IS 466 ADVANCED TOPICS IN INFORMATION SYSTEMS LECTURER : NOUF ALMUJALLY
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IS 466 ADVANCED TOPICS IN INFORMATION SYSTEMS LECTURER : NOUF ALMUJALLY
IS 466 ADVANCED TOPICS IN INFORMATION SYSTEMS LECTURER : NOUF ALMUJALLY 5 – 10 – 2011 College Of Computer Science and Information, Information Systems Department Lessons Learnt from Lecture4 • Instance? • each install of the SAP R/3 software on an individual application server How To web-enable the SAP Applications? Objectives 3 Business Process Integration Organisational Data Master Data Rules Transaction Data Organizational Elements of FI Organizational Elements of CO Organizational Elements of SD Organizational Elements of MM Material Management Module Business Process Integration FI MM Rules FI MM SD SD Business Process Integration • • “The Stool” : a metaphor for the SAP structure There are four basic components needed to run execute SAP: 3. Organizational Data Master Data Rules 4. Transactions 1. 2. • The Legs which ‘hold up’ the transactions • Transactions cannot be run unless these are setup. • The legs are typically configured during the implementation process. Organizational Data • A hierarchy in which the organizational units in an enterprise are arranged according to tasks and functions. Are static data and are rarely changed The definition of organization units is a fundamental step, it is a critical factor in how the company will be structured Data that is defined when the system is installed • An example is the table with country codes. • • • Master Data • • • • Master data is relatively fixed Before making the master data configurations, you must have completely defined the organizational structures Master data is created centrally and shared among applications and business processes. Ex. • Material master data contains all information about the materials a company procures, manufactures, stores and ships • Purchasing information record contains information on a specific material and a vendor supplying this material Master Data (Con.) • Vendor master data contains information about the vendors that supply an enterprise. It contains data such as: • the vendor’s name and address • The currency used for ordering from the vendor • Names of important contact persons (sales staff) • General Ledger master data It serves as a complete record of all business transactions of a company. Rules • • • • Defines the parameters for Master Data and Transactions Determines functionality for Master Data and Transactions Relatively fixed Changes as policy changes Transaction Data • • • Data resulting from executing business process steps. Unlike master data, transactional data is dynamic – each transaction is unique An example of transaction data is: • • The goods in a warehouse which change after each purchase order The company is selling some materials to one of the customer. So they will prepare a sales order for the customer. When they will generate a sales order means they are doing some sales transactions. Those transactional data will be stored in Transactional table. Con. SAP Organizational Elements Definition • • • Definition of Organizational Elements: In the SAP R/3 System, organizational elements form structures that represent the legal and organizational views of a company. These views include: accounting, manufacturing planning and execution, materials management, and sales and distribution. In summary, the organizational elements and their structures form the framework in which all business transactions are processed. Mapping our organization to SAP Organizational data SAP Enterprise Company Client Subsidiary Plant Factory Warehouses Company Code Sales Organization Sales Organization Division Division Storage Locations Material Management Organizational Structure Client 401 Company USA Germany Purchasing Organization N. America Europe Plant Storage Location New York Receiving California Warehouse Hamburg Receiving Warehouse Key Organizational Elements Client: • • • • • • self-contained unit in SAP system with separate master records and complete set of database tables. Root of the organizational hierarchy. Highest organizational element. The Client represents the enterprise/headquarters group. All related companies contained in the same client. Generally one client per SAP production instance. Master data is created at the client level. Financial Accounting View (FI) Key Organizational Elements - FI Company Code: • • • • • • a distinct legal entity contained within an ERP system. “Distinct legal entity” - reports its operations independently. Accounts are managed by company code. Business transactions are carried out at the company code level. Client may contain 1 or more company codes. A company code can be in only 1 client. Business Area: • Internal organizational unit used to create balance sheets and profit and loss statements below the company code level (optional) Controlling View (CO) CO FI Controlling Area Company Code CO CO Cost Center FI Business Area Profit Center Key Organizational Elements - CO Controlling Area: • • Independent organizational structure for which costs and revenues are collected can have many company codes assigned to it Profit Center: • a unit that collects revenue usually product lines (cost centers are assigned to profit centers) Cost Center: • a unit that collects commonly related costs Sales and Distribution View (SD) Key Organizational Elements - SD • • • • Sales Organization: central organizational element controlling terms of sale to customer. Distribution Channel: mechanism through which goods and/or services reach the customer. Ex. wholesale, retail and direct sales. Division: logical groupings of related products. Sales Area: a unique combination of a sales organization, distribution channel, and division. Materials Management View (MM) Key Organizational Elements - MM • Plant: location where goods or services are produced, maintained, or distributed. • • • Storage location: place within a plant where goods are stored. • • • Each plant belongs to only 1 company code. A company code may have multiple plants. Each plant must have at least one storage location. Each storage location belongs to only 1 plant. Purchasing Organization: part of organization responsible for procuring materials and services. • Negotiates purchases, sets pricing conditions, engages in strategic purchase planning, sets contracts. Material Management Conditions • Purchase Organization • • • Plant • • • PO linked to one, many or no CC PO has to be linked to one or many plants PL has to be assigned to a CC PL can have one to many Storage locations Storage Location • Many SL to one PL Material Management Module Materials Management Module • • The Materials Management (MM) module is fully integrated with the other modules of the SAP System. It supports all the phases of materials management: materials planning and control Purchasing goods receiving inventory management and invoice verification. Components of Materials Management Foreign Trade/ Customs Valuation Materials Management (MM) Logistics Invoice Verification Purchasing Service Master Service Entry Sheet Material Master Inventory Mgmt. Product Catalog MRP Physical Inventory Procurement Process (Procure-to-Pay) Purchase Requisition Purchase Order Notify Vendor Payment to Vendor Invoice Receipt Vendor Shipment Goods Receipt Procurement Process • This is a standard view of the procure to pay process and the most common. Procurement Process 1. 2. 3. 4. 5. 6. 7. Starts with a requisition that needs to be filled. The purchase order is the document to fill the need: usually includes the vendor, cost/price, quantity, terms and other pertinent information. [ part one of the 3-way match] Notifying the vendor The goods are shipped and brought to the organization The goods are received and then put away [ part two of the three way match] An invoice is received from the vendor [third part of the 3way match] After the tolerances/verification of the 3-way match are met a payment is made according to the terms agreed to on the purchase order. 3-Way Match for Payment 32 Purchase Order Payment Program Invoice Receipt Debit Credit Verification Goods Receipt Outcomes of the Procurement Process 33 1. 2. 3. 4. 5. Purchase Requisition Purchase Order Goods receipt Invoice Receipt Pay the Vendor 1- Purchase Requisitions 34 • • • Internal document Requesting a certain quantity of material or service on a certain date Can be created: • • Manually Automatically (Materials Requirements Planning (MRP), sales orders, etc.) Purchase Requisition (con.) What are types of information required? • Materials • Quantities • Delivery dates • Plants • Purchasing groups, etc. 2- Purchase Orders 36 • Purchase Orders are: • • A formal request to a vendor to provide materials or services An internal planning and tracking tool. The process: 1. Request for Quotations • The business sends out RFQ to the vendors and the vendors respond back with Quotations with prices. quotation evaluation Purchase Order 2. 3. • Printed, fax, sent, etc. to a vendor Purchase Order (con.) What are types of information required? •Vendor •Material and/or service •Quantity and price •Delivery dates •Terms of payment 3- Goods Receipt 38 • Goods receipt with reference to a purchase order • • • • • • Copy data from purchase order Delivery notification Invoice verification Updates purchase order history Inventory update Automatic update of General Ledger (G/L) accounts Goods Receipt (con.) 4- Invoice Receipt 40 Invoice Verification 41 • • • • Matches the vendor’s invoice to the purchase order and the goods receipt (3-way match) Matches price and quantity Updates the purchase order and its history Updates accounting information 5- Pay the Vendor 42 • • • Selects invoices for payment based on the payment terms in the vendor master or purchase order Generates payment for released invoices Updates accounting information Pay the Vendor (con.) Questions ?? 44 What should you do this week ? • • Review the lectures. Do the Tutorial and submit it online: [email protected] Due date: Friday. • • Read The assignment to discuss it during the tutorial. Consult Lecturer if any questions related to the subject. 45