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Systems, Applications and Products in Data Processing
What is SAP? Thousands of mid to large size companies worldwide use SAP software to run the majority of their day-today business transactions and processes. Called an enterprise system, or ERP (Enterprise Resource Planning) solution, it can literally run an entire enterprise. Companies can run SAP's transactions to support their Order to Cash, Procure to Pay, Plan to Produce, Hire to Retire business processes, and much, much more!

Introduction to SAP
Introduction to SAP the Company Five former IBM employees founded SAP in 1972 in Germany. The vision was to develop standard application software for real-time business processing. The first releases, called R1 and R2, were mainframe-only applications. SAP started with a set of Financial applications and then added logistics, manufacturing, and HR. In the 1980s, they moved to a true 3-tiered client-server solution and by the early 1990s, R/3 was released to the market. Introduction to SAP the Software

In 2000, SAP renamed their solution mySAP and released the latest version of SAP, ECC or Enterprise Core Component, and the most recent release is ECC 6.0. SAP's current release strategy is to provide Enhancement Packs with additional functionality instead of releasing new versions of the software. SAP's Enhancement Pack strategy eliminates major upgrades and allows customers to choose which enhancements to apply to their systems. SAP Module Introduction

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Financial Accounting (FI) Financial Supply Chain Management (FSCM) Controlling (CO) Materials Management (MM)

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Sales and Distribution (SD) Logistics Execution (LE) Production Planning (PP) Quality Management (QM) Plant Maintenance (PM) Project System (PS) Human Resources (HR)

SAP Financial Accounting (SAP FI)

The Financial Accounting (SAP FI) module in SAP is designed to capture organizations business transactions in a manner that will satisfy external reporting requirements. Local legal considerations are pre-delivered with the system and the ability to manage and report on multiple companies in multiple countries with multiple currencies is part of standard functionality. Integration with Sales and Distribution, Purchasing and Materials Management allows for the ability to select any financial transaction and "Drill Down" to the originating transaction whether it is a purchase Order, Sales Order or material movement. Financial Accounting includes the following sub-modules: y General Ledger (FI-GL) y Accounts Payable (FI-AP) y Accounts Receivable (FI-AR) y Bank Accounting (FI-BL) y Asset Accounting (FI-AA) y Funds Management (FI-FM) y Travel Management (FI-TV) y Special Purpose Ledger (FI-SL) (I am not sure this is really considered a module anymore) The flexibility of the Finance modules organizational structure gives the module the ability to handle any economic situation. Whether a smaller organization with a single legal entity or a large organization with numerous companies, consolidations and varying legal requirements, the FI module can support and automate most financial postings and reporting. Below is a listing of the main organizational elements in the Finance module: y Company Code - Represents a legal reporting entity. There can be numerous company codes within an organization. Each has its own balanced books and reports itself as a single economic entity. y Credit Control Area - If credit management is being used, this sets the general parameters for how credit is managed. The credit control area can control credit for a single company code representing a decentralized credit management approach or multiple company codes representing a more centralized credit management approach. y Chart of Accounts - The system supports single or multiple charts of accounts providing the ability to record transactions and report financially in many different regulatory environments. A chart of accounts can support multiple Company Codes if necessary. Business process associated with the SAP FI module:

The Finance Module is designed to record financial transactions in a manner consistent with external reporting. External reporting must be in compliance with a country's accounting principles and is required for public entities, regulatory agencies and information required by banks and other lenders. The module also handles legal consolidations, receivables, payables, fixed assets as well as banking functions if required. This is brief review of the components and processes associated with the SAP FI module. For a more indepth understanding of the Financial Accounting module, please review our available SAP Financial Accounting training. Please Note: The Learn SAP pages on this site are intended to be brief summaries for SAP customers who are encountering SAP for the first time. For more advanced knowledge, please review the articles in our SAP Library, and our SAP Trainingofferings for both Super Users and Project Teams.

SAP Financial Supply Chain Management (SAP FSCM)

The Financial Supply Chain Management module (SAP FSCM) includes the following information and processes: y Credit Management y Cash and Liquidity Management y Collections Management y Dispute Management y Treasury and Risk Management FSCM provides the ability to have a better view of your corporate cash flow, manage disputes with your customers, and add efficiency to your billing processes. Below, you will find a diagram of the sub-components of FSCM and their key features.

This is brief review of the components and processes associated with the SAP FSCM module. For a more indepth understanding of the Financial Supply Chain Management module, please review our available SAP Financial Supply Chain Management training. Please Note: The Learn SAP pages on this site are intended to be brief summaries for SAP customers who are encountering SAP for the first time. For more advanced knowledge, please review the articles in our SAP Library, and our SAP Trainingofferings for both Super Users and Project Teams.

SAP Controlling (SAP CO)

The purpose of the Controlling (CO) module in SAP is to provide organizations with a method of slicing and dicing data to view costs from an internal management perspective and provide a view of profitability beyond that of basic financial reporting. This allows the organization to create information in a manner that is tailored to their specific business measurements needs. Controlling allows an organization to: y Plan and track overhead costs within the company's specific organizational structure. y Track costs related to specific projects or events and either capitalize those costs or charge them to appropriate departments upon completion. y Perform "Activity Based Costing". y Perform Product Costing, measuring production cost and variances. y Report profitability by product line, division, or other internal measurement.

Report sales and gross profitability by external measures such as market segments or customer groups. Controlling consists of all master data, configuration, and reporting required to analyze both spend and revenues, both within and across organizations. This includes the following master data: y Cost Elements - cost and/or revenue accounts y Cost Centers - departmental units y Profit Centers - business lines, product lines or divisions y Internal Orders - projects or events y Functional Area - Cost of Sales Accounting y Statistical Key Figures - non financial statistics for allocating or measuring financial costs y Activity Types - Labor or other activity costs Business process associated with the SAP CO module:

Subcomponents of the SAP Controlling (SAP CO) Module: y CO-OM - Overhead Management - CO-OM-CCA - Cost Center Accounting - CO-OM-OPA - Internal Order Accounting - CO-OM-CEL - Cost Element Accounting - CO-OM-ABC - Activity Based Costing y CO-PCA - Profit Center Accounting y CO-PA - Profitability Analysis y CO-PC - Product Costing

This is brief review of the components and processes associated with the SAP CO module. For a more indepth understanding of the Controlling module, please review our available SAP Controlling training. Please Note: The Learn SAP pages on this site are intended to be brief summaries for SAP customers who are encountering SAP for the first time. For more advanced knowledge, please review the articles in our SAP Library, and our SAP Trainingofferings for both Super Users and Project Teams.

SAP Materials Management (SAP MM)

The Materials Management module (SAP MM) consists of all master data, system configuration, and transactions to complete the Procure to Pay process. This process map spans from MRP generated procurement proposals through final invoice receipt and verification. SAP Materials Management Components or Sub-Components: y Vendor Master and Material Master data y Consumption Based Planning y Purchasing y Inventory Management y Evaluation of Materials y Invoice Verification Procure to Pay business process associated with the SAP MM module:

Subcomponents of the SAP Materials Management (SAP MM) Module: y Purchasing y Inventory Management y Logistics Invoice Verification y Physical Inventory y Material Valuation y Material Requirements Planning (MRP) y External Services Management This is brief review of the components and processes associated with the SAP MM module. For a more indepth understanding of the Materials Management module, please review our available SAP Materials Management training. Please Note: The Learn SAP pages on this site are intended to be brief summaries for SAP customers who are encountering SAP for the first time. For more advanced knowledge, please review the articles in our SAP Library, and our SAP Trainingofferings for both Super Users and Project Teams.

SAP Sales and Distribution (SAP SD)

The Sales and Distribution (SAP SD) consists of all master data, system configuration, and transactions to complete the Order to Cash process. It includes the following information and processes: y Customer Master and Material Master data y Sales Orders y Deliveries y Pricing y Billing y Credit Management Order to Cash business process associated with the SAP SD module:

Subcomponents of the SAP Sales and Distribution (SAP SD) Module: y Master Data y Sales Support y Pendulum List Indirect Sales y Sales y Shipping and Transportation y Billing y Empties Management y Credit Management y Foreign Trade/Customs y Sales Information System This is brief review of the components and processes associated with the SAP SD module. For a more indepth understanding of the Sales and Distribution module, please review our available SAP Sales and Distribution training. Please Note: The Learn SAP pages on this site are intended to be brief summaries for SAP customers who are encountering SAP for the first time. For more advanced knowledge, please review the articles in our SAP Library, and our SAP Trainingofferings for both Super Users and Project Teams.

SAP Logistics Execution (SAP LE)

Logistics Execution covers the areas of Warehouse Management and Inbound Receiving and Outbound Shipping processing. Warehouse Management provides an additional level of stock location detail than SAP Inventory Management. Inventory Management only maintains stock quantities at the Storage Location level, which is typically an area of your warehouse or a building on your company's campus. Warehouse Management manages stock down to the bin level, or to the physical coordinates within your warehouse. Warehouse Management also provides Picking and Putaway Strategy functionality. The following diagram illustrates a typical Outbound Process using Warehouse Management:

This is brief review of the components and processes associated with the SAP LE module. For a more indepth understanding of the Logistics Execution module, please review our available SAP Logistics Execution training. Please Note: The Learn SAP pages on this site are intended to be brief summaries for SAP customers who are encountering SAP for the first time. For more advanced knowledge, please review the articles in our SAP Library, and our SAP Trainingofferings for both Super Users and Project Teams.

SAP Production Planning (SAP PP)

Production Planning consists of all master data, system configuration, and transactions to complete the Plan to Produce process. It includes the following information and processes: y Material Master, Bill of Material, Routing and Work Center data y Sales and Production Plans y Long Term Planning y Demand Management y Material Requirements Planning (MRP) y Capacity Planning y Production Orders y KANBAN Diagram of the typical Plan to Produce business process associated with the SAP PP module:

SAP Production Planning (SAP PP) is compromised of the following modules: y Master Data - includes the material master, work centers, routings and bill of materials. y SOP - Sales and Operations Planning (SOP) provides the ability to forecast sales and production plans based on historical, current and future data. y DRP - Distribution Resource Planning allows companies the ability to plan the demand for distribution centers. y Production Planning - includes material forecasting, demand management, long term planning and master production scheduling (MPS). y MRP - Material Requirements Planning relies on demand and supply elements with the calculation parameters to calculate the net requirements from the planning run.

Shop Floor Control - includes the processing of production orders, goods movements, confirmations and reporting tools for production. y Capacity Planning - evaluates the capacity utilized based on the work centers available capacity to show capacity constraints. y Repetitive Manufacturing - in repetitive manufacturing, the manufacturing process is usually simple in that the same products are produced over a long period of time. This module provides the transactions and business process for companies to run repetitive manufacturing in SAP. y KANBAN - is a process of replenishment based on a pull system using KANBAN cards to generate the replenishment cycle. y Product Cost Planning - is the process of evaluating all the time values and value of component materials to determine the product cost. This is brief review of the components and processes associated with the SAP PP module. For a more indepth understanding of the Production Planning module, please review our available SAP Production Planning training. Please Note: The Learn SAP pages on this site are intended to be brief summaries for SAP customers who are encountering SAP for the first time. For more advanced knowledge, please review the articles in our SAP Library, and our SAP Trainingofferings for both Super Users and Project Teams.

SAP Quality Management (SAP QM)

SAP Quality Management (QM) assures that products meet stringent regulatory standards, are safe and uniform, and meet company product specifications. SAP QM processes are thoroughly integrated into the manufacturing process. The Quality Management (QM) process can integrate with the following SAP modules:

The Quality Management module covers all classic quality management tasks, such as quality planning (setup of data for QM tasks), quality inspection, and quality control. SAP has several QM terms that are important to note. y Quality Planning: the creation and management of master data that is required to plan and complete inspections. y Quality Inspection: the identification of whether an inspection unit meets specified criteria. y Quality Certificates: documents that contain text, value, and inspection results, which are used to certify the material. y Quality Notifications: the recording and processing of internal or external problems that result from poor quality. y Quality Control: the combination of specification from inspection planning, results from quality inspections, and quality notifications form the basis for quality control. y Test Equipment Management: the management of test equipment in the form of master data records in SAP. The following figure shows a sample flow that depicts typical tasks in the Quality Management process flow.

This is brief review of the components and processes associated with the SAP QM module. For a more indepth understanding of the Quality Management module, please review our available SAP Quality Management training. Please Note: The Learn SAP pages on this site are intended to be brief summaries for SAP customers who are encountering SAP for the first time. For more advanced knowledge, please review the articles in our SAP Library, and our SAP Trainingofferings for both Super Users and Project Teams.

SAP Plant Maintenance (SAP PM)

Plant Maintenance operates the overall maintenance business processes and functions. The Plant Maintenance module allows a maintenance organization to: y Identify, document, and correct failures and degradations of any assets for which they have responsibility. y Plan and schedule activities to prevent or predict failures and keep assets and processes operating within design specifications. Both Corrective and Preventative maintenance processes exist in the Plant Maintenance module. Corrective maintenance refers to the activities conducted by the Maintenance Organization to repair equipment of all forms within their area of responsibility. Preventive maintenance is a discipline that uses processes and activities that focus on the prevention of failures or performance degradation before it occurs.

The following diagram illustrates the common process for both Corrective and Preventative Maintenance within the Plant Maintenance module:

Subcomponents of the SAP Plant Maintenance (SAP PM) Module: y Management of Technical Objects - includes master data objects such as functional locations and equipment master records. y Maintenance Processing - includes processing steps such as notifications and work orders. y Preventative Maintenance - includes maintenance planning and work scheduling tasks. This is brief review of the components and processes associated with the SAP PM module. For a more indepth understanding of the Plant Maintenance module, please review our available SAP Plant Maintenance training. Please Note: The Learn SAP pages on this site are intended to be brief summaries for SAP customers who are encountering SAP for the first time. For more advanced knowledge, please review the articles in our SAP Library, and our SAP Trainingofferings for both Super Users and Project Teams.

SAP Project System (SAP PS)

Project System provides tools to track project milestone, costs and resources. SAP's Project System module contains tight integration to the Controlling, Human Resources, and Logistics modules. It utilizes personnel records from HR, rolls costs into Controlling and links to materials or customers in the Logistics modules. Two key objects that define the Project in SAP are: y Work Breakdown Structure - defines tasks and assign resources to those tasks y Network - defines the dependencies within the Work Breakdown Structure (WBS) Common processes in Project System include: y Tracking costs against WBS elements. These costs can either be from personnel time charged against the project or from materials and/or services procured to support the project. y Tracking milestones against key dates defined in the project.

The following diagram illustrates the hierarchy of objects within an SAP Project:

This is brief review of the components and processes associated with the SAP PS module. For a more indepth understanding of the Project System module, please review our available SAP Project System training. Please Note: The Learn SAP pages on this site are intended to be brief summaries for SAP customers who are encountering SAP for the first time. For more advanced knowledge, please review the articles in our SAP Library, and our SAP Trainingofferings for both Super Users and Project Teams.

SAP Human Resources (SAP HR)

The Human Resources module (SAP HR) consists of all master data, system configuration, and transactions to complete the Hire to Retire (or, as some say, Fire) process. It includes the following information and processes. SAP Human Resources (HR) Components or Sub-Components: y Personnel Management - Personnel Administration - Recruitment - Organization Structure - Compensation Management - Personnel Development y Organizational Management y Travel Management y Time Management y Payroll Typical Hire to Retire business process associated with the SAP HR module:

This is brief review of the components and processes associated with the SAP HR module. For a more indepth understanding of the Human Resources module, please review our available SAP Human Resources courses. Please Note: The Learn SAP pages on this site are intended to be brief summaries for SAP customers who are encountering SAP for the first time. For more advanced knowledge, please review the articles in our SAP Library, and our SAP Trainingofferings for both Super Users and Project Teams.

SAP Defined
"What Does SAP Stand For?" Don't say 'sap', say 'S' 'A' 'P'." Top Things SAP Stands For (From a User's Point of View) Stops All Production! Select Another Package Suffering and Pain Salary Advancement Program Scare Another Programmer Slow and Pointless Say a Prayer

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the original meaning (which is German) is: "Systeme, Anwendungen und Produkte in der Datenverarbeitung'.

When SAP came to America, it changed to Systems, Applications and Products. In the 1980s it was Systems, Applications and Products in Data Processing, a literal translation of the German wording.

SAP Implementation Methodology

An SAP implementation is a large scale, multi-month (or year) project that requires a "methodology" to help organizations successfully execute an SAP implementation and maximize the use of SAP's functionality after go-live. Because of the complexity inherent in SAP's software, consultants and companies around the world have built successful consulting businesses solely focused on the implementation of SAP. SAP's implementation methodology was first called "ASAP" meaning Accelerated SAP. The ASAP toolset was migrated to Solution Manager around 2004. The SOLMAN tool is used for project management, documentation, system support, defect tracking and many other requirements associated with an SAP implementation. SAP Implementation Methodology Roadmap: y Phase 1: Project Planning y Phase 2: Blueprinting y Phase 3: Realization y Phase 4: Final Prep y Phase 5: Go Live Each implementation phase has a set of goals and outcomes. For example, at the completion of the Blueprint phase, the business analysts should have developed a document, or blueprint, that details all the business processes that will be implemented in the SAP software with information about the flow of the transactions. At the completion of the Realization phase, the SAP system will be fully configured and ready for integration testing. During the Final Prep phase, testing and training will take place. And finally, during Go Live, the data conversion will be completed and users will start performing their daily business transactions in their new SAP system.

SAP Course Listing

ERPtips SAP courses offer implementation team training in all major SAP application and technical areas. Our training includes basic training for super users and mastery level instruction for project teams and more advanced SAP users. Each course covers basic instruction, advanced tips, live discussion, demonstration, and hands-on exercises. In addition to our standard public courses, our instructors can provide onsite training that is customized to meet the requirements of your individual project and organization. We have listed our most popular SAP courses below. To schedule a training session with ERPtips, to inquire about a course not listed, or to find out more information email Training@ERPtips.com.

SAP Functional Courses

SAP Overview and Navigation* This class is highly recommended for people who are new to SAP and signing up for other ERPtips classes offered the same week.

Financials

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Accounting Customization Asset Accounting Controlling* Cost Center Accounting Financials* Financial Accounting Fixed Assets* Financial Supply Chain Management

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Management Accounting General Ledger SOx Training for Corporate Governance

Logistics

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Inventory Management* Logistics Execution* Materials Management* Material Requirements Planning* Plant Maintenance* Pricing* Production Planning* Purchasing* Sales and Distribution*

Customer Relationship Management (CRM)

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Analytics CRM Interaction Center and e-Commerce Marketing Middleware Sales Service

Product Lifecycle Management (PLM)

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Enterprise Asset Management Life Cycle Data Management Project Management Quality Management Variant Configuration

Human Resources

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Benefits Basic Organizational Management* Payroll Basic Personnel Administration* Talent Management Time Management

Basic SAP Courses for Super Users

Basic Courses for Super Users

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Basic Accounts Payable* Basic Materials Management/Production Planning* Basic Payroll*

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Basic Plant Maintenance* Basic Plan to Produce* Basic Procure to Pay* Basic Product Costing* Basic Quality Management* Basic Sales and Distribution*

How Can I Start a Career as an SAP Consultant?

When you begin to think about your SAP career, you can start by deciding whether you want to be an SAP functional consultant or an SAP technical consultant. Of course, there can be some crossover between these two, and ideally, you will have a mix of both, but careers in SAP are about focus. Your focus is dictated by two things: the overall background of your experience, and where you want to be headed from here. Those SAP professionals with a functional background in areas such as finance, supply chain management, or customer relationship management, will likely focus on the functional side of SAP in their consulting careers. On the technical side, there is a distinction to be made between two main career paths: SAP developer and SAP Netweaver Engineer, or what has historically been called the "SAP Basis consultant." Basis incorporates hands-on SAP systems administration functions. Often, some DBA know-how is included in the Basis skill set, though on larger SAP installations, the SAP DBA is frequently a separate role. The same goes for SAP Security. While there is such a thing as an SAP Security consultant, security is often a skill set under the SAP Basis umbrella. Business Intelligence (BI) is starting to impact all SAP roles and all SAP professionals should consider developing proficiency in this area. With those distinctions in mind, how do you become an SAP consultant in today's marketplace? It's helpful to think of SAP consulting as a combination of two important skill sets: SAP implementation experience and enterprise consulting experience. It's not always easy to acquire both these skills at the same time. In the 1990s, you could sometimes get trained as a consultant while getting your first SAP exposure at the same time, and all you needed was a certification. That's not the case anymore. To become an SAP consultant in today's market, you almost always need to have SAP implementation experience under your belt already. That means you've done a 2-4 year stint working in a hands-on capacity on a full-blown SAP project. Typically, this experience is acquired while being a full-time employee. On the functional side, product configuration skills are still important, as well as full life cycle experience throughout an implementation. On the Basis side, product installation and systems optimization is the key, and on the developer side, experience customizing SAP reports, making UI enhancements, and developing third party interfaces are examples of bread-and-butter skills. This type of experience, accumulated over years, forms the core of the SAP skill set. Then there is the consulting side of the skill set. If you have experience consulting in other enterprise applications (Oracle, PeopleSoft, etc) and understand ERP implementation methodologies, you might be able to break into SAP from that side, bringing the consulting side of the skill set to the table. However, on the SAP side, you'd still be considered a "junior" consultant and there aren't nearly as many junior consulting roles as there once were. The consulting side of the skills profile is not to be underestimated. It usually takes years to become a highly effective consultant. Nothing takes the place of experience on multiple projects, where you master the art of helping users to define their business requirements, guiding them through the implementation of SAP that meets their requirements, and leaving them with knowledge successfully transferred. It is interesting to note that some SAP professionals are able to build these skills as full time employees, essentially functioning as internal consultants for their team. What is the bottom line to becoming an SAP consultant? 1. Obtain hands-on SAP implementation experience, preferably on multiple projects. 2. Gain experience with SAP implementation methodologies and solving customer problems. 3. Bring together SAP implementation and enterprise consulting skills into one skill set.

If you have trouble landing an SAP consulting position, look to strengthen either your hands-on SAP skills or your overall consulting skills. Then try again. In this market, persistence pays. I rarely see examples of people who are determined to become SAP consultants who don't eventually break through. But sometimes you have to be creative about finding the right opportunity. Self-education options are numerous, and plenty of training and certification options can help you on your way. But they won't take the place of hands-on experience, so keep that in the forefront of your career goals at all times. Content provided by Jon Reed. Jon is an independent SAP analyst and SAP Mentor who blogs, tweets, and podcasts on SAP market trends. He is the driving force behind JonERP.com, an interactive website that features Jon's SAP Career Blog and his podcasts for SAP professionals.

IFS/eInvoice improves and automates the supplier invoicing workflow by reducing the amount of invoices needing manual registration. Invoice scanning as well as true electronic invoices are enabled. Advanced rules for authorisation and matching with purchase orders significantly speed up the invoice processing. Events messages and history logs further improve the process and make follow-up easier.

IFS/Budget Management lets you manage the planning, budgeting, and forecasting workflow in IFS Applications. Use it to set your corporate strategy and to fix targets for the scorecard and budget templates. Continuous planning and rolling forecasting allow you to monitor and update the process at all stages. This component is designed for integration with Microsoft Excel.

IFS/Cash Flow offers you flexible liquidity analyses based on a variety of scenarios that you select. Use customer orders, purchase orders, accounts receivable, and payables to generate projections of your cash position. Use this information to analyse your company for better cash management and strategic decision making.

IFS/Accounts Payable simplifies your supplier invoicing and payment processes. Support for self-billing reduces invoice handling. A variety of currency and payment options contributes to the flexibility of the component while follow-up and analysis capabilities ensure full control.

IFS/Accounts Receivable simplifies customer invoicing and payment processes. It automatically handles coding of routine transactions. Integrated with customer orders and accounting rules functionality, it helps minimise errors and simplify routines.

IFS/Fixed Assets is a fully integrated accounting tool for strategically managing your companys fixed assets. Moreover, it includes multi-country support for depreciation methods, making it the perfect fixed asset tool for a global organisation.

IFS/Consolidated Accounts provides users with data from any number of companies consolidated into one place. They can map different charts of accounts, budgets, and currencies from subsidiary to parent. Snapshots of subsidiary data, taken during the period, enable management to view up-to-date consolidated financial information whenever needed.

IFS/General Ledger ensures you have a solid base for financial analysis and reporting, plus powerful simulation capabilities, including multiple general ledgers and advanced distribution rules. It helps you to gather and consolidate financial events from all systems and subsidiaries within a corporate group.