Unit 3

System-Wide Concept

Lesson overview

This lesson focuses on the system-wide concepts that underline the SAP system.These concepts,organizational elements,master data,and transactions,are the basic elements designed and utilized to represent a company’s enterprise structure and business processes within in the SAP system.

Organizational Elements

A company;s enterprise structure is mapped to SAP applications using organizational elements

Master Data

Created centrally and available to all applications and all authorized users,master data also has an organizational aspect because its information is organized into views that are assigned to organizational elements.

Transaction

Transaction are application programs that execute business processes in SAP system.Examples includes create sales order,chage customer master or display a sales order’s list report.

Business Examples

Processes within a company generally take place a cross departmental boundaries.In global companies,these processes take place across national and company boundaries.The long-term success of IDES AG,is dependent on collaboration with business partners and a global outlook.IDES wants new orders from costumers entered into the SAP system with minimal data entry and maximum data accuracy IDES must also have record of all transactions.

Organizational Elements

• ·         Client
• ·         Company Code
• ·         Plant
• ·         Storage Location
• ·         Sales Organization
• ·         Distribution Channel
• ·         Organizational Unit
• ·         Position

IDES

   IDES (International Demonstration and Educational System) is an international company dependent upon collaborations with external business partners and a global outlook.

   IDES AG is a manufacturing company.It operetes worldwide and has a number of subsidiaries.This company’s processes are using during this training corse to demonstrate the solutions provided by SAP

   As a model company,IDES has a large number of business branches and branch-specific subsidiaries.Business processes are fully set up and include all core areas,such as purchasing,sales,marketing,and manufacturing.

   As an international company,IDES has several holdings and requires the ability to report to shareholders on an international bases.Management’s goal over the next year is to increase profits.Costing analysis reports,cash management reports,and overhead cost reports are to be captured to a business intelligence system for management review

   IDES AG produces many products.Products are manufactured at a number of production locations worldwide.Global planning ensures that deliveries are made from the nearest distribution center.

System-Wide Master Data Concept

   In SAP,master data is created centrally and available to all applications and all authorized users.Centrally stored master data means data records are always consistent,up-to –date,and free redundancy.Master data also has an organizational aspect because its information is organized into views that are assigned to organizational elements.

   Integrating of corresponding data into one single database objects means that the problem of data redundancy is not an issue and data inetgrity enhanced.All areas can use the stored data,including sales,purchasing,inventory management,materials planning,invoice verification,finance,and human resources

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Costumer Master

   A costumer master contains key information that defines the business relationship between a company and its costumer.Company code data controls the posting procedure and subsequent processing,such as payments and dunning.Sales organization data provides information on costumers for support execution of such business processes as entering sales orders,shipping,billing,and processing payment.The costumer master;s three part structure is represented by:

1.       General Data: This data is equally relevant to every company code and every sales organization within a company

2.       Data for Company Codes: This data reflects company-specific agreements with costumer.

3.       Data for Sales : This data has different characteristics for a company’s sales organizations and channels.

Material Master

   The material master contains all of the key information a company needs to manage a material within its organization.The material master defines,among other things,how a product is sold,manufactured,purchased,inventoried,accounted,and costed.The information in the material master is grouped into views that are organized business function.

Personnel file

   Personnel files are master data records used primarily mySAP ERP Human Capital management.These master records follow the same basic three-part structure,as do other master records.

The organizational elements used by mySAP HCM are unique and,as a group,they are referred to as Organizational Management.

   The functions of Organizational Management enable you to quickly and efficienctly map your current organizational and reporting structure with its organizational objects-organizational units,jobs,positions,and task.

Transactions

   Transactions are application programs that execute business processes in the SAP system.Whenever possible,master data is copied during transaction processing,thusavoiding re-entry of data.

   In addition,when performing each transaction,applicable organizational elements must be entered.For example,by specifying the sales organization information,the appropriate sales group is given credit for the sales activity,similary,the designation of the plant/storage location determines product sourcing.

Whenever a transaction is executed in the system,a document is created.That document,a data record of the transaction,contains all of the relevant predefined information from the master data and organizational elements