Workshop on

Introduction to
SAP ERP ECC 6.0
USING SAP IDES VERSION

By: BADRUDDIN KHAN, ACMA

Workshop Contents
• WHAT IS AN ERP AND WHY IT IS REQUIRED?
• EVOLUTION / HISTORY OF ERP
• TYPES OF ERP SYSTEMS IN MARKET
• ADVANTAGES AND DISADVANTAGES OF ERP SYSTEMS
• HISTORY OF SAP ERP
• SAP IN PAKISTAN AND SAP PARTNER / CONSULTANTS
• ARCHITECTURE OF SAP (TECHNICAL AND LANDSCAPE)
• WHAT IS MYSAP AND NET WEAVER?
• MODULES OF SAP ERP
• ASAP METHODOLOGY
• SAP BASIS
• FINANCIAL AND MATERIAL MANAGEMENT MODULES
• HANDS-ON TRAINING USING SAP ECC 6.0
What is an ERP and
why it is required?
TYPICAL BUSINESS HUMAN
PROCESS RESOURCE
INVENTORY

SALES DEPTT. PRODUCTION

PLANNING FINANCE

PRODUCTION
PLANT SUPPLIER
CUSTOMER
What is an ERP and why it is
required?
 ERP STANDS FOR ENTERPRISE RESOURCE PLANNING
 INTEGRATES ALL BUSINESS PROCESS (FINANCE, HR, SALES, INVENTORY,
PRODUCTION, ETC)
 CATERS THE NEED OF EVERY BUSINESS UNIT
 REPLACES DE-CENTRALIZED/ SEPERATE SYSTEMS
 RETREIVE OF REAL-TIME INFORMATION
 STREAM-LINE/IMPROVEMENT IN PROCESSES
 REDUCTION IN COST/OVERHEADS
 HELPS TO BETTER DECISION MAKING
Evolution / History of ERP
 In 1960s – Inventory Management Control
 Maintains level of stock and set targets
 In 1970s – Material Requirement Planning (MRP-I)
 Scheduling Raw Material Purchases & Scheduling production process
 In 1980s – Manufacturing Resource Planning (MRP-II)
 Coordinating Manufacture Processes /Product Planning/ Parts Planning / Product
Distribution
 In 1990s – Enterprise Resource Planning
 Integration of all Business Process including
Manufacturing process
 In 2000s – Extended ERP ( ERP+SCM+CRM+SRM)
SAP IN PAKISTAN AND SAP PARTNER /
CONSULTANTS
 COMPANIES USING SAP:
1. Fauji Fertilizer Company Ltd
2. Archroma Pakistan Ltd
3. Byco Petroleum Pakistan Ltd
4. GlaxoSmithKline Pakistan Ltd
5. Habib Bank Ltd
6. Nestle Pakistan Ltd
7. National Refinery Limited
8. General Tyre
9. Getz Pharma
SAP IN PAKISTAN AND SAP
PARTNER / CONSULTANTS
 SAP CONSULTING FIRMS/ PARTNER IN PAKISTAN:
1. Siemens Pakistan Engineering Co. Ltd.
2. Abacus Consulting Technology Pvt Ltd
3. Tallymarks Consulting
4. IBL-Unisys (Pvt.) Ltd.
5. IBM Pakistan
6. Excellence Delivered ExD Pvt. Ltd
TYPES OF ERP SYSTEMS IN MARKET
 SAP ERP (ECC & Business One)

 Microsoft Dynamics (NAV and AX)

 Oracle E-Business Suite Financials (Targeted to the financial

services industry)

 PeopleSoft Enterprise (Oracle Based-Support complex business

requirements)

 JD Edwards Enterprise One (Oracle-based ERP)

ADVANTAGES AND DISADVANTAGES OF
ERP SYSTEM
ADVANTAGES DISADVANTAGES
(OUTCOMES) (CHALLENGES)
BUSINESS PROCESS CAN BE VIEWED ON HIGH COST SOFTWARES
REAL-TIME BASIS

REDUCES REDUNDANT DATA AND PLANNING / IMPLEMENTATION PHASE

DUPLICAITION OF WORK IS LENGTHY

CENTRALIZED AND COST –EFFECTIVE HIGH LEVEL OF CUSTOMIZATION

DATA SHARING REQUIRED

HELPS IN DECISION MAKING & COSTLY IT INFRA-STRUCTIURE &

CUSTOMER SATISFACTION DATA MIGRATION
HISTORY OF SAP ERP
 SAP stands for Systems Applications and Products in Data Processing.
 SAP AG was Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner
and Tschira. Former employees of IBM.
 SAP has issued several releases, such as SAP R/1, SAP R/2, and SAP R/3.
 R in these releases stands for “Real-Time” data processing.
 The numeric represents the number of layers.
 R/1 and R/2 were launched in 1973 & 1979, respectively.
 SAP R/3 version was released in 1992
 SAP ERP Central Component (ECC) 6.0 was released in 2005.
Continuation of R/3 architecture.
ARCHITECTURE OF SAP
(TECHNICAL AND LANDSCAPE)
 THREE-TIER ARCHITECTURE / TECHNICAL ARCHITECTURE CONTAINS:
1- PRESENTATION LAYER:
 Also known as client Layer
 User Interactive Screen
 SAP GUI (Graphical User Interface) is used to interact SAP R/3
 Using HTTP Protocol Web browser can also be used
 It is installed on every User PC.
2- APPLICATION LAYER:
 It is the Basic Layer/ Kernel layer
 SAP Programs are executed on this level.
 Serves as Communicator between Presentation and Database Layer.
 Dispatcher and Work Process perform here to distribute load and perform task.
 Installed on Separate Server, NOT ON THE END-USER PC.
ARCHITECTURE OF SAP
(TECHNICAL AND LANDSCAPE)
 THREE-TIER ARCHITECTURE / TECHNICAL ARCHITECTURE CONTAINS:
3- DATABASE LAYER:
 Here Database server exist and stores / retrieves data
 Business data, SAP system data, SAP tables, Programs.
 Oracle, Microsoft SQL Server, IBM DB/2, Oracle, Etc.
ARCHITECTURE OF SAP
(TECHNICAL AND LANDSCAPE)
 LANDSCAPE ARCHITECTURE
WHAT IS MYSAP AND NET WEAVER?
 mySAP is not a single product but is a suite of products.
 Includes:
 SAP Enterprise Resource Planning (ERP)
 Customer Relationship Management (CRM)
 Supplier Relationship Management (SRM),
 Supply Chain Management (SCM),
 Product Life-Cycle (PLM)
 NET WEAVER
 SAP Net Weaver is a technology.
 Technical foundation & Integration platform for mySAP products
 Helps to use all products of mySAP on single instance
 New name for SAP BASIS
MODULES OF SAP ERP
 Functional SAP ERP Modules
 Human Resource Management (SAP HRM)
 Production Planning (SAP PP)
 Material Management (SAP MM)
 Sales and Distribution (SAP SD)
 Project System (SAP PS)
 Financial Accounting and Controlling (SAP FICO)
 Plant Maintenance (SAP PM)
 Quality Management (SAP QM)
 Technical SAP ERP Module
 SAP Basis / SAP NetWeaver
 Advanced Business Application Programming (SAP ABAP)
 High Performance Analytic Appliance (SAP HANA)
ASAP METHODOLOGY
 ASAP stands for Accelerated SAP
 Purpose is to design SAP implementation in the most efficient manner
 Effectively optimize time, people, quality and other resources.
 Phase of ASAP Methodology:-
1- Project Preparation
2- Business Blueprint
3- Realization
4- Final Preparation
5- Go-Live and
6- Post Go-Live Support
ASAP METHODOLOGY
SAP BASIS
 Technical foundation that enables SAP applications to function.
 SAP BASIS ADMINISTRATOR is responsible for;
 All users have the proper access rights and authorized functions.
 Installing and configuring all SAP systems (ERP / GUI)
 Backing up and restoring data
 Running and managing background jobs
 Configuring TRANSPORT MANAGEMENT SYSTEM (TMS)
 Installing and configuring printers and other devices
FINANCIAL MODULE
CUSTOMER MASTER DATA
CREDIT MANAGEMENT
SALES INVOICE ACCOUNTS
INCOMING RECEIPTS RECEIVABLE

BANK MASTAR DATA

BANK RECONCILIATION
MAINTAINING STATEMENT
INWARD/OUTWARD CHEQUE
ASSET GENERAL BANK
ACCOUNTING LEDGER ACCOUNTING
ASSET ACCOUNTS
ASSET AQUSITION
ASSET DISPOSAL/ TRANSFER
ASSET DEPRICIATION
ASSET RE-VALUATION

ACCOUNTS
PAYABLE VENDOR MASTER DATA
CHART OF ACCOUNTS INVOICE PROCESSING
G/L ACCOUNTS PAYMENTS
DEFINING/ OPENING/ CLOSING POSTING PERIOD IMPLICATION OF TAXES
DOCUMENT TYPES AND NUMBER RANGES
FINANCIAL STATEMENTS VERSION
MATERIAL MANAGEMENT MODULE
•PROCUREMENT PROPOSAL •ONE STORAGE LOCATION TO
FROM MRP ANOTHER STORAGE
•PURCHASE REQUISITION •RECEIPT FROM PURCHASE
•PURCHASE ORDER ORDER
•GOODS RECEIPT •ISSUED FOR DELIVERY
•INVOICE RECEIPT •RETURNED BACK FROM
PRODUCTION DEPARTMENT

PURCHASING INVENTORY

MATERIAL
MASTER DATA RESOURCE
PLANNING
(MRP)
•MATERIAL MASTER DATA •CONSUMPTION BASED
PLANNING