respective business processes.

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1.

2.
3.

The main job of the support consultant is to provide assistance to the customer or the organization where SAP is already implemented Primarily responsible for solving the problems of end users. When a problem arises the support consultant has to diagnose, analyze and solve the issue
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1.

2. 3.

End user will be using the ERP Software implemented in the Organization. His role is restricted to data entry. He undertakes activities like passing the JVs, entering the data related to invoices etc.

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