IBP Part 00 Introduction v02 PDF

Integrated Business Processes with SAP ERP
Script 0: Introduction to SAP ERP
Tutor: Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated Processes with SAP ERP Introduction to SAP ERP
Copyright
- This document is in parts based on publications for the TERP10 course mySAP ERP
integrated business processes those parts are subject to the copyright of SAP AG.
- All figures used within this course are created in the style of the TERP10 if not labeled
otherwise. Those parts are subject to the copyright of SAP AG.
- All screenshots used within this document, even if displayed in extracts, are subject to
the copyright of SAP AG.
- Distribution and reproduction of this document or parts of this document in any
form is prohibited without the written permission of Prof. Dr. Heimo H. Adels-
berger, Dipl.-Wirt.-Inf. Pouyan Khatami and Dipl.-Wirt.-Inf. Taymaz Khatami.
Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

Dipl.-Wirt.-Inf. Taymaz Khatami Page 2
Table of Contents
COPYRIGHT ........................................................................................................................... 2
TABLE OF CONTENTS ......................................................................................................... 3
TABLE OF FIGURES ............................................................................................................. 5
LIST OF LITERATURE ......................................................................................................... 7
COURSE OUTLINE ................................................................................................................ 8
COURSE OBJECTIVES ............................................................................................................... 8
STRUCTURE, NOTATION, AND ICONS ....................................................................................... 9
GLOSSARY ............................................................................................................................ 11
1 INTRODUCTION .......................................................................................................... 17
2 ENTERPRISE RESOURCE PLANNING WITH SAP ERP ..................................... 19
2.1 EXCURSUS: SAP THE COMPANY ............................................................................ 19
2.2 THEORY: SAP R/3, SAP ERP AND SAP NETWEAVER .............................................. 22
2.2.1 SAP R/3 ................................................................................................................ 22
2.2.2 SAP ERP ............................................................................................................... 23
2.2.3 SAP NetWeaver .................................................................................................... 30
2.3 ELUCIDATION ............................................................................................................ 42
2.3.1 SAP R/3 ................................................................................................................ 42
2.3.2 SAP ERP ............................................................................................................... 43
2.3.3 SAP NetWeaver .................................................................................................... 44
3 OVERVIEW OF SAP ERP ........................................................................................... 50
3.1 THEORY: SAP ERP BASICS ....................................................................................... 50
3.1.1 Organizational plan of SAP ERP ......................................................................... 50
3.1.2 Master Data, Transactions, and Transaction Data ............................................. 57
3.1.3 Example Processes in SAP ERP........................................................................... 59
3.1.4 Reporting Solutions .............................................................................................. 61
3.2 ELUCIDATION ............................................................................................................ 64
3.2.1 Organizational Plan of SAP ERP......................................................................... 64
3.2.2 Master Data, Transactions and Transaction Data .............................................. 68
3.2.3 Reporting Solution................................................................................................ 69
4 IDES: THE SAP MODEL COMPANY ....................................................................... 70
4.1 EXCURSUS: THE IDES CONCEPT ............................................................................... 70
4.1.1 Characteristics ..................................................................................................... 70
4.1.2 IDES for training .................................................................................................. 70
4.1.3 IDES negotiated agreement ................................................................................. 71
4.2 EXCURSUS: IDES THE COMPANY........................................................................... 71
4.2.1 The IDES Group ................................................................................................... 71
4.2.2 IDES Organizational structure ............................................................................ 77
4.2.3 Conclusion ............................................................................................................ 81
4.3 EXCURSUS: INFORMATION ABOUT UCC .................................................................... 82
5 NAVIGATION IN THE SAP SYSTEM....................................................................... 83
5.1 PRACTICE: SAP ERP SCREEN ELEMENTS IN SAP GUI ............................................. 83
5.2 PRACTICE: NAVIGATION IN SAP ERP USING THE SAP GUI ...................................... 87
5.2.1 Overview of Navigation in the SAP GUI .............................................................. 87

5.2.2 Navigation unit for SAP ERP ............................................................................... 98

5.2.3 Answers to the navigation unit ........................................................................... 100
6 DATA SHEET .............................................................................................................. 104
7 REFLEXION ................................................................................................................ 105
7.1 QUESTIONS .............................................................................................................. 105
7.2 STANDARD SOLUTION ............................................................................................. 108

Table of Figures
Figure 1: Annual Report 2011 (1) ............................................................................................ 20
Figure 2: Milestones of SAP .................................................................................................... 21
Figure 3: SAP R/3 modules: Nicolescu/Wittges 2006 ............................................................ 23
Figure 4: SAP ERP ................................................................................................................... 24
Figure 5: From SAP R/3 to SAP ERP ...................................................................................... 26
Figure 6: SAP ERP is a solution within SAP Business Suite .................................................. 27
Figure 7: Enhancement Packages ............................................................................................. 28
Figure 8: Quick Facts to enhancement packages ..................................................................... 29
Figure 9: Things You Should Know Before Installing SAP Enhancement Packages ............. 30
Figure 10: SAP NetWeaver ...................................................................................................... 31
Figure 11: SAP Enterprise Service Architecture...................................................................... 33
Figure 12: SAP NetWeaver ...................................................................................................... 34
Figure 13: Integration Levels of SAP: Employees, Customers and Partners - Functions of SAP
NetWeaver in the Area of User Productivity ........................................................................... 34
Figure 14: IT Practices ............................................................................................................. 38
Figure 15: IT Practices and IT Scenarios ................................................................................. 39
Figure 16: Advantages of SAP NetWeaver.............................................................................. 41
Figure 17: IT Scenarios: help.sap.com ..................................................................................... 46
Figure 18: IT Scenario Running an Enterprise Portal: help.sap.com ....................................... 46
Figure 19: Installable Units: help.sap.com ............................................................................... 48
Figure 20: SAP organizational structure: terminology ............................................................ 51
Figure 21: SAP organizational structure .................................................................................. 53
Figure 22: Plants in SAP ERP .................................................................................................. 54
Figure 23: SAP sales areas ....................................................................................................... 55
Figure 24: Purchasing organization in SAP ............................................................................. 56
Figure 25: Customer master records: example ......................................................................... 57
Figure 26: Master Data Example: Material Master .................................................................. 58
Figure 27: Transactions in SAP ............................................................................................... 59
Figure 28: Procurement: example process ............................................................................... 60
Figure 29: Engagement management: sample process ............................................................ 61
Figure 30: Reporting and Analytics ......................................................................................... 62
Figure 31: OLTP versus OLAP ................................................................................................ 62
Figure 32: Overview of IDES group areas ............................................................................... 71
Figure 33: IDES Company Codes ............................................................................................ 72
Figure 34: Company Code 1000 (Germany) ............................................................................ 73
Figure 35: Company Code 2000 (Great Britain) ...................................................................... 74
Figure 36: Company Code 2100 (Portugal) ............................................................................. 74
Figure 37: Company Code 2200 (France) ................................................................................ 74
Figure 38: Company Code 2300 (Spain).................................................................................. 75
Figure 39: Company Code 3000 (USA) ................................................................................... 75
Figure 40: Company Code 4000 (Canada) ............................................................................... 76
Figure 41: Company Code 5000 (Japan).................................................................................. 76
Figure 42: Company Code 6000 (Mexico) .............................................................................. 77
Figure 43: IDES Industry ......................................................................................................... 77
Figure 44: IDES Human Resources ......................................................................................... 78
Figure 45: IDES Financials ...................................................................................................... 78
Figure 46: IDES Sales and Distribution ................................................................................... 79
Figure 47: IDES Sales and Distribution details ....................................................................... 80

Figure 48: IDES Logistics ........................................................................................................ 80

Figure 49: SAP Logon.............................................................................................................. 83
Figure 50: SAP Log-in Screen: SAP-System-Screenshot ........................................................ 84
Figure 51: SAP Start Screen: SAP-System-Screenshot ........................................................... 84
Figure 52: Menu bar: SAP-System-Screenshot ....................................................................... 85
Figure 53: System function bar: SAP-System-Screenshot ....................................................... 85
Figure 54: SAP Easy Access Title Bar: SAP-System-Screenshot ........................................... 85
Figure 55: Application tool bar: SAP-System-Screenshot ....................................................... 85
Figure 56: Status bar: SAP-System-Screenshot ....................................................................... 85
Figure 57: SAP Easy Access Menu detail view 1: SAP-System-Screenshot .................... 86
Figure 58: SAP Easy Access Menu detail view 2: SAP-System-Screenshot .................... 87
Figure 59: SAP Easy Access Menu Assign to Favorites: SAP-System-Screenshot .......... 88
Figure 60: SAP Easy Access Menu Delete from Favorites: SAP-System-Screenshot ...... 88
Figure 61: Command Field: SAP-System-Screenshot ............................................................. 89
Figure 62: SAP Easy Access Menu technical names: SAP-System-Screenshot ............... 90
Figure 63: System prompts you to save: SAP-System-Screenshot .......................................... 90
Figure 64: Session Concept: SAP-System-Screenshot ............................................................ 91
Figure 65: F1-help: SAP-System-Screenshot .......................................................................... 92
Figure 66: F4-help: SAP-System-Screenshot .......................................................................... 92
Figure 67: Help Menu: SAP-System-Screenshot ..................................................................... 93
Figure 68: Display Technical Key (1): SAP-System-Screenshot ............................................ 93
Figure 72: Search SAP menu: SAP-System-Screenshot .......................................................... 96
Figure 73: Create short-cut: SAP-System-Screenshot ............................................................. 97
Figure 74: Usage of short-cut: SAP-System-Screenshot ......................................................... 97
Figure 75: SAP Message: SAP-System-Screenshot............................................................... 100
Figure 76: Display Customer (Accounting): SAP-System-Screenshot.................................. 101
Figure 77: Favorites: SAP-System-Screenshot ...................................................................... 102
Figure 78: Performance Assistant: SAP systems screenshot ................................................. 103
Figure 79: Input help, F4 Help function: SAP-System-Screenshot ....................................... 103

List of Literature
This courses content is partially based on the following references:
1. Appelrath, Hans-Jrgen/Ritter, Jrg: SAP R/3 Implementation Methods and Tools,

Springer, 2000.
2. Brinkmann, Sandra/Zeilinger, Alex: Finanzwesen mit SAP R/3 - Betriebswirtschaft-
liches Customizingwissen fr SAP R/3 FI. SAP Press, 1999.
3. Brck, Uwe: Praxishandbuch SAP-Controlling. SAP Press, 2005.
4. Dickersbach, Jrg Thomas/Keller, Gerhard/Weihrauch, Klaus: Produktionsplanung
und -steuerung mit SAP. SAP Press, 2008.
5. Edinger, Jrg/Krmer, Christian/Lbke, Christian/Ringling, Sven: Personal-
wirtschaft mit SAP ERP HCM. SAP Press, 2008.
6. Forsthuber, Heinz: Praxishandbuch SAP-Finanzwesen. SAP Press, 2006.
7. Franz, Mario: Projektmanagement mit SAP Projektsystem. SAP Press, 2007.
8. Hellberg, Torsten: Einkauf mit SAP MM. SAP Press, 2007.
9. Maassen, Andr/Schoenen, Markus/Werr, Ina: Grundkurs SAP R/3 Lern- und Ar-
beitsbuch mit durchgehendem Fallbeispiel Konzepte, Vorgehensweisen und Zu-
sammenhnge mit Geschftsprozessen. 3. Auflage, Vieweg 2005.
10. Moos, Eckhard: Kostencontrolling mit SAP - Business Engineering mit SAP-CO,
2002.
11. Nicolescu, Valentin/Wittges, Holger: SAP HCC Kurs NetWeaver 04 basierend
auf den SAP NetWeaver Ramp-Up Unterlagen, 2006. SAP-Archiv: mySAP ERP
Alle Neuheiten auf einem Blick, 2004.
12. Scheibler, Jochen: Vertrieb mit SAP. SAP Press, 2007.
13. Schrader, Heino/Weidner, Stefan: IDES Das integrierte Modellunternehmen fr
Forschung und Lehre 2005
14. Schulten, Ernst: FH Aschaffenburg Customizing in SAP R/3, 2005
15. Thome, Rainer: Vom Customizing zur Adaption des Standardsoftwaresystems R/3;
in: Schriften zur Unternehmensfhrung; Band 62, Wiesbaden 1998 SAP-Bibliothek
16. Weidner, Stefan: Fallstudie Customizing Mrz 2005 SAP-Hochschulkompetenz-
Zentrum Magdeburg
17. http://help.sap.com
18. SAP Education: TERP10 SAP ERP Integration of Business Processes. 2011

Course Outline
This course deals with the leading standard software for Enterprise Resource Planning, name-
ly SAP ERP. Covering the content of the SAP-owned course TERP10, this course gives atten-
tion to a bulk of SAP ERP, SAP analysis and the management solution SAP BW (Business
Information Warehouse). Aside from gaining in-depth theoretical knowledge regarding SAP
solutions and components, this course gives you the chance to practically apply your new
knowledge to the SAP system within case studies. The ultimate goal for students in this
course is to gain competencies in the area of SAP ERP standard solutions as well as receiving
a certificate issued by the University of Duisburg-Essen and to take (and hopefully pass) the
TERP10 exam by SAP.
Course objectives
As an SAP consultant, you focus on consulting, sales and implementation of SAP ERP com-
ponents. Therefore, you will need to be familiar with the integrated logistical and financial
processes in SAP ERP and the utilization of analysis components like Business Information
Warehouse (SAP BW).
At the end of this course you will be able to:
- explain how basic business processes in the areas

o Procurement,
o Material Planning,
o Life Cycle Data Management,
o Production Planning,
o Inventory Management,
o Sales Order Management,
o Human Capital Management,
o Financial Accounting and Controlling,
o Plant Maintenance and Customer Service, and
o Project Management
interact in SAP ERP.
- explain analysis and reporting functions, especially for SAP BW components.
- explain Enterprise Resource Planning with SAP ERP.
- explain the technical platform of SAP ERP, i.e., SAP NetWeaver.
- describe the integration of SAP ERP core components.
- perform integrated business processes and business cases in SAP ERP.
Conventional courses equip you with concepts, principles and theories by mostly using the
style of a lecture. These courses aim at knowledge transfer and of theoretical links. In Com-
parison to that, case studies will improve your capabilities of analyzing business problems,
developing solutions and decision-making.

The main objective of this course is to give you an understanding of theoretical foundations
and practical application with the leading standard software for businesses. Thus, you will
develop competencies in the area of Enterprise Resource Planning (ERP). In addition to the
possibility of attaining a certificate by the University of Duisburg-Essen, this course serves as
extensive preparation for the SAP TERP 10 exam.
Structure, Notation, and Icons

This course consists of 13 lecture notes (teaching units).
00 Introduction to SAP ERP
01 Procurement in SAP ERP
02 Material Planning in SAP ERP
03 Life Cycle Data Management in SAP ERP
04 Manufacturing Execution in SAP ERP
05 Inventory and Warehouse Management in SAP ERP
06 Sales Order Management in SAP ERP
07 Human Capital Management in SAP ERP
08 Financial Accounting in SAP ERP
09 Management Accounting in SAP ERP
10 Enterprise Asset Management in SAP ERP
11 Project Management in SAP ERP
12 Business Intelligence in SAP ERP
Aside from script part 12, which does not contain practical work on the system, all script parts
are structured the same way. Those teaching units are structured in Theory, Elucidation,
Practical Application, Excursus and Reflection parts. The following Icons are used all over
this course to identify those script parts. Youll find them in the leftmost position of the page.
Theory-labeled sections of this course deal with theoretical foundations of SAP

ERP. Since SAP AG considers substantiated knowledge of a product as the
most important criterion for the admission to the certification exam for SAP
consultants and associates, the content of the theoretical sections is of high rel-
evance for the certification exam of SAP. Therefore, you should familiarize
yourself with those sections during preparation for the exam. These parts are crucial for the
SAP exam!
Elucidation-labeled sections of this course also deal with the theoretical foun-
dations of SAP ERP. Youll find elucidations at the end of each chapter. These
parts summarize what you should have learned from the given chapter. In the
Elucidations you also will be given an overview of the topics, a better under-
standing of the Theory-labeled script parts, plus some additional information.
Often some technical details will be explained in an everyday speech kind of language.
From a scientific point of view, those passages might not be completely accurate but it will
give you a less abstract view on the subject matter. Although the information provided in the

elucidations is not primal for the SAP exam, you should consider it in your learning. I would
never recommend that you completely ignore the Elucidations. At least read them and try to
understand the content. Most of the content of the Elucidations are summaries of the Theory
chapters, anyway.
Sections labeled as Practice teach you how to apply theoretically gained

knowledge to the SAP ERP system using case studies to practically substanti-
ate theoretical knowledge and enhance the total comprehension. Additionally,
you will receive a certificate for proper processing of all case studies issued by
the University of Duisburg-Essen. The practical chapters are not per se relevant for the SAP
exam, although they are crucial for understanding the theory.
The Excursus section consists of additional topics to ensure in-depth understand-

ing. Although they are not relevant to the SAP examination, they will be of
great help in understanding the SAP ERP system.
In the Reflection section, you will answer questions concerning the covered top-
ics for revision purposes. This section is not compulsory but highly advisable
with respect to the SAP exam.
Additionally, there are three further sub-icons that are used in this course within the different
parts (see icons above). The following sub-icons are accompanied with italic formatting:
The Note icon is mostly used in the theory parts. The icon indicates an additional
piece of information.
Caution is mostly used in the practical application parts. The icon is always used
in steps that are error-prone. If you see this icon, you should read the instruction
very carefully to avoid any mistakes.
Sometimes, in the practical parts, you will be prompted to accomplish processes

or individual steps on your own. In those cases you will receive a Hint on how to
solve the problem. Hints do not contain detailed information but an idea on how
to proceed.

Glossary
This Glossary contains a variety of terms that are used in context with SAP
products. You do not need to learn those terms for the SAP exam. The Glossary
is only meant as a look-up table.
ABAP Advanced Business Application Programming: SAPs programming lan-

guage.
Agate Application gateway: core processing component of the Internet Transac-
tion Server (ITS) that links the ITS to the R/3 System.
ALE Application Link Enabling: enables distribution of business processes and
functions to several loosely-linked SAP systems.
ALE distribution model Describes the ALE message flow between logical systems. The relation-
ships between logical systems, message types, BAPIs and filters are defined
in the distribution model.
API Application Programming Interface: software interface for application pro-
grams.
APO Advanced Planner & Optimizer: software solution for dynamic supply chain
management, that is, active processing of the entire logistics chain (supply
chain) from the vendor to the customer.
Application hosting SAP or SAP partners set up and/or operate systems and applications.
ATP Available to Promise
AWB Administrator Workbench
Backend system Independent IT system with its own database (for example, mySAP.com
component systems)
BAPI Business Application Programming Interface: functional interfaces that use
methods from business objects.
BBP Business-to-Business Procurement: e-commerce business process that ena-
bles employees to purchase goods and services directly from the provider.
Business object Abstract program-related representation of actual business objects
BW SAP Business Information Warehouse: enables the evaluation of data from
both SAP and non-SAP applications.
CFM Corporate Finance Management: SAP initiative that provides a comprehen-
sive package for financial resource management and for the analysis and
optimization of a companys financial business processes.
CGI Common Gateway Interface: the CGI standard interface enables external
programs to be started from the World Wide Web which allows interac-
tive Web pages to be created on the server.
Channel Preselected transaction or Web page of which an updated version is dis-
played either automatically or on request.
ChannelBar Bar on the left-hand side of the Workplace browser window that displays
the status of the channels available.
Classification of transactions States which SAP GUI is supported by a particular transaction.
Client A unit within an SAP System, self-contained from the points of view of
commerce, organization, and data.
Component system Umbrella term for the mySAP.com systems integrated into the Workplace
Composite role Collection of single roles: a new menu is structured around the menus from
the single roles.
Cookie Small text files or character strings that the Web server sends to the Brows-

er. They are used to register user behavior (passwords, personal data, which
pages the user calls up most often). In the context of the Workplace, cookies
are one of the options for implementing Single Sign-On.
CRM Customer Relationship Management: umbrella term covering all aspects of
business relationships with customers with the aim of fostering long-term
customer loyalty.
CSS Cascading Style Sheet: enhancement that provides greater flexibility in the
design of HTML pages and enables you to define frequently-used format
templates and font types once only.
CUA Central User Administration: a system group includes several SAP systems
with several clients. The same users are often created and the same roles
assigned in each client. Central User Administration is designed to perform
these tasks in a central system and distribute the data to the systems in the
system group.
Customizing Settings that you need to make when implementing a system, for example,
to adjust the company-independent functions provided to the business re-
quirements specific to your company.
Digital certificate Dynamic Information and Action Gateway: protocol for communication
between the SAP GUI and the application server (also known as the SAP
GUI protocol).
DlAG Digital document that contains the information required to verify a users
identity and the keys used for encrypting and decrypting messages. The
most commonly used format for client certificates is the X.509 standard. In
the context of the Workplace, cookies are one of the options for implement-
ing Single Sign-On.
DME Data medium exchange
Drag-and-drop You can use Drag & Drop to select objects in one area (source) with the
mouse and then move them to another area (target).
Drag-and-relate Browser-based navigation tool that enables you to link data from one appli-
cation with another application. This includes both SAP applications and
applications on the Web.
Drag-and-relate servlet Processes information requests that are launched in the mySAP.com Work-
place system landscape from a source system using Drag & Relate.
EAI viewer Enterprise Application Integration is a set of technologies that allows the
movement and exchange of information between different applications and
business processes within and between organizations.
ECL viewer Optional component for visualizing files in cFolders
EDI Electronic data interchange
ERP Enterprise Resource Planning: ERP systems ensure enterprise-wide resource
planning by using targeted workflow management. ERP includes back-
office systems such as, for example, production, financial, human resource,
sales and materials management systems.
ESA Enterprise services architecture
ESS Employee Self-Service: enables employees to be actively involved in hu-
man resource business processes. Employees can display, create and main-
tain certain types of data, anytime and anywhere with an easy-to-use Web
browser.
EWB Engineering Workbench
Field attribute In Central User Administration, you can specify a field attribute for every
element of the user master data. This defines the system in which you must
maintain that field entry and how the entry is distributed to the relevant
component systems.
Firewall Protects a local network against unauthorized outside access.

Flow logic Flow logic is a programming model provided by the Internet Transaction
Server for creating Web applications and it is stored as a file in XML-
enabled format on the AGate.
Frame A WWW page can consist of several HTML pages that are separated by
visible or invisible frames.
Front End Work station
Global user manager In the Global User Manager, the system administrator in the central system
has an overview of all the users in the system group, existing user groups,
the systems in the system group and roles. The system administrator can use
this overview to make changes and distribute them to the relevant systems.
GSS-API Generic Security Services: standardized security interface with a standard
communication model for abstracting from the individual products and their
characteristics.
GSS-API V2 Standard interface for security functions that are used by SNC.
GUI Graphical user interface
HTML Hyper Text Markup Language. Contains formatting instructions (that the
Web browser can interpret) and links to other documents or objects.
HTML Business SAPs own macro language that includes statements used to merge R/3 data
dynamically into the HTML business templates of Internet applications that
are driven by the Internet Transaction Server (ITS).
HTTP HyperText Transfer Protocol: protocol between the Web server and the
Web client.
HTTPS Hyper Text Transfer Protocol Secure Sockets. Data packets that are trans-
ferred using an HTTPS connection are encrypted using SSL.
IAC Internet Application Component: easy-to-use application in the mySAP.com
Workplace. These components enable even first-time users to execute sim-
ple Web applications.
IDES Internet Demonstration and Evaluation System that contains model compa-
nies to map the relevant business processes in the mySAP.com system.
Incoterms International Commercial Terms
Internet Business Frame- Enables the integration of users, applications and data distribution by sup-
work porting XML on all architecture levels. Cross-company business processes
can be triggered at Workplace level from various internal applications and
external Internet services.
ISAPI Internet Server Application Programming Interface: Microsoft software
interface for application programs for creating Web applications.
ITS Internet Transaction Server: interface between the component systems and
the Internet. The ITS enables Internet and intranet users to communicate
directly with SAP systems by starting business transactions, function mod-
ules and reports as Internet applications. It consists of two main components
the WGate and the AGate.
KW Knowledge Warehouse: integrated environment for creating, translating,
presenting, distributing and administering multimedia content. The
Knowledge Warehouse provides a comprehensive range of tools and func-
tions to support corporate knowledge management and transfer.
LaunchPad Role-specific list of activities in the Workplace containing links to SAP
components and to the Web.
LIS Logistics information system
Logical system System on which applications that are integrated and have a common data-
base run. In the SAP environment, this corresponds to a client in an SAP
System.
LTI Long Term Incentives
Marketplace Electronic marketplace that companies use to provide information, content

and products.
Migration Data transfer from one software system to another (for example, master data
and transaction data).
MiniALV List display in a small display area of the browser window. The MiniALV
(SAP List Viewer) can be used either as a MiniApp in its own right or as
part of another MiniApp.
MiniApp Intuitive, easy-to-use Web application or Web document. When the user
starts the mySAP.com Workplace, MiniApps provide the user with an over-
view of and access to his or her most important information on the initial
screen. The WorkSpace can contain several MiniApps.
MPS Master Production Scheduling
MRP Material Requirements Planning
mySAP Business Suite SAPs comprehensive solution concept for optimum integration of all rele-
vant business processes on the Internet. mySAP Business Suite provides
seamless, complete integration between SAP solutions and non-SAP sys-
tems across all business processes, thereby, delivering a complete e-
business environment.
NSAPI Netscape Server Application Programming Interface: Netscape software
interface for application programs for creating Web applications.
OLAP Online Analytical Processing
OLE Object Linking and Embedding: enables objects from one application to be
linked to another application.
OLTP Online Transaction Processing
One-Step Business Dovetailing of business processes between business partners, for example,
using a marketplace.
Partner profiles Definition of parameters for the electronic interchange of data with a trading
partner using the IDoc interface: which message is interchanged how in
which direction?
Plug-In Additional program that enhances a software systems functionality.
Portal Pages that serve as initial screens for Internet users immediately provide
relevant information and form a platform for visiting other Web sites.
PortalBuilder ITS service responsible for the HTML page structure. The PortalBuilder
also takes over role-dependent administration of the LaunchPad and Min-
iApps. The PortalBuilder communicates directly with the Workplace Server
for displaying the Workplace on the front-end.
Profile (Authorization) Summarizes authorizations. A user s authorization profiles are stored in the
user master record.
Protocol Collection of rules for formats and types of data transmission between dif-
ferent computer systems.
Remote system Independent system in a different location with which your system can
communicate.
Repository Central storage facility for all ABAP Workbench development objects.
RFC Remote Function Call: SAP interface protocol, based on CPI-C. An RFC
enables you to call and execute predefined functions in a remote system or
even in the same system.
Role In the mySAP.com context, a role is a collection of activities that are re-
quired for participation in a business scenario. The Workplace offers a role-
based view of all functions that the user requires for his/her business scenar-
io.
Role maintenance You can use the Profile Generator to create authorization profiles based on
the activities (transactions) contained in a role.
SAP English: Systems, Applications, & Products in Data Processing
German: Systeme, Anwendungen, Produkte in der Datenverarbeitung

French: Systmes, applications et produits dans l'informatique

Italian: Sistemi, applicazioni & prodotti nell elaborazione die dati
SAP DCOM Distributed Component Object Model: standardized basis for creating and
integrating distributed software components. External client applications
can use DCOM as the infrastructure for communicating with SAP servers if
they need to access mySAP.com components.
SAP Easy Access Navigation menu providing a user-specific initial screen for SAP Systems.
SAP GUI for HTML GUI that runs in the Web browser and dynamically generates HTML pages
based on SAP screens.
SAP GUI for JAVA Platform-independent GUI, requires a JAVA environment on the PC.
SAP GUI for Windows GUI for 32-Bit-Windows
SAP Service Marketplace SAPs global information and communication network
SAP Web Studio PC tool for developing Internet applications that are driven by the Internet
Transaction Server (ITS) and access data from the SAP System.
SAPGUI Graphical user interface for SAP
SAProuter SAP program that acts as part of a firewall system. It enables the routing of
traffic to and from the SAP network.
SEM Strategic Enterprise Management: group of tools and processes enabling
managers to introduce company-wide value-oriented management proce-
dures.
Session handling Session handling in the mySAP.com Workplace enables you to have several
sessions open at the same time. The user works with several browser win-
dows, all of which are directly displayed as frames in the mySAP.com
Workplace.
Single role s. role
Single sign-on Mechanism that removes the need for users to enter a password every time
they log on to a system. The user only needs to enter a password once and
can then log on to all systems that are part of the Single Sign-On environ-
ment.
SIS Sales information system
SMTP Simple mail transfer protocol (internet email)
SNC Secure Network Communication: software layer in SAP systems that ena-
bles them to communicate with an external security product. The external
product can protect the communication links between the components of an
SAP System.
SOAP Simple object access protocol
SSL Secure Sockets Layer: protocol that uses powerful authentication mecha-
nisms and encryption to protect data transmitted over the Internet.
SSO Single sign-on
System infrastructure The system infrastructure defines the systems and clients required for the
implementation and maintenance processes and their significance as well as
the transport routes between the systems.
TCO Total cost of ownership
TCP/IP Transmission Control Protocol/Internet Protocol: software protocol that
defines communication between computers.
Template Templates are used for certain types of HTML documents to ensure con-
sistency or provision of functions.
Ticket Authentication used for Single Sign-On (SSO) in the mySAP.com Work-
place. The central Workplace server gives the user an SSO Ticket. This
ticket is then verified by the component systems to allow the user access
without having to enter the user ID and password again.
Transaction Logically self-contained action in an SAP System. From the users point of
view, a transaction represents one unit (for example, changing a customer

address).
URL Uniform resource locator: internet address (e. g. http://www.mysap.com)
User interface Work station
User master record/ Records with important master data of a particular user in SAP. User master
User master data records are used to assign user menus including particular authorizations for
activities to a user.
VBM Value based management
WAP Wireless Application Protocol: protocol that defines the transmission and
display of special Internet content on devices with limited display capabili-
ties, for example, cell phones.
Web application builder Tool for developing Internet applications driven by the Internet Transaction
Server (ITS). You can use the Web Application Builder to create all the
files required to run an application on a Web browser.
Web browser Simple navigation program with GUI interpreting and displaying html doc-
uments from the internet.
WebDav Web-based distribution authoring and versioning: http-extension enabling
the joint access of documents via internet.
WebFlow SAP WebFlow enables the running of SAP business workflow via internet.
WebServer Server managing connections to the internet.
WGate WebGateway: component of the internet transaction server (ITS); connects
the ITS with the web server. WGate receivers queries from the web browser
via web server and forwards them to AGate.
Wizard Software assistant displaying instructions for running particular actions
within applications.
WML Wireless markup language: internet standard language to characterize pages
for mobile WAP devices.
Work item Runtime representation of steps to define a workflow or task.
Workflow IT-enabled processing of structured, interrelated and repetitive business
processes.
Workplace Role-based, personalized web browser portal for SAP systems, external
systems and internet applications.
Workplace middleware Communication software on a server replicating, synchronizing, monitoring
and distributing data between the center (network) and external users, e.g.,
business warehouse or mySAP ERP system.
Workplace middleware Part of the workplace architecture consisting of a web server, an internet
transaction server and optional drag-and-relate services.
Workplace server Main server to store information about the workplace user roles.
WorkSpace Right hand side of the mySAP.com workplace browser window displaying
MiniApps, Transactions and web sites.
XML Extensible markup language: standard for the definition of individual dis-
play languages characterizing structured information with tags. Like html,
xml is a link-oriented language for internet content.

Introduction
1 Introduction
This introduction script will give you an overview of SAP ERP and the required capabilities
to deal with this complex standard software.
In chapter 2 Enterprise Resource Planning with SAP ERP, you will familiarize yourself
with
- the software producer SAP,
- the differences of SAP R/3 and its successor SAP ERP and
- the technical platform for SAP ERP, i.e., SAP NetWeaver.
In chapter 3 Overview of SAP ERP, you will get a short introduction to

- the SAP ERP organization structure,
- foundations of master data and transactions and
- the technical foundations of SAP ERP analytics.
Those remarks will enable you to process further units and case studies, since you gain basic
theoretical knowledge on the system.
In chapter 4 The Model Company IDES, you will find an excursus briefly outlining the
model company IDES. Being an SAP-created sample for education purposes, all relevant
business processes of SAP ERP can be implemented in IDES.
In chapter 5 Handling and Navigation in SAP ERP, you will be actively involved with
the SAP ERP system for the first time. You learn how to use the SAP Graphical User Inter-
face (GUI) by using the different navigation methods and the integrated help function. Final-
ly, you will work on a navigation case study that will enable you to process case studies on
your own.
Educational objectives in chapter 2:

- know SAP company and history
- list the differences between SAP R/3 enterprise to its successor SAP ERP
- explain SAP ERP architecture
- understand the core functionality of SAP ERP solution within the SAP Business Suite
- explain the purpose of Enhancement Packages
- describe the SAP NetWeaver platform
- list the IT Practices enabled by SAP NetWeaver
- describe the strategic advantage of NetWeaver

- explaining SAP ERP organizational model
- explaining functionality of SAP ERP master data and transactions
- explaining SAP ERP analytics

Introduction
- familiarize with IDES AG

- insight into organizational structure of IDES AG
- brief information about UCC (University Competence Center)

- handling of the SAP ERP system and navigating in the SAP ERP system

Enterprise Resource Planning with SAP ERP
2 Enterprise Resource Planning with SAP ERP

This chapter gives you an overview of the software producing company SAP and its main
product SAP ERP.
2.1 Excursus: SAP The Company

SAP AG (German: Systeme, Anwendungen, Produkte / English: Systems, Ap-
plications, Products) was founded in 1972 by five former IBM employees. To-
day, SAP is the third-largest independent software vendor. SAPs head office is
located in Walldorf, Germany. As originator and market leader for enterprise
application software, SAP employs over 54.000 people worldwide, over 11.000
of which work in the head office in Walldorf. In addition to the main development center in
Walldorf, SAP maintains, amongst others, branches in Palo Alto (USA), Tokyo (Japan), Ban-
galore (India) and Sophia Antipolis (France) as well as in Berlin, Karlsruhe and Saarbrcken
(Germany). Today, SAP has sales and development locations in more than 50 countries
worldwide.
In 2011, SAP generated a provisional turnover of 14.232 billion Euros. SAP AG is listed at
diverse stock exchanges, e.g., DAX and NYSE. SAP services 183.000 customers with numer-
ous installations of SAP products. 12 million users in more than 120 countries use SAP prod-
ucts in 28 different languages. SAP applications and services enable more than 183,000 cus-
tomers worldwide to operate profitably, adapt continuously and grow sustainably. With over
2.900 certified Partners and more than 25 business solutions and industry solutions, e.g., for
automotive and pharmaceutical businesses, SAP helps companies of all sizes and industries
run better.
A brief selection of SAPs customers:
- General Motors Corp.
- Bayer AG
- Discovery Channel
- DHL
- Callaway
- Asics
- BP
- Shell
- Deutsche Telekom AG
- Siemens AG
- Porsche AG
- Daimler AG
- Audi AG
- Deutsche Post AG

Figure 1: Annual Report 2011 (1)
Milestones of SAP history

Since the founding in 1972, software engineering regarding ERP has advanced constantly.
The biggest milestone of SAP AG was the going live in 1992 with the SAP R/3 system. R/3
means that transactions and the processing of transactions, respectively, can be conducted in
real-time. Since 1993 there has been a cooperation agreement between Microsoft and SAP for
the porting of the R/3 system to Windows NT, which was accomplished in 1994.
The development of a user-friendly GUI was carried out in 1998 with Enjoy SAP. Since
1999, mySAP.com has existed, allowing the connection of e-commerce applications with pre-
sent ERP applications. The software products mySAP ALL-in-One and SAP One Server were
introduced in 2002.
The latest generation of ERP software by SAP is called (my)SAP ERP (the prefix my will
presumably be dropped for future releases), focusing on the inter-company integration of en-
terprise software with the connection over SAP NetWeaver. As the introduction of SAP R/3
in 1992 was a migration from mainframe computing to client/server architecture, SAP
ERP/NetWeaver is another paradigm shift with the migration to service-oriented architectures
(SOA) to preferably integrate all present systems and gradually transfer them into the new
system landscape. This is to ensure the value of all prior investments of a customer, partially
reflected in the latest SAP AG license agreements.

Figure 2: Milestones of SAP

2.2 Theory: SAP R/3, SAP ERP and SAP NetWeaver

In this chapter you will learn about the software products SAP R/3, SAP ERP
and SAP NetWeaver. The focus is on both theoretical foundations as well as
important fundamental terms with respect to the case studies.
What is Enterprise Resource Planning?

Modern companies, especially big and mid-size ones, have complex
organizational structures, many resources to be controlled and administrated,
processes to be integrated within the company and with external partners as
well as huge amounts of data and information that must be available 24/7.
Enterprise resource planning (ERP) systems are integrated computer-based systems used to
manage all these issues within a company. ERP Systems are used to manage internal and
external resources. That includes tangible assets, financial resources, materials and human
resources. From a technical point of view, ERP is a software architecture whose purpose is to
facilitate the flow of information between all business functions inside the boundaries of the
organization and manage the connections to outside stakeholders. Built on a centralized
database and normally utilizing a common computing platform, ERP systems consolidate all
business operations into a uniform and enterprise-wide system environment. SAP was one of
the first companies, and up to present days the most successful one, to introduce a standard
software that helps companies in managing their daily work. The term standard software
refers to the possibility to customize preconfigured standard structures and processes to
meet a companys needs.
2.2.1 SAP R/3

SAP R/3 was the most successful product throughout the history of SAP, dominating the
market for ERP-software during the 1990s and establishing the basis for SAPs current
success on the world-wide ERP-market today.
In its basic version, SAP R/3 is an integrated, branch-neutral standard software covering
almost all business purposes that might exist in a company. The flexible adjustment to
company-specific requirements is referred to as customizing in SAP R/3 (and all other SAP
systems). Diverse application modules (FI, CO, TR, etc.) can be added to the present basic
module (SAP Basis indicated as the blue hexagon in the following figure) to eventually
achieve complex branch-specific modules. The particular units are visualized in the following
figure.

Figure 3: SAP R/3 modules: Nicolescu/Wittges 2006
We will hold our discussion on detailed module description at this point. This monolithic
structure of the unitized design was a proper solution to include all relevant business process-
es back in the 1990s; however, new requirements for companies revealed a lack of flexibility
of this design. Especially with respect to the integration of external systems (non-SAP sys-
tems), of customers and vendors of the supply chain, a new way to represent business pro-
cesses became necessary.
2.2.2 SAP ERP

With increasingly globalizing markets, competition changes constantly and requires compa-
nies to adjust quickly to those new conditions. A vital factor for success is the time needed for
a company to flexibly adjust their business processes, operations and information flow along
the inter-company supply chain to improve efficiency and integration as well as improve
transparency to achieve more effective business processes.
It is imperative today, more than ever, to ensure that the business processes in an organization
are integrated, streamlined and transparent. SAP ERP allows companies to gain better control
of their administrative and operations environment and increase efficiency and profitability.
Furthermore, the application drives down the costs of integration and deployment by shorten-
ing time to benefit and leveraging existing IT investments.
SAP ERP is a standard software package that covers all vital business processes within a
company and provides functions for both corporate headquarters and small subsidiaries. SAP
ERP is a combination of components that integrate people, information and processes com-
prehensively and flexibly. Thereby, it is designed in such a way that companies can imple-
ment only the business functions they need when they need them, thus, simplifying upgrades
and reducing total cost of ownership.

SAP ERP is embedded in SAP NetWeaver, which is the basis for almost all SAP products.
The following figure displays the integration capabilities of SAP NetWeaver. You can inte-
grate almost every business application with SAP ERP by using SAP NetWeaver technology.
Therefore, it is possible to integrate Independent Software Vendor solutions, self developed
software solutions or non-SAP solutions. Furthermore, Java and .Net-Frameworks are inte-
grated with SAP NetWeaver.
Figure 4: SAP ERP
With SAP ERP, SAP has set a new standard for ERP systems. It provides the applications to
cover the main functional areas of every company from an information technology point of
view. This solution incorporates SAP ERP Financials, SAP ERP Human Capital Man-
agement, SAP ERP Operations and SAP ERP Corporate Services solutions.
- SAP ERP Financials: The aim of this solution is to utilize a companys funds effec-
tively and, therefore, increase profitability in the long term.
- SAP ERP Human Capital Management: Every company has employees. They are
important resources and SAP ERP HCM enables a company to utilize them effectively
toward achieving company goals. This solution covers all aspects of human resources,
from recruitment and training through payroll.
- SAP ERP Operations: SAP ERP Operations provides an extensive operations solu-
tion for automating and streamlining procurement and logistics execution, product de-
velopment and manufacturing and sales and service.
- SAP ERP Corporate Services: SAP ERP Corporate Services introduces service solu-
tions for end-to-end life cycles for travel management, environment, health and safety
and real-estate management. It also addresses the development of efficient incentive
programs.

2.2.2.1 From SAP R/3 to SAP ERP

Starting in the 1970s, there have been major technology waves from mainframe computing
to client server architectures and now from client server technology to service oriented archi-
tectures
In 1992, SAP R/3 was introduced as successor of SAP R/1 and SAP R/2 featuring a two-layer
architecture (technology layer: SAP Basis; application layers: modules like FI, CO, etc.). SAP
R/3 required extensive changes as well as complex and time-consuming interface configura-
tions and maintenance upon release changes. One disadvantage of this architecture was that
customers of SAP had to upgrade both layers when implementing a new release of SAP soft-
ware, which caused a complete replacement of the underlying IT infrastructure. In contrast to
that, SAP ERP with its service-oriented architecture offers an extensive solution, which pro-
tects investments in existing IT infrastructure and systems. Since SAP ERP is based on SAP
NetWeaver, future solutions and new systems or applications can be easily integrated into
SAP ERP, without the need to replace the underlying platform or technology.
SAP ERP Central Component (SAP ECC) is the evolutionary successor of SAP R/3 and it is
the main component of the SAP ERP solution. SAP ERP ECC 6.0 is the latest version of
SAP's ERP solution. Figure 4 shows that this solution is no longer based on the core compo-
nent SAP Basis, but the complete integration into the SAP NetWeaver concept is in place.
For each new release of SAP R/3 and later SAP ERP, the functions of the software have been
extended, applications have been optimized and interfaces to other software components have
been enhanced. SAP R/3 was developed by using ABAP, SAPs own programming language.
In SAP ERP, ABAP has still a dominating role but Java-based applications and XML-based
Web Services (service-oriented architecture of SAP NetWeaver) are becoming more and more
important in new ECC releases.
Along with other SAP components, SAP R/3 Enterprise is included in SAP ERP as well. That
is why customers wanting to upgrade their present SAP R/3 Enterprise to SAP ERP are not
required to perform technological changes. With the introduction of SAP ERP in 2003, many
new components are available to support and enhance ERP business processes. At that time,
SAP R/3 Enterprise was one of those components. As you can see in the following figure,
SAP ERP at that time already consisted of more components than merely SAP R/3 Enterprise
and SAP NetWeaver and featuring many new functional enhancements, e.g., self-services,
SAP SEM, Internet Sales, etc.

Figure 5: From SAP R/3 to SAP ERP
Please note that SAP ERP is not meant to be a remake of R/3 but a solution for a service-
oriented architecture. As opposed to SAP R/3 (monolithic structure, applications were linked
to the business logic), SAP ERP is based on the open, service oriented architecture of SAP
NetWeaver. The technology platform allows SAP R/3 customers to overcome the costly and
timely problems of real-time business regarding integration of application and external sys-
tems as well as maintenance of interfaces.
2.2.2.2 SAP Business Suite

When a company grows, processes usually become more complex and software requirements
change. SAP Business Suite offers additional solutions that compliment, enhance and support
the processes that are executed in SAP ERP. You can see from the following figure that SAP
ERP is a solution within the SAP Business Suite and that all products of SAP use SAP
NetWeaver as technical platform.
The SAP Business Suite is based on the demand of customers or customer groups and on
contributions of analysts and leading experts to allow customers to successfully face chal-
lenges on the market. The solution embraces business requirements, tactical requirements and
strategic requirements within and beyond a company, ensuring inter-company collaboration
amongst partners.

Figure 6: SAP ERP is a solution within SAP Business Suite
SAP Business Suite is a complete package of enterprise solutions that link people, infor-
mation and processes and, therefore, improve the effectiveness of business relationships. It
consists of individual SAP solutions. SAP Business Suite features the following business so-
lutions that need to be licensed separately:
- SAP ERP SAP Enterprise Resource Planning
- SAP CRM SAP Customer Relationship Management
- SAP PLM SAP Product Life-Cycle Management
- SAP SRM SAP Supplier Relationship Management
- SAP SCM SAP Supply Chain Management
All SAP solutions are based on the new service-oriented architecture paradigm. Accordingly,
SAP Netweaver is the technical platform that powers the SAP Business Suite. SAP NetWeav-
er will be discussed in the next chapter.
2.2.2.3 SAP Enhancement Packages

Starting with SAP R/3 Enterprise, changes and enhancements to the software were integrated
into the system as extensions. With the new SAP ECC 6.0, SAP distributes new features and
applications by using enhancement packages. This new software strategy accelerates and sim-
plifies the upgrade process and adaptation to industry sectors.
SAP enhancement packages represent a new software delivery strategy that allows a company
to add innovations on top of SAP ERP 6.0. Thereby, there is no need for a full upgrade of the
current release of SAP ERP. The main reason for SAP to introduce SAP enhancement pack-
ages for SAP ERP is to simplify the way customers manage and deploy new software func-
tionality. With the enhancement packages, customers can electively implement these software
innovations from SAP and activate the software according to business demand. As a result,

customers can isolate the impact of software updates and bring new functionality online more
quickly through shortened testing cycles.
SAP enhancement packages are currently available for SAP ERP and SAP NetWeaver. They
are planned for other Business Suite applications as well.
From a content perspective, each enhancement package either focuses on a dedicated set of
business processes that are improved or adds new processes to the SAP ERP Solution Map.
Those improvements are grouped thematically, which a company can install with a new ap-
proach. The new capabilities, included in an enhancement package, focus on the following
four areas:
- Simplification: new capabilities designed to simplify business processes as well as
user interfaces
- Generic enhancements: new generic capabilities for Financials, Human Capital Man-
agement, Operations and Corporate Services
- Industry-specific enhancements: new capabilities delivered for particular industries
- Enterprise Service Bundles: New enterprise services that illustrate the value of the
service-oriented architecture along business scenarios and needs, extending the func-
tionality of SAP ERP and enabling innovative composite applications to be developed
on top of SAP ERP.
Figure 7: Enhancement Packages
With enhancement package delivery technology, SAP provides customers with new develop-
ments and enhancements of applications for their existing SAP installations. This means that
they can use new developments that are offered for their business processes when they want
to and according to their own requirements.
SAP enhancement packages are optional packages that enable companies to take advantage of
ongoing innovations while keeping their core software stable, rather than engaging in large
upgrade projects. Each SAP enhancement package provides a collection of new or improved

business functions. Companies can deploy the enhancements in a modular fashion by activat-
ing only the new features and functionalities they want on their own timetable.
SAP Best Practices have a few of these highlights pre-configured such as New General Ledg-
er and Analytics, others need to be evaluated on a project basis.
SAP enhancement packages allow updating a subset of the software components that are part
of an existing SAP ERP 6.0 implementation. For example, a company is now able to update
parts of its SAP ECC Server. The selection of software components is driven by the function-
al enhancements that the company plans to implement. The following figure displays how
new HCM functionalities (Selective Update - Example) are installed by updating only EA-HR
(version 602) on the SAP ECC Server. Thereby, the enhancement package is "set on top" of
the existing SAP HR application.
Figure 8: Quick Facts to enhancement packages
The following key points summarize important facts about the enhancement package concept
and recommended approaches:
- SAP enhancement packages are cumulative, which means that each new enhancement
package includes new innovations of its own as well as all innovations delivered with
previous packages.
- SAP recommends that you install the latest available enhancement package version.
- You install enhancement packages and Support Packages in a single step.
- SAP enhancement packages have their own Support Packages, starting with Support

Package Version 01, which are equivalent to the Support Package versions for the
underlying release.
- SAP enhancement packages have the same maintenance period as the underlying core
application, SAP ERP 6.0.
- You install only selected parts of the enhancement package. The selection is driven by
functional need from a business point of view.
- Installations of enhancement packages, as well as the activation of business functions, are
irreversible. Test the installation process and activation of new functions in advance on a
sandbox system. Ensure that you evaluate the runtime and the system behavior, its
dependencies and impacts. Make sure that the installation is free of errors before going
live.
- Installation of an SAP enhancement package has no impact on existing business processes
or user interfaces as long as no business function has been activated. Activation of
business functions is only possible in ABAP-based systems and not in Java-based
systems. Enhancement Packages in Java-based systems are active after installation.
Enhancement Packages of SAP NetWeaver are active after installation. It is not possible to
mix the installation of different enhancement package versions in your ABAP system. Only
one enhancement package version is allowed.
Figure 9: Things You Should Know Before Installing SAP Enhancement Packages
2.2.3 SAP NetWeaver

As mentioned earlier, SAP ERP is a flexible successor due to its service-oriented structure. It
is modeled on enterprise service architecture in which business applications may interact with
each other via open interfaces. This construction principle is quite demanding when it comes

to technical infrastructure. An open application and integration platform is required for calling
technical applications and seamlessly integrating external third-party systems. SAP NetWeav-
er covers this key role and is, thus, the company-wide infrastructure for all business applica-
tions.
2.2.3.1 Overview of SAP NetWeaver

SAP NetWeaver is a Web-based, open integration and application platform. It is the founda-
tion for service-oriented architecture (SOA) and provides the integration and alignment of
people, information, and business processes across business and technology boundaries.
Thereby, SAP NetWeaver uses open standards to enable integration with information and
applications from almost any source or technology.
One main advantage of using open standards and a uniform basis, which can operate or inte-
grate all company systems is the considerable reduction of the total cost of ownership not
only for SAP solutions, but for the entire IT landscape. SAP NetWeaver helps companies to
use existing IT investments in a way that adds value while also creating a foundation for fu-
ture cross-enterprise processes.
Figure 10: SAP NetWeaver
2.2.3.2 Excursus: Service-oriented Architecture and Enterprise Service Architecture

The term Service-oriented architecture (SOA) has been mentioned now sever-
al times in connection with SAP ERP and SAP NetWeaver.

What is Service-oriented architecture?

SOA is an IT concept aiming at supporting business processes. Therefore, the old monolithic
structures like in the R/3 system are broken up into small reusable components that hold the
business logic. Those encapsulated services can be interlinked to handle complete business
processes. Thus, services may be used within distinct processes.
A decisive advantage of those services (also known as Web Services) is that they are based on
well-known standards and that many software companies, e.g., Microsoft, IBM, Sun and
SAP, agreed on furthering Web Service standards. Those standards are combined in the Web
Service standard stack. This includes:
- XML (eXtensible Markup Language): specification language for data contents
defining both data as well as corresponding metadata.
- SOAP (Simple Object Access Protocol): method and function call of remote
applications using XML as basis language.
- UDDI (Universal Description, Discovery and Integration Services): directory to locate
Web Service functionalities.
- WSDL (Web Service Description Language): specification for describing Web
Service interfaces.
- BPEL/BPEL4WS (Business Process Execution Language/for Web Services):
specification language defining the sequence and conditions for the interaction of
services to implement (parts of) business processes.
Those specifications allow Web Services to interact with each other.
What does this stack of standards mean concretely?

Imagine a sales process is executed in an ERP system and one of the sales process steps is to
check the customers credit status. A remote program module can, for example, prompt an-
other application to look into somebodys creditworthiness. Therefore, the remote program
seeks a matching service by using the UDDI directory. After finding a service that provides
credit-check-functionality, information about interfaces, parameters, etc., of the service may
be conveyed to the remote program in WSDL. The remote program can now call the service
by using SOAP. The service is then executed and the calling ERP system receives the results.
In that way, the mapping of a particular business process can be accomplished by using mul-
tiple series-connected services. The communication between the services is enabled due to
standardized protocols. Since services can interact and communicate with each other, there
are no disruptions and, thus, the process is independent of systems, platforms and infrastruc-
ture, being processed only by machines.
To simplify this, one can say the software packages (services) understand each other, since
they speak the same technical language (XML). Due to the consequent use of the standards
in that stack, they know exactly how to interact with each other. Furthermore, note that you
can use a service in multiple processes, enhancing the re-usability of a service. For instance, a
credit-check-service may be used in a sales process as well as in a personnel hiring process.
Enterprise Service Architecture (ESA)

The consequent implementation of the Web Service concept was addressed by SAP with its
Enterprise Service Architecture. Multiple enterprise services are combined in composite ap-
plications and delivered as packaged composite applications, i.e., as so called xApps, which

represent complex business functionality. Next is a list of the hierarchy, starting with a single
service to a complete xApp:
1. Service: simple function

2. Web service: web-compatible function
3. Application service: consists of a Web Service making services from an application
available.
4. Enterprise service: consists of one to N application services and serves as inter-
application Web Service to abstract business.
5. Composite application: complex application consisting of enterprise services.
6. Packaged Composite Application: packages of composite applications from a software
company.
7. xApps: composite application created by SAP or partners.
Currently, SAP, SAP partners and third party providers cover multiple business processes
using xApps. However, more time is required before a complete coverage of business pro-
cesses using xApps can be accomplished. Nevertheless, even today SAP offers many Best
Practice solutions based on xApps.
Figure 11: SAP Enterprise Service Architecture
Note: End of Excursus!
2.2.3.3 SAP NetWeaver Integration Layers

SAP NetWeaver is the technical foundation on which almost all SAP solutions are currently
based. It provides core functions for the infrastructure of a companys business solutions in
four subareas (Integration Layer) including

(1) People Integration

(2) Information Integration
(3) Process Integration
(4) Application Foundation
Figure 12: SAP NetWeaver
These SAP NetWeaver subareas contain multiple capabilities, which are explained in the fol-
lowing.
Figure 13: Integration Levels of SAP: Employees, Customers and Partners - Functions of SAP NetWeaver
in the Area of User Productivity

Integration level: People Integration
Employees, Customers and Partners - Functions of SAP NetWeaver in the area of User
Productivity
People integration is the top-level integration layer of SAP NetWeaver and is the point-of-
access to SAP (regardless if it is an ERP, a BW or CRM system, etc.) and Non-SAP systems.
It combines functions that users need for their every-day work, regardless of whether it con-
cerns one system or applications on many distributed systems. Since access to the portal is
role-specific, it can be used for customers, vendors or employees in equal measure.
Along with functions in the area of Mobile Business and Search, like they are provided
through the Enterprise-Search-Application, the SAP NetWeaver Portal is the central compo-
nent in the area of User Productivity.
The portal (SAP Enterprise Portal) is a single point of contact and access to all sources of in-
formation and is, thus, a consistent user interface for accessing applications of a business pro-
cess with all role-specific content and personalization functions. All SAP-systems, data ware-
houses, desktop files, web content, Web Services and third-party systems of an enterprise are
comprised in one single GUI. Using single sign-on, a facilitated method for authentication
and communication processes between different IT systems is implemented. Furthermore,
portal knowledge management can be used to transform unstructured data into important
company information. The collaboration function facilitates inter- and intra-company group
efforts.
SAP NetWeaver Mobile

SAP NetWeaver Mobile is a technology solution of SAP NetWeaver on which, a set of mo-
bile applications are based. These applications are called SAP xApps composite applications
for mobile business" and mostly are extensions to existing non-mobile SAP applications.
For instance, there is an extension for SAP Human Resource Management, which allows cap-
turing travel data and working hours on a mobile device (e.g. Smartphone or Handhelds). Fur-
thermore, service employees can be informed about new tasks directly on their mobile devices
and they can transfer customer data directly from their mobile devices to the SAP system,
without having to access the SAP ERP backend system from their desktop computer at the
office.
Integration level: Process Integration
All operations and all work performed in a company are controlled through business process-
es. Along with these processes data is exchanged between employees. This data exchange can
be accomplished manually without any help from software. But it can also be supported by
software preventing data redundancies and data entry errors.
The term Process Integration encompasses a set of different requirements, which SAP
NetWeaver covers with its components. These requirements are:
- Modeling of business processes
- Customizing of applications that support a business process
- Data exchange between applications and systems within a business process

- Automation of business processes
The components that SAP NetWeaver provides for these purposes are, among others:
- Solution Manager: Supports system Customizing
- SAP NetWeaver Process Integration: Data exchange between applications and sys-
tems
- SAP Business Workflow, ccBPM, SAP NetWeaver Business Process Manage-
ment: Tools for process automation and modeling
Integration level: Information Integration
Information Management
SAP BusinessObjects BI and SAP NetWeaver Business Warehouse supports companies
with data collection and analyzing key figures. With these applications you can define goals
and monitor whether or not they are achieved. The analysis of business processes allows im-
proving your company's operations making them more efficient, reducing costs and enhancing
customer satisfaction. The tools provided by SAP NetWeaver BI and SAP BusinessObjects
BI can easily handle huge amounts of data and also allow end-users to create analyses and
reports fast and comfortably using Web-Reporting applications and publish those reports in
the internet or intranet. With SAP NetWeaver you can publish analyses in the Enterprise Por-
tal and use Knowledge Management functionalities like rating, feedback, notes, subscriptions
etc.
Master Data Management

If master data of a company are stored in different locations and systems, this can lead to re-
dundancies and inconsistencies. SAP NetWeaver Master Data Management (SAP MDM)
supports unified data storage across company branches in a heterogeneous IT landscape. It
permits common use of master data from systems that were originally different, and ensures
that the data is consistent across system boundaries, irrespective of the system location or
vendor. SAP MDM uses the technical basis of Process Infrastructure (Komponente SAP XI)
to distribute the data. Thereby, SAP NetWeaver MDM not only distributes the data but also
double-checks new master data for duplicates and also controls which data is transferred to
SAP BW for further analyses. This reduces the costs of data administration and data error
rectification significantly.
Data Management and Integration

Knowledge Management tools provided with the SAP NetWeaver Portal allows for structured
administration of company knowledge. The functions of Knowledge Management support
companies to structure Information (=Knowledge) and make this knowledge available for the
appropriate target groups. Knowledge Management functions include e.g. search, classifica-
tion and subscriptions. Depending on the technical conditions, these functions can be applied
to all contents of the integrated data sources.
Basis for Integration: Application Foundation

The technical basis for the integration platform SAP NetWeaver is the SAP NetWeaver Ap-
plication Server. It supports J2EE and ABAP in a single runtime environment. It allows you
to develop Web Services in a development environment, which supports all common stand-
ards like Simple Object Access Protocol (SOAP), Web Service Description Language
(WSDL) and Universal Description, Discovery and Integration (UDDI). New applications can
be defined based on Internet standards like HTTP, HTTPS, HTML, XML and JavaScript.
SAP NetWeaver is, furthermore, completely compatible with Microsoft.NET and IBM Web-
Sphere, which increases the potential of reusability of software significantly.
As of SAP Web AS 6.40 customers are provided with a Web Service Framework, which al-
lows creating and publishing of Web Services as well as executing applications and Enter-
prise Services.
2.2.3.4 IT Practices and IT Scenarios

With the latest release of SAP NetWeaver, SAP introduced a new implementation strategy.
This new strategy encompasses IT Practices and IT Scenarios. Thereby, IT Practices look at
the overall SAP NetWeaver platform in ways that focus on key business goals rather than on
isolated technology components. That is, an IT Practice utilizes functions across all SAP
NetWeaver layers (subareas described above) to implement an application or business pro-
cess.
The business goals that can be achieved through those IT Practices and IT Scenarios are fa-
miliar to almost any IT organization:
- The need to combine different integration technologies.
- The need to develop composite applications leveraging existing system investments.
- The desire to flexibly build new business processes.
IT Practices
With the SAP NetWeaver platform, a company can implement crucial IT Practices in a
flexible, step-by-step approach at low cost. Immediate IT needs can be addressed first and
since the platform components are tightly integrated, the practice projects can be expanded
over time within a sustainable cost structure.
SAP NetWeaver enables the following IT Practices. For each practice, SAP NetWeaver sup-
ports a variety of key IT activities, all of which are easy to perform using the platforms inte-
grated components.
- User productivity enablement: Helps users and groups improve their productivity
through enhanced collaboration, optimized knowledge management and personalized
access to critical applications and data.
- Data unification: Consolidates, rationalizes, synchronizes and manages all master
data for improved business processes.
- Business information management: Increases the visibility, reach and usefulness of
structured and unstructured enterprise data.
- Business event management: Ensures that business events from multiple systems are
distributed to the appropriate decision makers in the context of the relevant business
processes.

- End-to-end process integration: Makes disparate applications and systems work

together consistently to perform business processes.
- Custom development: Rapidly creates new enterprise-scale applications that drive a
companys differential advantage.
- Unified life-cycle management: Automates application management processes and
optimizes all facets of an applications life cycle.
- Application governance and security management: Maintains an appropriate level of
security and quality in your intellectual property and information assets.
- Consolidation: Deploys a consolidated technology platform with the ability to allocate
computing power according to changing business needs.
- Service-oriented architecture design and deployment: Consolidates and standardizes
basic processes and leverage existing investments to compose new, distinctive
business processes.
Figure 14: IT Practices
IT Scenario
An IT Scenario supports a process-oriented implementation approach. IT Scenarios quickly
and easily help to:
- develop, compose and run applications
- build, enhance and operate an IT infrastructure
- integrate people, information and processes

- implement a defined IT concept such as evolving a companys system landscape into a

services-based architecture
IT Scenarios break down the IT Practices, allowing an incremental approach to implementing

SAP NetWeaver functionality. Each IT Practice can be broken into one or multiple IT Scenar-
ios. It is not only that each IT Practice can be broken into one or multiple IT Scenarios, it is
also that some IT Scenarios belong to more than one IT Practice. For example, the IT scenario
Enterprise Search is listed under the IT Practices User Productivity Enablement as well as
Business Information Management.
Figure 15: IT Practices and IT Scenarios
2.2.3.5 Installable Units

IT Scenarios require functionality provided by SAP NetWeaver, which is organized into in-
stalled units. Installed units are building blocks and are composed of clients (like SAP
NetWeaver Developer Studio, Business Explorer or SAP GUI for Windows), standalone en-
gines (like Search and Classification, Job Scheduler or Content Server) and usage types.
Usage types are built from technical software components that form an installable and con-
figurable unit. They are reusable, installed and preconfigured units and can be built upon oth-
er usage types.
SAP NetWeaver includes a comprehensive set of components and tools.
Components
- SAP NetWeaver Application Server: Supports platform-independent Web services,
business applications and standards-based development, enabling a company to
leverage existing technology assets for Web-services-oriented solutions.

- SAP NetWeaver Business Intelligence: Enables a company to integrate data from

across the enterprise and transform it into practical, timely business information to
drive sound decision making. Although officially only SAP BusinessObjects products
should be branded with Business Intelligence, this name has not changed (yet).
- SAP NetWeaver Business Process Management: Provides tools to help a company
model, execute and monitor business processes based on a single, consistent process
model.
- SAP NetWeaver Process Integration: Delivers SOA-based technology that supports
process-centric integration across the extended value chain.
- SAP NetWeaver Master Data Management: Ensures cross-system data consistency
and helps integrate business processes across the extended value chain.
- SAP NetWeaver Mobile: Provides a "future-proof" mobile runtime environment based
on open and flexible technology standards and a powerful development environment
for building integrated mobile solutions with native or browser-based user interfaces.
- SAP NetWeaver Portal: Unifies critical information and applications to give users
role-based views that span the enterprise, enabling a company to take full advantage of
its information resources.
- SAP Auto-ID Infrastructure: Gives a company all the capabilities it needs to
integrate all automated sensing devices including RFID readers and printers,
Bluetooth devices, embedded systems and bar code devices.
- SAP NetWeaver Identity Management: Addresses access and provisioning issues
facing a typical enterprise, creates a new opportunity for integrating business
processes and helps a company to integrate systems in a heterogeneous IT
environment.
Tools
- Adaptive Computing Controller: Provides a central point of control for assigning
computing resources and optimizing their use.
- SAP NetWeaver Composition Environment: Provides a robust environment for
design, deployment and running of composite applications that comply with a service-
oriented architecture.
- SAP NetWeaver Developer Studio: Offers a convenient user interface and rich
functionality for developing J2EE applications.
- SAP NetWeaver Visual Composer: Simplifies the creation of portal content and
analytics applications, enabling business analysts to build or customize applications
using a visual user interface rather than manual coding.
- SAP Solution Manager: Facilitates technical support for distributed systems with
functionality that covers all key aspects of solution deployment, operation and
continuous improvement.
2.2.3.6 Advantages and Benefits of SAP NetWeaver

Some of the advantages of SAP NetWeaver are:
Openness and extensibility: SAP NetWeaver offers complete compatibility and extensibility
regarding IBM WebSphere and Microsoft.NET, i.e., technologies that multiple enterprises
invested in. SAP ensures interoperability with IBM and Microsoft solutions, supports devel-

opment strategies and distribution activities and also offers competence and support centers.
The integration of SAP NetWeaver with IBM and Microsoft solution is possible on all layers
and, thus, involves integration of people, information and processes. Hence, IT investments
and employee qualifications already in place can be used optimally.
Immediate integration: SAP NetWeaver enables the complete integration of a company on

all decisive levels. Additionally, SAP NetWeaver offers useful pre-configured business con-
tent. This ready for use content is available on all SAP NetWeaver layers and thus enhances
an enormous reduction of implementation time as well as expedite return on investment
(ROI). SAP NetWeaver features among other things the following business content:
- pre-configured portal content and pre-defined roles for an enhanced integration of
people
- reports and analyses for a faster information integration
- interfaces to link business processes in distinct backend systems
Lower total cost of ownership

The technology platform leverages a company's existing IT investments, since it integrates
these and includes systems that are already used in your company. SAP NetWeaver supports
the entire software life cycle of business-critical applications with the lowest total cost of
ownership. The technology platform is the result of SAPs 30 years of experience with relia-
ble enterprise solutions. This means that a company profits from high scalability, continuous
uptime and high security standards.
Figure 16: Advantages of SAP NetWeaver

2.3 Elucidation
What have we learned so far?
You gained a first look at what SAP as a company does, what products it sells,
and how these products are embedded in the SAP product portfolio (Business
Suite). There were some technical aspects discussed that seem to be very com-
plicated. However, you do not need to understand every last technical detail but
you should get a clear view on the big picture. Let us now paint that picture.
Enterprise Resource Planning (ERP)

- ERP is primarily a management concept, although its not clear if the scientific con-
cept or the real-world system was there first.
- ERP in a broad sense describes all management techniques, systems, processes, etc.
that are used to manage all types of resources in a company effectively and efficiently.
- ERP, in a close sense, means the usage of IT-systems to supply a companys daily
work with all necessary data. The IT-system maps organizational structures, processes
and data into a coherent perception in the form of software, to manage all the compa-
nys resources.
- The most important aspect of ERP-systems is Integration, through which
o No data redundancy occurs: e.g., a customer has only one customer record in
the system.
o All company departments use the same data records.
o Processes across a company and with external partners must be mapped with-
out discontinuity. For instance, if a company orders a raw material from its
supplier, an employee fills in a purchase order form in the ERP system. This
form is then transferred to the suppliers ERP system. All filled in information
(material, quantity, price, conditions, etc.) are mapped to the structure of the
order form of the supplier. There is no need for any employee of the supplier to
fill in any information manually (biggest point of errors!) that is the summit
of what an integrated process should look like, literally (systems communi-
cating with each other without any human engagement).
2.3.1 SAP R/3

- The most successful product in the history of SAP, when it comes to market domi-
nance.
- The main reason for SAPs success today.
- Module-based structure: that is, the SAP software is divided in two sections SAP Ba-
sis and the Application Modules (Finance (FI), Controlling (CO), Sales and Distribu-
tion (SD) etc.).
- Problem: this monolithic structure is not very flexible, since changes in a sub-
component require complete update of the module it belongs to. The same is true for
new releases of the software.

2.3.2 SAP ERP

- Latest version of SAPs ERP software SAP ERP ECC 6.0.
- Covers the following functional areas that can be implemented separately:
o SAP ERP Financials
o SAP ERP Human Capital Management
o SAP ERP Operations
o SAP ERP Corporate Services
- Service oriented architecture: business logic is divided in far smaller units (services)
that are based on industry standards.
- Eliminates the technical problems of SAP R/3 (see above) upon upgrades and release
changes much higher flexibility regarding extensions and implementation.
- Contains all functions of R/3 Enterprise plus many new applications and functional ar-
eas
o Self-Service Procurement
o Internet Sales
o Self-Services
o Composite Applications
o etc.
- Completely integrated in SAP NetWeaver framework and, thus, enables usage of
NetWeaver capabilities (Analytics, BI, Portal Integration, etc.).
2.3.2.1 SAP Business Suite

SAP Business Suite is a complete package of enterprise solutions that link people, infor-
mation and processes. It consists of the following individual SAP solutions:
- SAP ERP SAP Enterprise Resource Planning
- SAP CRM SAP Customer Relationship Management
- SAP PLM SAP Product Life-Cycle Management
- SAP SRM SAP Supplier Relationship Management
- SAP SCM SAP Supply Chain Management
2.3.2.2 SAP Enhancement Packages

- New applications and developments for SAP ERP, changes to the software, exten-
sions, enhancement, upgrades, etc. are now implemented by using enhancement pack-
ages.
- Optional packages that enable companies to take advantage of ongoing innovations
while keeping their core software stable.
- Benefits of enhancement packages
o accelerates and simplifies the upgrade process and adaptation to industry sec-
tors
o allows for the addition of innovations on top of SAP ERP 6.0
o no need for a full upgrade of the current release of SAP ERP
o simplifies the way customers manage and deploy new software functionality

Customers can electively implement and activate software innovations

from SAP and activate the software according to business requirement.
Customers can isolate the impact of software updates and bring new
functionality online more quickly, through shortened testing cycles.
- currently available for SAP ERP and SAP NetWeaver only
The new capabilities included in an enhancement package focus on the following four areas:
- Simplification
- Generic enhancements
- Industry-specific enhancements
- Enterprise Service Bundles
The following key points summarize important facts about the enhancement package concept
and recommended approaches:
- SAP enhancement packages are cumulative.
- The latest available enhancement package version should be installed.
- Single step installation of enhancement packages and Support Packages.
- SAP enhancement packages have their own Support Packages.
- SAP enhancement packages have the same maintenance period as the underlying core
application, SAP ERP 6.0.
- You install only selected parts of the enhancement package. The selection is driven by
functional need from a business point of view.
- Installations of enhancement packages, as well as the activation of business functions, are
irreversible.
- Installation of an SAP enhancement package has no impact on existing business processes
or user interfaces, as long as no business function has been activated.
o Activation of business functions is only possible in ABAP-based systems, not
in Java-based systems.
o Enhancement Packages in Java-based systems are active after installation.
- Enhancement Packages of SAP NetWeaver are active after installation. Only one
enhancement package version is allowed in an ABAP system
2.3.3 SAP NetWeaver

- SAP NetWeaver is a Web-based, open integration and application platform and the
technical basis for almost all SAP products.
- Implements the idea of SOA/ESA.
- Provides the integration and alignment of people, information and business processes
across business and technology boundaries.
- By using open standards it is flexible and compatible with almost every system imagi-
nable.
- SAP highlights the compatibility with .NET (Microsoft) and J2EE (Oracle former Sun
Micro Systems).
- Consists of four layers:
o People Integration
Portal infrastructure

Collaboration (inter-company collaboration)

Multi-Channel access
SAP NetWeaver Mobile
o Information Integration
Business Intelligence (SAP BI, SAP BO)
Knowledge Management
Master Data Management
o Process Integration
SAP NetWeaver Process Integration
Business Process Management
Solution Manager
Cross Component Business Process Management (ccBMP)
o Application Platform
SOAP
WSDL
UDDI
XML
HTTP, HTTPS, HTML, JavaScript
.NET, WebSphere
o SAP Web AS
o ABAP and J2EE runtime environment
2.3.3.1 IT Practices and IT Scenarios

Enhancement Packages contain new developments, new functionality, extensions or im-
provements for existing and already installed SAP ERP and SAP NetWeaver applications. For
instance, you have the Material Management application SAP MM already up and running in
the company and SAP develops a new interface for SAP MM or enables new material plan-
ning functionality. These new functionalities can be implemented on top of the existing instal-
lation by using the enhancement package.
IT Practices is an implementation strategy to bring a whole new functionality to the SAP
NetWeaver stack. For instance, a company wants to improve its employee's productivity. For
this case, SAP offers the IT Practice User Productivity Enablement. This IT Practice en-
compasses several IT Scenarios. Not all of them may be relevant for the company, and im-
plementing and running all IT Scenarios may become too expensive regarding the available
budget. The company operates its SAP systems (e.g., SAP CRM, SAP BI, SAP ERP) using
the SAP GUI. Now it decides that it should operate all its IT systems from one single point by
using the SAP NetWeaver Portal. Therefore, they decide to implement the IT Scenario Run-
ning an Enterprise Portal. This IT Scenario contains all the necessary activities and installa-
ble units that need to be accomplished to run the SAP NetWeaver Portal.
Details on each SAP Practice and SAP Scenario are not relevant for the TERP10 exam. You
should only know what they are about. The following figures display how you can find more
information on each IT Scenario on SAP's web site help.sap.com.

Figure 17: IT Scenarios: help.sap.com
The following figure highlights the IT Scenario Running an Enterprise Portal.
Figure 18: IT Scenario Running an Enterprise Portal: help.sap.com

What else you should know about IT Practices and Scenarios?

IT Practices can be considered as a complete package of applications and functionalities that
belong together. That is, you use SAP NetWeaver technology components from all layers
(people, information, process, application) described previously to compose the business pro-
cess or business scenario that you want to implement.
Main business goals that can be achieved:
- You can combine different integration technologies and systems (SAP or non-SAP)
that are using the open communication standards of SAP NetWeaver.
- You can develop composite applications leveraging existing system investments
securing existing IT investments by integrating existing systems and processes with
the SAP NetWeaver platform.
- You can flexibly build new business processes.
IT PracticesSAP NetWeaver enables the following IT Practices:

- User productivity enablement
- Data unification
- Business information management
- Business event management
- End-to-end process integration
- Custom development
- Unified life-cycle management
- Application governance and security management
- Consolidation
- Service-oriented architecture design and deployment
IT Scenario
An IT Scenario supports a process-oriented implementation approach. IT Scenarios quickly
and easily help to:
- develop, compose and run applications
- build, enhance and operate an IT infrastructure
- integrate people, information, and processes
- implement a defined IT concept such as evolving a companys system landscape into a
services-based architecture
Each IT Practice can be broken into one or multiple IT Scenarios.

Some IT Scenarios belong to more than one IT Practice.
2.3.3.2 Installable Units

Before you can implement a particular IT Scenario, several SAP NetWeaver functionalities
must already be in place. These functionalities are grouped together and build so-called In-
stalled units. Installed units are building blocks and are composed of clients (like SAP
NetWeaver Developer Studio, Business Explorer or SAP GUI for Windows), standalone en-
gines (like Search and Classification, Job Scheduler or Content Server) and usage types.

To stick with the Enterprise Portal IT Scenario, you can see from the SAP documentation that
the Installable Units Application Server Java, the Enterprise Portal Core (EP Core) and the
Developer Infrastructure must already be available in the company's NetWeaver installation
to implement this IT Scenario.
Figure 19: Installable Units: help.sap.com
Usage types are built from technical software components that form an installable and con-
figurable unit. They are reusable, installed and preconfigured units, and they can be built upon
other usage types.
SAP NetWeaver components and tools:

Components
- SAP NetWeaver Application Server
- SAP NetWeaver Business Intelligence
- SAP NetWeaver Business Process Management
- SAP NetWeaver Process Integration
- SAP NetWeaver Master Data Management
- SAP NetWeaver Mobile
- SAP NetWeaver Portal
- SAP Auto-ID Infrastructure
- SAP NetWeaver Identity Management
Tools
- Adaptive Computing Controller
- SAP NetWeaver Composition Environment
- SAP NetWeaver Developer Studio
- SAP NetWeaver Visual Composer
- SAP Solution Manager

2.3.3.3 Advantages and Benefits of SAP NetWeaver

What is so good about SAP NetWeaver?
- openness and extensibility
- immediate integration
- low TCO

Overview of SAP ERP
3 Overview of SAP ERP

Organizational levels and master data provide the framework that supports the business trans-
actions. Reporting allows displaying master data as well as the output of business transac-
tions. This section provides an overview of the fundamental concepts of organizational levels,
master data, transaction data and reporting in SAP ERP.
3.1 Theory: SAP ERP Basics

There are four basic concepts in SAP ERP: organizational levels, master data,
transaction data and reporting. These basic elements are designed and utilized
to represent a companys enterprise structure and business processes within the
system. Thereby, they are common threads across all applications of SAP. That
is, all SAP application (Financial, Controlling, Logistics, Material Manage-
ment, Human Resources, etc.) use these basic elements to run their business processes.
Organizational levels are the foundation of all other basic elements. Master data are next. You
cannot create master data unless the organizational levels have been defined. Master Data will
be created and assigned to organizational structures at various levels (company code level,
plant level, etc.). On the next higher level you have the transactions. Organizational levels and
master data are needed to create transactions. Thereby, transactions represent the business
processes ran in the SAP ERP system. The last level is reporting. After transactions and mas-
ter data have been created, that is, you have accomplished your business processes, you can
report on these different types of data.
3.1.1 Organizational plan of SAP ERP

You will now get a short overview of the basic organizational levels of the SAP client
concept. You should be familiar with the following terms and their relationships to be able to
process the case studies. Additionally, you might have to answer questions concerning the
organizational plan in the certification exam.
Every company has an organizational model. The organizational model defines

the various organizational units that belong to the company and the
relationships between those units. How the organizational model is structured
is different from company to company. Most companies probably are structured
in a hierarchical way. That is, you have the management of the company at the
top level, then following functional areas like sales, purchasing, production, etc., on midlevel
and probably supporting organizational units like human resources, financial and controlling.
Without going into too much detail regarding organizational management theory, one can say
that there are multiple different organizational management concepts.
However, our focus is on SAP ERP. One of the most crucial steps when implementing the SAP
ERP software is the mapping of the real-world organizational model of a company to the
structures of the SAP ERP software. This implementation step takes place in the SAP system
customizing.

Overview of SAP ERP
The SAP ERP system offers multiple objects that can be used to accomplish this mapping.
SAP ERP systems are client-based. This allows the integration of multiple commercially
independent companies in one single system.
Flexible organizational elements in the SAP System enable more complex enterprise
structures to be represented. If there are many organizational elements, the legal and
organizational structure of an enterprise can be presented in different views. By linking the
organizational units, the separate enterprise areas can be integrated and the structure of the
whole enterprise can be represented in the SAP System. Organizational units and their
relationships are defined in SAP ERP system's customizing.
A client is the highest-level unit in a SAP system. Each client represents the enterprise,
company or business, depending on the size. Thus, a client is an organizationally, data model-
wise and legally closed unit. A client includes a set of tables and data, which are separate from
other clients. In SAP, clients are identified through their client number. You can find which
client you will be using from your access data in the welcome mail.
Another important term is Company Code. You will primarily use the Company Code 1000
(Germany) within the case studies. Furthermore, you will learn the terms Plant, Storage
Location, Purchasing Organization, Shipping Point, Sales Organization, Controlling Area, etc.
You can find an overview of this terminology in the following figure.
Organizational levels, like client, may be used by all SAP ERP applications, organizational
levels such as a plant, can be used by multiple applications (e.g., SAP MM - Material Man-
agement, SAP PP - Production Planning), and finally organizational levels, such as a sales
organization, are used by a single application (SAP SD - Sales and Distribution).
Figure 20: SAP organizational structure: terminology

Overview of SAP ERP
Subsequently, you will now read about the relevant organizational units in this course. At the
beginning of each case study, you will get a short overview of the particularly important
organizational units of the given functional area. In the following, you will become
acquainted with the most common organizational units in SAP ERP and to which functional
area (application) they belong to.
Organizational units may be assigned to a single application (such as Sales

Organization assigned to Sales and Distribution) or to several applications
(such as Plant assigned to Materials Management and Production Planning).
Thus, the following descriptions only indicate to which application those or-
ganizational units primarily belong too.
SAP ERP is structured into three major functional areas (applications). Each
application contains further sub-applications. The following list displays the
most important ones:
- Accounting (SAP FI, SAP CO)
- Logistics (SAP LO, SAP SD, SAP MM, SAP PP)
- Human Resources (SAP HCM)
3.1.1.1 Organizational Units of Accounting (SAP FI and SAP CO)

The functional area of Accounting in SAP ERP contains the following major (relevant for this
course) applications:
- SAP FI: Financial Accounting
- SAP CO: Management Accounting (Controlling)
The following organizational units belong to these functional areas.
Company Code
Company structure determines whether a self-contained set of accounts is required for exter-
nal reporting purposes or not. Therefore, SAP ERP features the Company Code as an organi-
zational level. It is the smallest organizational unit for which a self-contained set of accounts
is possible according to commercial law; a complete profit and loss statement can be issued. If
a business organization consists of more than one company (i.e., a group), Company Codes
represent the particular companies of the group from an accounting point of view.
The Company Code is the central organizational element of Financial Accounting.

Overview of SAP ERP
Figure 21: SAP organizational structure
Credit Control Area

A company can monitor customer credit line, which are managed on the organizational level
of credit control area. A credit control area can contain multiple Company Codes. Thus, the
SAP system can react to particular events relevant to credit limitations with either warnings or
delivery blocks.
Business area
You can organizationally structure a company in distinct business areas to facilitate external
reporting (balance, profit and loss statement). The decisive characteristics are different prod-
ucts or product groups. Thus, a business area is a product-based view across the organization
allowing for a condensed view on particular products or product groups.
Controlling Area
In SAP ERP, the organizational level for planning, allocating and monitoring costs is the con-
trolling area. You can assign multiple Company Codes to a particular controlling area, de-
pending on size and structure of a company. A group can, for example, show internal activity
allocation via multiple companies (cross-Company Code cost accounting). A controlling area
is a separate organizational structure for which costs and revenue can be controlled and cred-
ited. It is a separate controlling unit.
The controlling area is the central organizational element of Management Accounting (Con-
trolling).
Operating Concern
Usually, results of a controlling area are multi-dimensional. To facilitate structuring, operat-
ing concerns can be created as result subsets. Thus, operating concerns filter the overall result
based on defined criteria. In turn, these particular characteristics can be analyzed across con-
trolling areas. Operating concerns can be structured in event objects, which are important for
market analysis.

Overview of SAP ERP
3.1.1.2 Organizational Units of Logistics

The functional area of Operations in SAP ERP contains the following major (relevant for this
course) applications:
- SAP LO: General Logistics
- SAP SD: Sales and Distribution
- SAP MM: Material Management
- SAP PP: Production Planning
- SAP PS: Project System
The following organizational units belong to these functional areas.
General Logistics (SAP LO)

Plant
From a logical point of view, Plants structure a company in organizational terms, i.e., it dis-
tinguishes between different production, procurement, maintenance and/or planning locations.
From a commercial point of view, a Plant is a branch. A Company Code can contain multiple
Plants (1:N). The Plant is the central organizational unit in logistics.
Figure 22: Plants in SAP ERP
Division
Production of goods depends on size and structure of a company. Products, materials and ser-
vices can be assigned to divisions. Since different Sales Organizations can distribute the same
products, divisions can be assigned to multiple Sales Organizations. Accordingly, one Sales
Organization can contain multiple divisions (M:N). A division is an organizational unit that
can determine customer-specific agreements, e.g., partial delivery or payment conditions.
SAP ERP can identify the Distribution Channel and the corresponding business unit by using
the division stated in the material master.
Sales and Distribution (SAP SD)

Sales Organization

Overview of SAP ERP
SAP ERP uses Sales Organizations to distribute produced materials and offered services of a
company. Thus, a Sales Organization is the rough structure for distribution. One or more
Sales Organizations can be assigned to a particular Company Code (N:1). Correspondingly,
goods distribution can be structured regionally, since it is possible for Sales Organizations to
distribute goods from more than one Plant at the same time (M:N). Accounting is conducted
on Company Code level.
Sales Office
A Sales Office is a sales unit from an organizational point of view. It can be compared to a
distribution branch where intermediates distribute products and services.
Distribution Channel
A Distribution Channel is the organizational unit to enable distribution of produced and mar-
ketable goods and services. There are multiple channels for the distribution of products. Since
there are customers who request to receive goods over distinct channels, more than one Dis-
tribution Channel can be assigned to a Sales Organization. Additionally, a Distribution Chan-
nel can be assigned to multiple Sales Organizations.
Sales area
The combination of Sales Organization, Distribution Channel and division is called a sales
area. It is used for analysis and pricing.
Figure 23: SAP sales areas
Material Management (SAP MM)
Storage Location
A storage location is an organizational unit enabling local distinction of material stock within
a Plant. Quantitative inventory management and inventory are conducted on storage location
level. A storage location is part of a Plant; a Plant can contain multiple storage locations
(1:N).

Overview of SAP ERP
Purchasing Organization
The purchasing organization is the core element of a company. Alternative procurement of
materials is possible, i.e., the purchasing organization may order for the group (i.e., all Com-
pany Codes), a single Plant, all Plants, or hybrid forms. Furthermore, the purchasing organiza-
tion negotiates procurement terms and conditions with vendors.
Figure 24: Purchasing organization in SAP
3.1.1.3 Organizational Units of Human Resources (SAP HCM)

The functional area of Human Capital Management in SAP ERP contains the following or-
ganizational units.
Personnel Area
Personnel area represents a distinct organizational unit for human resources administration,
time management and billing. You can assign multiple personnel areas to one Company Code
(N:1).
Personnel Subarea
A personnel subarea represents a distinct part of a personnel area for human resources admin-
istration (HR), time management and billing. You can assign multiple personnel subareas to
one Personal Area (N:1).
Employee Group
In HR, you can define personnel-related conditions for an employee group as particular or-
ganizational unit. The same HR conditions are applicable for each employee group (e.g., re-
tired persons, freelancer).
Employee Subgroup

Overview of SAP ERP
An employee subgroup is the organizational unit under the employee group. Within an em-
ployee group, employee subgroups define conditions in more detail, e.g., regarding non-pay
scale employees. You can assign multiple employee subgroups to an employee group (N:1).
3.1.2 Master Data, Transactions, and Transaction Data

SAP ERP systems use two different types of data: master and transactional data.
3.1.2.1 Master data

Master data is used on a long-term basis for business processes. They are created centrally,
and all applications and authorized users can apply them. Master data include customer data,
material data and vendor data.
Customer master records contain key information defining company relations to a particular
customer. Master data are used for processing important business processes, e.g., customer
requirements, deliveries, billing or payments.
Master data feature an organizational aspect as well, since they are organized into different
views that are assigned to particular organizational units. Customer master record data is, for
example, organized into three views that are located on different organizational levels: general
data (client), accounting data (company code) and sales data (sales area).
Data on the client level are accessible by all company codes. On this layer, a customer ac-
count number is assigned, i.e., from a financial point of view, a customer gets an explicit
number in all company codes.
Figure 25: Customer master records: example
The following figure displays another important type of master data: the 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 and priced. The information in the material master
is grouped into views that are organized by business function. As you can see from the figure

Overview of SAP ERP
(and you will witness later in the practical parts of this course), the data in the material master
is grouped into views that are organized by business function
- General data: material number, short text, volume, etc.
- Sales and distribution data: delivering plant, tax category, etc.
- Material planning data: stock valuation, planning parameter, etc.
- Inventory data: requirements planning parameter, inventory management, etc.
Figure 26: Master Data Example: Material Master
3.1.2.2 Transactions
Transactions are applications running business processes in the system, e.g., creating a sales
order, posting incoming payments or checking absence requests. Transaction data is short-
term, activity-related data (e.g., orders) which are assigned to particular master data (e.g., cus-
tomers).
Whenever possible, master data is copied during transaction processing, thus, avoiding re-
entry of data. For example, when executing the transaction Create Sales Order, the user must
enter the customer master number; this number is copied into all of the relevant customer in-
formation. Likewise, once the material master numbers are entered for the items being or-
dered, the relevant material data will be copied into the sales order.
In addition, when performing each transaction, applicable organizational units must be en-
tered. For example, by specifying the sales organization information, the appropriate sales
statistics of the sales organization will be updated. Similarly, the designation of the plant and
storage location determines the location for product sourcing.
When a business process transaction is executed in the system and saved, a document is cre-
ated. This document is a data record of the transaction containing all of the relevant prede-

Overview of SAP ERP
fined information from the master data and organizational elements. For each business pro-
cess transaction carried out, a document is created in SAP.
Figure 27: Transactions in SAP
3.1.3 Example Processes in SAP ERP

The following displays three sample processes, which are typical for SAP ERP. In due course,
you will learn about these processes in more detail.
3.1.3.1 Sample Process: Purchase to Pay

From a logistical point of view, requirement planning is carried out first. To do this, the re-
sponsible department can register a materials requirement manually to Purchasing using an
order requirement. It is possible to have the order requirement automatically created by the
system.
Purchase order handling: The system provides you with entry tools when creating purchase
orders. The required entry data such as supplier, material, plant and other data relevant to the
organization of purchasing must be provided.
When goods are received, the system checks, among other things, the quantity of goods re-
ceived against the order quantity. A material document is created in MM to update the inven-
tory. At the same time, a document is created in FI with which the evaluated goods are posted
to the material stock account or the consumption account (debit) and to a goods receipt / in-
voice receipt account (credit).
After the invoice has been received in the Invoice Verification, the Vendor Invoice is
checked as to the correctness of computation and content. All of these purchasing processes
are settled in Logistics. The vendor invoice is posted in MM and, at the same time, a docu-
ment is created in FI with which the invoice amount is posted to the goods receipt / invoice
receipt account (debit) and the vendor account (credit). The goods receipt / invoice receipt
account is used to make sure that a goods receipt is executed for every invoice and vice versa.

Overview of SAP ERP
The Payment Process usually takes place in Financial Accounting. It is here that decisions
are made about the payment process such as, for example, the payment methods and the bank
settlement.
Figure 28: Procurement: example process
3.1.3.2 Sample Processes: Order to cash

The sales order is the basis of the sales process. Many different scenarios can be settled via
the sales order in SD. Two scenarios, which are typical for Accounting, are introduced here as
an example: the anonymous sale of products ex stock and the made to order production
using the generation of a service.
Product sale ex stock: In this process, a sales order is created for material, which is kept in
inventory. Costs and revenues are derived automatically from the material production costs or
from the SD sales prices. An outbound delivery document is created. The delivery cannot be
billed until the goods have been removed from the stock and posted as goods issue. You can
create a Transport Order that generates a transfer order. The required goods are removed
from the stock and prepared for delivery. The goods to be delivered are posted as Goods Is-
sue. In MM, a goods issue document and an accounting document in FI are created. The last
step in the sales and distribution process is Billing. An invoice document is created in SD and
a printed invoice is sent to the customer. Billing is also the point when revenues are trans-
ferred to Controlling. When the Payment has been made by the customer, you receive your
money and post the receipt of payment in FI.
Producing a service represents, in contrast to ex stock sales, a direct Service Generation

Process that can also be displayed via a sales order item. The sales order item is a cost bear-
er. This means that the costs, and also the revenues, can be posted individually and directly
on the SD item. The steps for incoming orders, billing, and payments are nearly all identical
to the steps in sales ex stock. However, in this service example, transport and delivery do not

Overview of SAP ERP
apply. The cost bearer sales order item can be posted for all transactions of the service gener-
ation directly. When the service is completed, you can pass on the costs and revenues to the
profitability analysis (CO-PA) via the Order settlement.
Figure 29: Engagement management: sample process
3.1.4 Reporting Solutions

SAP ERP systems feature many powerful information systems. Usually, each functional area
administers its data and documents in one or more information systems, which are integrated.
Examples of information systems within SAP ERP are the logistics, distribution, HR or the
order information system.
Systems like SAP ERP are also referred to as Online Transaction Processing (OLTP). The
reporting necessary in this type of system often refers to information requirements for day-to-
day work.
While, e.g., carrying out transactions in the logistics application of SAP ERP, the Logistics
Information System (LIS) updates all relevant information (e.g., goods movement, inventory,
order data) in database tables of the ERP System.
These data can be analyzed by using the information systems of SAP ERP. Thereby, list dis-
play enables the user to request a listing of documents or master data information. List dis-
plays are reports accessing data that is generated directly from online transactions. It is also
possible to have information structures to aggregate data for simple operational analytics.
More sophisticated information systems (than the information systems of SAP ERP) are re-
ferred to as Online Analytical Processing (OLAP) systems. In an OLAP environment, ana-
lytical systems must provide information about the import factors that an enterprises man-
agement needs for its business decisions. In a data warehouse (e.g., SAP BW), key figures are
derived from various sources (ERP, CRM, SCM, Databases, Internet, etc.) and are aggregat-
ed. For instance, you can upload information from the LIS to a SAP BW system for more
complex analyses.

Overview of SAP ERP
In the following figure you can see that data created as a result of processing business transac-
tions in SAP ECC (data stored in tables) can be accessed in reports available in SAP ECC or
the information can be pulled into BW and reported there.
Figure 30: Reporting and Analytics
OLTP environments are fundamentally different from OLAP environments. Both reporting
types are available in ECC.
- The OLTP (operational) layer stores data with a very detailed level of information.
The stored data record is the source of information.
- The OLAP (informational) layer of the data warehouse is compressed for high-
performance access and analysis and is stored in summary level detail (aggregation).
Figure 31: OLTP versus OLAP

Overview of SAP ERP
A complete business intelligence solution is subdivided into various areas. SAP brings to-
gether a powerful business intelligence infrastructure, a comprehensive set of tools, planning
and simulation capabilities and data-warehousing functionality delivered through enterprise
portal technology. This enables strategic analysis and supports decision-making within a
company. Authorized employees can access and evaluate historic and current data in different
levels of detail.
SAP BW provides data analysis from operative SAP applications as well as from all other
business applications and external data sources, e.g., databases, online services, the internet.
Administrator Workbench (AWB) functions enables controlling, monitoring and maintaining
of all data procurement processes.
SAP BW features online analytical processing (OLAP) for information processing in case of
large amounts of both operative and historical data. OLAP enables multidimensional analyses
with respect to various business characteristics.
The BW server, which is pre-configured by the business content for the core areas and pro-
cesses, features various views on companywide relationships. Business content provides tar-
geted information for a company, which will be divided into roles. This helps employees to
complete their work. Besides roles, business content features other pre-configured compo-
nents, e.g., queries, key figures or characteristics. These objects facilitate SAP BW implemen-
tation.
The Business Explorer (BEx) component offers the user extensive options for analysis.
In the following units of this course, you will learn about the particularly relevant information
systems.

Overview of SAP ERP
3.2 Elucidation
What have we learned so far?
The major outcome of this chapter was the organizational model of SAP ERP
and the difference of master and transactional data. Furthermore, you saw sev-
eral example processes and the reporting solution in SAP ERP. This chapter is
considered to be an overview only. All introduced information will be covered
in great detail in the following teaching units.
3.2.1 Organizational Plan of SAP ERP

- SAP ERP provides multiple organizational units for mapping real-world companies to
the SAP ERP software structure.
- Organizational units and their relationships with each other are defined in the SAP
systems customizing.
- SAP ERP has multiple functional areas (applications) in accordance to real-world
company departments:
o Accounting (SAP FI, SAP CO, etc.)
o Logistics (SAP LO, SAP SD, SAP MM, SAP PP, etc.)
o Human Resources (SAP HCM)
- Organizational units primarily belong to one of those applications. Some organiza-
tional units are used in multiple applications: e.g., Plant is used in SAP LO, SAP MM
and SAP PP.
Client
- The Client is the highest organizational level in a SAP ERP system.
- A SAP ERP system can host multiple Clients. Each client hast its own set of tables
and data. For instance, a customer that exists in Client 900 is not available in Client
901 on the same SAP system.
- One can say that the Client is the whole enterprise (e.g., Siemens) and all other organ-
izational units of that enterprise belong to that Client.
3.2.1.1 Accounting
Company Code
- A Company Code is a unit included in the balance sheet of a legally-independent en-
terprise and is the central organizational element of Financial Accounting (SAP FI).
- Company Codes represent companies in an enterprise from the financial and fiscal
point of view. For instance, the Company Code 1000 might be the German head quar-
ter of Siemens and Company Code 2000 might be the British head quarter of Siemens.
- Every time a process that has money involved is accomplished, youll need to specify
a Company Code!

Overview of SAP ERP
Controlling Area
- Controlling Areas represent the cost structure of an enterprise. Objects like cost cen-
ters or costing types are defined in reference to Controlling Areas.
- Controlling Areas are the central organizational elements of Management Accounting
(SAP CO).
- A Controlling Area can be responsible for the costing of 1 to N Company Codes. For
instance, depending on the organizational structure, Siemens might have a joint Con-
trolling Area 1000 for the companies in Germany and Great Britain.
Operating Concern
- Operating Concerns are used for profitability analysis, profit center analysis, market
segment analysis, etc.
- The outcome of controlling area data is multi-dimensional. That means that arising
expenses and income made can be analyzed in reference to many organizational ele-
ments. For instance, a market segment analysis might look like this (the dimensions of
the market segment are in capital letters): How much money did we make in the
YEARS 2005 and 2006, with our PRODUCT xy, with our CUSTOMER GROUP z in
EUROPE.
- Operating concerns are used for analysis purposes only.
Credit Control Area

- Is used for monitoring customer credits.
- A Credit Control Area can have multiple Company Codes assigned. That is, e.g., all
customers of Siemens Europe might be credit checked by one Credit Control Area.
Business area
- Business Areas organizationally structure a company in distinct areas to facilitate ex-
ternal reporting (balance, profit and loss statement).
- Business Area is a product-based view across the organization allowing for a con-
densed view on particular products or product groups; examples of Siemens Business
Areas: Power Train Engineering, Medical Technology, Security Technology, etc.
3.2.1.2 Operations
Plant
- One can say a Plant is a factory. That is where products are manufactured.
- A Plant can be assigned to only ONE Company Code. Whereas, a Company Code can
have multiple Plants assigned. For instance, Siemens has a factory in Munich and an-
other one Berlin. Both factories belong, from a fiscal and financial (balance sheet)
point of view, to the Company Code Germany (1000).

Overview of SAP ERP
Division
- Products, materials and services can be assigned to Divisions.
- Since different Sales Organizations can distribute the same products, divisions can be
assigned to multiple Sales Organizations. One Sales Organization can contain multiple
divisions (M:N).
- A division can determine customer-specific agreements, e.g., partial delivery or pay-
ment conditions.
- SAP uses a division to identify the Distribution Channel and the corresponding busi-
ness unit that is responsible for a material.
- A Division (Logistic view) can be congruent to a Business Area (Finance view): ex-
amples of Siemens Division might be Power Train Engineering,
Sales Organization
- Sales Organizations are used to distribute produced materials and offered services of a
company.
- One or more Sales Organizations can be assigned to a particular Company Code (N:1).
Correspondingly, goods distribution can be structured regionally, since it is possible
for Sales Organizations to distribute goods from more than one Plant at the same time
(M:N).
- Accounting is conducted on Company Code level.
Sales Office
- From an organizational point of view, a Sales Office is a sales unit.
- It can be compared to a distribution branch, where intermediates distribute products
and services.
Distribution Channel
- A Distribution Channel is the organizational unit to enable distribution of produced
and salable goods and services.
- Examples of Distribution Channels: Direct Sales, End-Customer Sales, Intermediary,
Whole Sale, Internet.
- More than one Distribution Channel can be assigned to a Sales Organization.
- A Distribution Channel can be assigned to multiple Sales Organizations.
Sales area
- A combination of Sales Organization, Distribution Channel and division is called sales
area.
- It is used for analysis and pricing.

Overview of SAP ERP
Storage Location
- A Storage Location enables local distinction of material stock within a Plant.
- Quantitative inventory management and inventory are conducted on Storage Location
level.
- A Storage Location is part of a Plant; a Plant can contain multiple storage locations
(1:N).
Purchasing Organization
- Purchasing Organizations are responsible for purchasing materials and services for a
company.
- Alternative procurement of materials is possible, i.e., the purchasing organization may
order for the group (i.e., all Company Codes), a single Plant, all Plants or hybrid
forms.
- The Purchasing organization negotiates procurement terms and conditions with ven-
dors.
3.2.1.3 Human Resources

Personnel Area
- Personnel Area represents a distinct organizational unit for HR administration, time
management and billing.
- You can assign multiple personnel areas to one Company Code (N:1).
Personnel Subarea
- A Personnel Subarea represents a distinct part of a personnel area for HR administra-
tion, time management and billing.
- You can assign multiple personnel subareas to one Personal Area (N:1).
Employee Group
- Personnel-related conditions are defined for an Employee Group.
- The same HR conditions are applicable for each Employee Group (e.g., retired per-
sons, freelancer).
Employee Subgroup
- An Employee Subgroup is the organizational unit under the Employee Group.
- Within an Employee Group, Employee Subgroups define conditions in more detail,
e.g., regarding non-pay scale employees.
- You can assign multiple employee subgroups to an employee group (N:1).

Overview of SAP ERP
3.2.2 Master Data, Transactions and Transaction Data
Master data
- Master data are long-term data stored in the SAP ERP system. They are the basis for
each business process.
- Examples of Master data are:
o Customer data
o Material data
o Cost Types
o etc.
- Master data always have an organizational aspect. That is, e.g., the customer Taymaz
Khatami could belong to the Company Code 1000 Germany (Finance view) and to
the Sales Organization 1000 Frankfurt (Logistics view).
- Furthermore, all master data have an organization-independent aspect:
o Materials have a Basic view that is valid for the entire client. That is, you can-
not create the same material twice in the same client.
o The same is true for customer you cannot create the same customer twice in a
client.
o But you can extend the validity of a master record to further organizational
units. That is, customer Taymaz Khatami could also purchase his products
from the company division in Great Britain. Hence his master data record must
be extended to Company Code 2000 Great Britain (Finance view) and to the
Sales Organization 2000 London (Logistics view).
Transactional data
- Transactional data are created when accomplishing processes.
- Examples of transactional data are:
o Sales orders document
o Material documents
o Delivery document
o Billing document
o etc.
- The data entered in particular fields of those documents are derived from the master
data records. Examples are:
o Customer entered in a sales order
o Material entered in a sales order
o Dependent entries like Unit of Measure, Weight, Price-Condition or
Organizational Data are derived from the mater data records you created ear-
lier.
- Every time a transaction is executed to create or change any existing data, some kind
of transactional data and some kind of document is produced.

Overview of SAP ERP
Example processes in SAP ERP

Here there were three examples of what processes in SAP ERP look like. You dont have to
learn the details of these processes, since they will be discussed in greater details in the spe-
cific teaching units. But you should pay attention to all the objects involved in a SAP ERP
process:
- You had a lot of master data involved: Customers, Materials, Vendors, etc.
- You had a lot of transactional data created: Sales order, Material Documents,
Transport Order, Billing Document.
- You had plenty organizational units and different functional areas of SAP ERP in-
volved:
o Finance (SAP FI) Company Code
o Controlling (SAP CO) Controlling Area
o Sales and Distribution (SAP SD) Sales Organization
o Material Management (SAP MM) Plant, Storage Location
o Production Planning (SAP PP) Plant
3.2.3 Reporting Solution
SAP ERP Information Systems

- Every functional area of SAP ERP has its own information system(s). Examples are:
o SAP LO LIS: Logistic Information System
o SAP HCM PIS: Personnel Information System
o SAP FI FIS: Financial Information System
- Information systems are used for retrieving and analyzing business data.
- Every time a business process (transactions) is accomplished (are executed), the
changes in business data are updated in the information systems.
- List display enables the user to request a listing of documents or master data infor-
mation.
SAP BW
- A more sophisticated information system is SAP BW (Business Warehouse).
- SAP BW is part of the SAP NetWeaver (Information Integration layer).
- SAP BW is not part of SAP ERP but can be integrated with SAP ERP. Hence, data
from SAP ERP are uploaded to the BW-system for analysis processes.
- SAP BW offers a variety of end-user application tools (Business Explorer) for com-
plex analysis.

IDES: The SAP Model Company
4 IDES: The SAP Model Company

You will now get acquainted with the model company IDES. This whole section is supposed
to be an excursus, which is completely irrelevant to the SAP exam. It is meant to explain the
company, which will be used in the case studies.
4.1 Excursus: The IDES concept

This section briefly presents the IDES concept. IDES stands for Internet
Demonstration and Evaluation System (previously: International Demonstration
and Education System). IDES is an integrated model company developed by
SAP. That is, SAP created a whole fictive company and mapped its structures to
a SAP ERP system. It is used for research, education and consulting and offers a
playground for exploring and learning the handling of the system.
4.1.1 Characteristics
The Internet Demonstration and Evaluation System can be characterized as follows:
- completely developed model company
- based on a standard SAP system
- includes master data and transaction data
- complete customizing
- extensive data and process documentation of business processes across components
- online documentation with tutorials for the business processes of the IDES group
The IDES development department is responsible for maintaining and updating organizational
data in IDES, e.g., new planning horizons are created, period-end closings are carried out and
transaction data is created to actualize the information systems. New, interesting business
scenarios are implemented to reveal related functionalities. In detail, this is about the follow-
ing areas:
- organizational structure (customizing)
- new master and transaction data
- period-end and year-end closings
- planning with corresponding horizons
- new business processes
At certain times, data is released from the master system in Walldorf (Germany).
4.1.2 IDES for training

The IDES system serves as basis for training and education (SAP internal). Trainings for the
SAP ERP system by SAP AG are based on IDES-specific data also internationally (corpo-
rate courses).

More than 500 (SAP) internal IDES installations are present worldwide as
- training systems,
- demonstration systems and
- consulting systems.
The IDES system is well established as external training and education system. The actualized
group business processes are structured in tutorials. Therefore, the IDES online documenta-
tion is available. Since the integrated processes are completely modeled in the system, IDES
facilitates learning of core functionalities on a step-by-step basis. Detailed process descrip-
tions help users without specific SAP knowledge with a quick start. Additionally, the online
help can be a guideline for internal training and a foundation for the SAP ERP presentation.
4.1.3 IDES negotiated agreement

The IDES development department engages to the following basic principles:
- Requirements of an increasingly demanding business world need to be included. This
is also applicable to educational purposes.
- Organizational structures must be designed in a practice oriented manner.
- Each core function must be up to date.
- Users with little or no SAP knowledge need to be able to handle core scenarios in the
SAP ERP system.
4.2 Excursus: IDES The Company

This chapter presents the worldwide operating IDES group in detail. Note that
you do not need to learn this (or any other excursus) for the SAP exam, but also
consider that excursuses help you to thoroughly understand the course matters
and will also deepen your understanding of the theory and/or practical parts of
the course.
4.2.1 The IDES Group

When you look at the IDES group structure, four group areas are distinguishable:
Figure 32: Overview of IDES group areas

Each group area is composed of subgroups, which are in turn composed of companies. The
IDES industry group area consists, for example, of the subgroups IDES Europe, IDES Ameri-
ca and IDES Asia, which in turn consist of their own companies (see the following figure).
Company Codes in IDES are characterized by different focal points, which will be presented
briefly in the following section. Company Code 1000 (Germany) is especially important as it
is used in our case studies.
Figure 33: IDES Company Codes
4.2.1.1 Company Code 1000 Germany/Frankfurt

Company Code 1000 comprises business processes from logistics, accounting, human re-
sources as well as common financial accounting processes and other company activities. Ac-
count determination is maintained completely in this Company Code, and dunning notices are
implemented that include complete header and footer texts. So far, approx. 70 customers were
created by SAP AG.
Furthermore, Company Code 1000 enables flexible standard costing, i.e., planning is both
independent and dependent of activity type and costs. Quantity is split in fixed and variable
portions. In version 000 of Company Code 1000, plan data is listed for the cost center. Plan-
ning was carried out in detail, since the Company Code allocates activities iteratively to value
them. In Company Code 1000, complete production is implemented, including both purchas-
ing and sales. Additionally, real estate is featured and, thus, production is completely imple-
mented.
Furthermore, the Company Code is characterized as manufacturer in the automotive industry
and in the area of bicycle manufacturing in Plant 1000. In Plant 1100, the business solution
chemicals is present, and in addition, Plant 1300 features the business solution engineering &
construction.

Figure 34: Company Code 1000 (Germany)
Different manufacturing functions are assigned to the certain Plants of IDES Germany due to
educational reasons.
Location Products Form of production Corporate function

Offer and order costing
Frankfurt elevators Engineer-to-order configuration
network
pumps Bill of materials configuration
Motorcycles Make-to-order manu- Task lists configuration
Hamburg
facturing Availability checks regarding time, capaci-
bicycles
ty, and material
Personal comput- Simple product structure with configurable
ers Repetitive manufactur- product
Dresden
ing Simple user interface for both planning and
Light bulbs
controlling activities
paint Recipe management
Process planning, process orders, and pro-
Berlin solvents Process manufacturing
cess documentation
pharmaceuticals Quality control
Stuttgart/
Additional stocks
Dresden
4.2.1.2 Company Code 2000

Company Code 2000 is characterized by a lean, medium-sized company in FI and CO. Ac-
count determination is enabled, i.e., you can update business processes from logistics in fi-
nancial accounting. A marginal plan/actual cost accounting is implemented. Cost planning is
general and completely activity-independent. Planning is simply structured, since only manu-
ally implemented costs (VPRS) are used. For cost centers, planning data in version 000 until

the year 2000 was implemented. Additionally, Company Code 2000 is component supplier for
the automotive industry in Plant 2000.
Figure 35: Company Code 2000 (Great Britain)

In Company Code 2100, predominantly ALE business processes (Application Link Ena-
bling: enables the monitored communication between SAP applications with consistent data
management) from logistics are implemented. This is about scenarios of local production. The
profit center is created based on functional criteria. The business area of this Company Code
is product-oriented.
Figure 36: Company Code 2100 (Portugal)

Company Code 2200 is a pure sales company. Business actions are documented from both a
logistical and an accounting point of view. Additionally, an own account determination is
defined, since this Company Code uses the French chart of accounts (CAFR).
Figure 37: Company Code 2200 (France)


Within Company Code 2300, also predominantly ALE business processes from logistics are
implemented. The profit center is structured based on functional criteria and the business area
in this Company Code is product-oriented.
Figure 38: Company Code 2300 (Spain)

In Company Code 3000, business processes from logistics, accounting, HR and general fi-
nancial accounting processes are represented. Account determination is maintained complete-
ly within this Company Code. Furthermore, Company Code 3000 is quite similar to Company
Code 1000, since real estate management is implemented as well. Additionally, it includes the
industry solutions Aerospace and Defense.
Figure 39: Company Code 3000 (USA)

Company Code 4000 represents a lean medium-size company in FI and CO. Account deter-
mination is ensured, i.e., business processes from logistics can be updated in FI. Company
Code 4000 is quite similar to Company Code 2000.

Figure 40: Company Code 4000 (Canada)

The decisive characteristic of Company Code 5000 is the focusing on representation of FI
and HR, although those are still in development.
Figure 41: Company Code 5000 (Japan)

Company Code 6000 is an example of a country with hyperinflation. This is about a model
to apply the material ledger to use a third currency (hard currency). Usually, each Company
Code uses two currencies. The first one is called Company Code currency and the second one
is referred to as Client Currency. The distinctive feature of Company Code 6000 is that three
currencies are featured. The first one is the Company Code currency as usual (Mexican Pe-
sos). The second currency (US Dollar) is the distinctive feature. The third currency is as
usual in IDES the Client Currency (Euro).

Figure 42: Company Code 6000 (Mexico)
4.2.2 IDES Organizational structure

This chapter presents those elements of the IDES Organizational structure using Company
Codes 1000, 2000 and 3000. This is going to be important for you in the case study sections.
Figure 43: IDES Industry
4.2.2.1 IDES Human Ressources

HR is of increasing significance; thus, HR functionalities and datasets were extended con-
siderably in IDES. The HR module encompasses:
Personnel administration
Personnel development and controlling
Recruiting
Personnel planning
Payroll for employees
Social and law issues

209 personnel master records are maintained and 44 personnel areas are existent. A structured
organizational management is implemented, featuring not only HR but also corporate ser-
vices, financials and administration as well as production and sales. Payroll for employees is
included completely (e.g., wage types, accounting area). Many vacant positions are available,
i.e., hiring and distribution on positions is possible.
Figure 44: IDES Human Resources
4.2.2.2 IDES Financials

You get a rough overview of IDES Financials from the following figure.
Figure 45: IDES Financials

You have already learned about the most important terms in this area. With respect to the case
studies implemented in Company Code 1000, it is essential to recognize which chart of ac-
counts, credit control area, and most importantly which controlling area (1000) play a role.
4.2.2.3 IDES Sales and Distribution

You are already familiar with the most important terms of sales and distribution.
Figure 46: IDES Sales and Distribution
You can learn the following from the figure above: e.g., Sales Organization is Frankfurt
(1000) and the Distribution Channel is for the end customer sales (10).
In a concrete business scenario, only individual organizational units are involved. In this case,
e.g.:
- Company Code 1000 Germany
- Sales Organization 1000 Frankfurt
- Sales Office 1000 Frankfurt
- division 01 Pumps
- Distribution Channel 10 End Customer
- Credit control for debtors takes place in credit control area 1000.

Figure 47: IDES Sales and Distribution details
4.2.2.4 IDES Logistics

In the following figure you can see the logistics area with, e.g., the purchasing organization,
Plants and corresponding warehouses.
Figure 48: IDES Logistics
With respect to the case studies, it is important to note that storage locations surrounding a
Plant are numbered consecutively, starting with storage location number 0001. Correspond-
ingly, more than one storage location with number 0001 exists in IDES, but only one belongs
to the Plant 1000 (Hamburg).

4.2.3 Conclusion
You gained a lot of theoretical knowledge about SAP, SAP R/3, SAP ERP, SAP NetWeaver
and IDES. Please bear in mind that this knowledge is the foundation of the following practical
application within the case studies, which are the appeal of this course. So please note that the
theoretical foundations (theory chapters) presented in this teaching unit and in the whole
course are relevant to the SAP certification exam.

4.3 Excursus: Information about UCC

While using the SAP ERP system with the given client-server architecture, the
provision and maintenance of the IDES client and the SAP system are arranged
by the SAP University Competence Center (UCC, by the University of Munich,
Germany).
Along with maintenance of the IDES client, the UCC offers:

- provision of hardware,
- system administration,
- system monitoring,
- online backups,
- coordinated implementation changes and
- hotline service in case of technical issues.
Local clients provide the use of the SAP system, accessing the UCC SAP server. Clients (i.e.,
your personal computer) use the latest release of the SAP GUI. The use of the SAP system is
enabled by local single-user installations via remote access.

Navigation in the SAP System
5 Navigation in the SAP System

In this section you will learn how to navigate in the SAP system by using the SAP GUI. The
prerequisite to the following is that you have accomplished the Installation and Configuration
process from the How-to-Start-Document.
Note that you must register your IP address each time you want to login to the
SAP system! The registration of your IP address at the servers of the UCC is
valid for one day only. Normally, at 12:00 am the UCC servers reset the IP list.
If that happens you will be kicked out of the system you just need to re-
register your IP address.
Furthermore, your internet provider resets your IP address at least once a day. If that hap-
pens you will be kicked out of the system, too again, you just need to re-register your IP
address.
5.1 Practice: SAP ERP Screen Elements in SAP GUI

Now, you will become acquainted with the SAP GUI screen elements. Log in
to the SAP ERP system with your username WIP-xx-yy. Therefore, start the
SAP Logon and double-click on the entry stated in your welcome mail under
System.
Figure 49: SAP Logon

You should see the log-in screen of the SAP ERP system. Enter the log-in data provided in
the welcome mail.
Figure 50: SAP Log-in Screen: SAP-System-Screenshot
Now you see the start screen of the SAP ERP system.
Figure 51: SAP Start Screen: SAP-System-Screenshot

The SAP ERP screen features the following elements:
- Menu bar
The menu bar is displayed at the top of the screen. The menu items displayed in the
menu bar depend on the current application, i.e., they are context-sensitive.
Figure 52: Menu bar: SAP-System-Screenshot
In most menus, you will see the following items:
- System function bar

The icons of the system function bar are available on every SAP ERP screen. Icons
that are not applicable to a particular screen are grayed out. When you leave your
curser on a particular icon, the name and meaning, respectively, will be displayed.
Figure 53: System function bar: SAP-System-Screenshot
- Title bar
The title bar names the action you are currently processing.
Figure 54: SAP Easy Access Title Bar: SAP-System-Screenshot
- Application tool bar

The application tool bar shows icons that you can use for your current application.
Figure 55: Application tool bar: SAP-System-Screenshot
- Status bar
The status bar displays information about the current system status, e.g., alarm and er-
ror messages.
Figure 56: Status bar: SAP-System-Screenshot
- SAP Easy Access Menu

The SAP Easy Access Menu is the initial standard screen of SAP. You navigate in the
system using a clearly arranged tree structure. When clicking on the small, triangular
icons, the corresponding path opens. Your menu tree is displayed according to your
role.

Figure 57: SAP Easy Access Menu detail view 1: SAP-System-Screenshot

5.2 Practice: Navigation in SAP ERP using the SAP GUI

The SAP GUI, unlike the Java GUI, is a thick client. That means that many
functions regarding display and dialog processes are integrated in the SAP
GUI. Still consider that all application (business) logic and database altering
occurs on the SAP system. Thus, no data that you will maintain in the SAP
system resides on your local computer and everything you create and change in the SAP sys-
tem will stay on the SAP servers. The benefit being that you can work from different comput-
ers and different locations and that your data is always safe, regardless of whether your lo-
cal computer were to crash, get formatted or heaven forbid, get a virus.
5.2.1 Overview of Navigation in the SAP GUI

Working with SAP systems, regardless if it is a CRM system, an ERP system or a BW sys-
tem, always involves the use of Transactions. One can say that a SAP Transaction is an exe-
cutable function in the SAP system that opens a new screen. That screen is the entry page of
the business matter you want to start, e.g., Sales Order.
5.2.1.1 Navigation Options in SAP GUI

There are three options in SAP GUI to open transactions:
Easy Access Menu

You can open transactions via path structures, navigating through the Easy Access Menu. To
open a particular transaction, double-click the corresponding entry.
Figure 58: SAP Easy Access Menu detail view 2: SAP-System-Screenshot

Favorites
If you use a particular transaction quite frequently, you can drag & drop it into the favorites
list. Then, you can open them from the list by double-clicking them without navigating
through the menu.
Figure 59: SAP Easy Access Menu Assign to Favorites: SAP-System-Screenshot
To delete particular transactions from the favorites list, select the entry (click on the transac-
tion in Favorites folder once) and select in the application tool bar or press the DEL but-
ton on your keyboard.
Figure 60: SAP Easy Access Menu Delete from Favorites: SAP-System-Screenshot
Transaction code

Entering a transaction code is the fastest way to open a transaction in the SAP system. Usual-
ly, a four-digit transaction code is assigned to each commercial transaction in SAP. If you
know the code for a particular transaction, you can enter it in the command field. After con-
firming with Enter, you can see the initial screen of the particular transaction.
You can find the command field, in which you enter a transaction code, on the upper left cor-
ner of the system function bar. By default, it is hidden. By clicking on the triangular icon
you can unhide it.
Figure 61: Command Field: SAP-System-Screenshot
To increase learning progress, it is advisable to always look for and run par-
ticular transactions in SAP via the SAP Easy Access menu. Please avoid from
the beginning, retrieving transactions by the means of transaction codes. While
using the SAP Easy Access menu, you will implicitly understand the SAP sys-
tems structure and its interrelation. Accordingly, this will help you in practice to be able to
quickly familiarize yourself with a new scope of duties in SAP.
To display transaction codes in the SAP Easy Access Menu as well, set the flag for display
technical names in the menu bar under extras settings.

Figure 62: SAP Easy Access Menu technical names: SAP-System-Screenshot
Since transactions must be concluded in SAP ERP, you need to either abort
manually or conclude the transaction by saving the data you entered. When
leaving a transaction by using , or , you might be confronted with the
following dialogue screen:
Figure 63: System prompts you to save: SAP-System-Screenshot
5.2.1.2 Session Concept

It might be useful to process one, two or more transactions at the same time while working on
the SAP system. SAP ERP allows you to work with more than one task (up to six) at the same
time.

To create a new session from anywhere in the system, choose system create session from
the menu bar of the SAP Easy Access Menu or press in the system function bar.
To close a session, choose system end session or press in the system function bar.
Figure 64: Session Concept: SAP-System-Screenshot
5.2.1.3 SAP ERP help

The SAP system features multiple help options. The F1 and F4 help functions are used quite
frequently.
Using F1, you get explanations for fields, menus, functions and messages. With F1, you can
receive technical information as well by using the button.
The following figure shows the usage of the F1-help in transaction VL01N (create delivery)
for the field Shipping Point.

Figure 65: F1-help: SAP-System-Screenshot
By using F4, you get help regarding input parameters. That is, the system will show you all
entries that are possible for a specific field. You can open the F4 help function alternatively
by using the button right next to a selected field .
The following figure shows the usage of the F4-help in transaction VL01N (create delivery)
for the field Shipping Point.
Figure 66: F4-help: SAP-System-Screenshot

You can find additional help in the help menu. The menu entry application help offers con-
text-sensitive help regarding the current screen you are working with. The link to the SAP
library forwards you to the online help, which you can access via internet as well
(help.sap.com). The menu entry glossary opens an extensive dictionary for SAP-related terms.
Using the SAP Service Marketplace, you will be forwarded to the SAP service website [Link:
service.sap.com].
Figure 67: Help Menu: SAP-System-Screenshot
5.2.1.4 Tips and Tricks

Now you will learn some useful tricks and settings of the system.
Display Technical Keys

Start transaction ME21N from the Easy Access menu.
Logistics Material Management Purchasing Purchase Order Create Ven-

dor/Supplying Plant Known (ME21N)
1. Click on the drop-down-list Standard PO. Scroll the list up to the top. You see that
there are repeating entries for Electronic commerce. Consider that each entry has a
different technical setting for the document that is created due to the usage of that en-
try. However, the SAP guy who set up this configuration was not paying much atten-
tion when editing the description field of those entries.
Figure 68: Display Technical Key (1): SAP-System-Screenshot

2. Fortunately, you can display the Technical Key for all entries in SAP. The Technical
Key has to be unique in the systems customizing. Thus, displaying that key will
prevent you from selecting wrong entries in the case studies. Therefore, press the
button and select Options.
3. In the pop-up window, expand the folder Interaction Design/Visualization Interaction
and select Show keys within dropdown lists. Selecting Sort by keys... will display the
keys in alphabetical order in the drop-down-list. Press .
4. Now the Technical Keys for the entries should be displayed and you can easily dis-
tinguish between them.

It is essential for preventing errors in the case studies later on, to set your SAP
GUI in that way that it displays the technical keys.
JavaGUI users can set the technical key in the SAP JavaGUI Logon Pad directly
as described in the following figure.
You can use the -Button to customize the local layout of your SAP GUI to
match your needs. You can set shortcut-keys, you can set the appearance of the
GUI, vary the design, etc. For instance, you can select Design Settings and turn
off the typical (sometimes annoying) SAP GUI sound. However, you can ex-
plore the settings on your own if you want to. The settings apply to your GUI only.
Search SAP menu

I have already mentioned that it is best to start transactions from the Easy Access menu to
enhance learning effects rather than using the transaction codes. Sometimes it is pretty long-
some to find a specific transaction path in the SAP Easy Access menu. In those cases, you can
enter the transaction code SEARCH_SAP_MENU in the command field and search for the
path to a transaction. The following figure displays the procedure:
1. Start transaction SEARCH_SAP_MENU.
2. Enter the transaction code you are searching for; here: VA01
3. Check the result list: Due to the integration aspect, many transactions can be started
from different functional areas (applications), the system displays all the paths to that
transaction.

Figure 72: Search SAP menu: SAP-System-Screenshot
Desktop Shortcut
Another very useful tip is to create a short-cut for the system/client login on your desktop.
The problem with the login is that you always have to enter the client, your user and the
password when logging in to the system. By creating a short-cut, you only need to enter the
password.
1. In the system function bar, press the button .
2. In the following pop-up window, enter a title for the short-cut as well as the client
and the user from your welcome mail. Select English as language and press .

Figure 73: Create short-cut: SAP-System-Screenshot
3. Now you will find a short-cut on your desktop. From now on you only need to dou-
ble-click that short-cut and enter your password to access the system
Figure 74: Usage of short-cut: SAP-System-Screenshot
The short-cut does not affect the registration of your IP address with the SAP
servers. That is, you need to register your IP prior to accessing the system an-
yways whether you use the short-cut or the normal SAP logon group.

5.2.2 Navigation unit for SAP ERP

In the following you are supposed to navigate through the SAP ERP system and try to solve
some small problems. This chapter is meant to teach you the handling of the SAP ERP system
by using the SAP GUI. Try to explore the system on your own. A detailed solution is attached
at the end of the chapter.
5.2.2.1 User-specific settings

First of all, if still pending, set the flag for display technical names in the menu bar under
extras settings to display transaction codes in the SAP Easy Access Menu as well.
1. Sessions
How many sessions can you at maximum create at the same time? Use the appropriate button
in the system function bar.
______________________________________________
Every time you see a line like the one above, you are prompted to write down
the answer or the result on the corresponding data sheet. Every teaching unit
has its own data sheet.
After completing a teaching unit, please submit the carefully completed data
sheet via email (using the email address you received with the welcome email
of this course).
2. Transactions
What are the names of the transactions that you find in the SAP standard menu via the follow-
ing paths (SAP Easy Access menu) and what is the corresponding transaction code?
SAP menu Logistics Sales and Distribution Billing Billing Document Dis-
play
Transaction name: _______________________________

Transaction code: _______________________________
SAP menu Accounting Financial Accounting Accounts Receivable Master

Records Display
Transaction name: _____________________________

Transaction code: ______________________________
3. Which business processes are represented by the following transaction codes?
VA01: ______________________________________________
MMR1: ______________________________________________
MM01: ______________________________________________

MM02: ______________________________________________
5.2.2.2 Maintaining favorites
To assign favorites to lists, you should first create folders: Favorites Insert folder. Choose
a user-defined name for the folder. You can create as many folders as you like. You can drag
& drop folders. To create favorites, select particular transactions from the SAP Easy Access
menu that you need for the case studies. Select them and choose Favorites add to Favor-
ites to add transactions to your favorites list. You can move them using Favorites Move
Up/Down. Additionally, you can add favorites by using drag & drop.
Add the following transactions to your favorites list:
MMR1 create raw material via the menu path:
SAP menu Logistics Materials Management Material Master Material cre-

ate (special) raw material
MM03 display material via the menu path:
SAP menu Logistics Materials Management Material Master Material Dis-

play Display Current
You can also add external links to your favorites list.

Please add a link to the website of our ERP4students program: http://www.erp4students.eu.
5.2.2.3 Using the help functions
F1 help:
Open the transaction VA01 and click in the Sales Organization. Next, choose the F1 help
function. What is a Sales Organization (bullet points)?
_________________________________________
_________________________________________
In case the system displays an empty screen when opening the F1 help function, you can
choose Help Settings and set the button to modal dialog box. Then, SAP F1 help should
work even without performance assistant.
F4 help:
Close the screen displaying the definition of a Sales Organization. However, remain in the
initial screen of transaction VA01. Click in the Distribution Channel field. What are the
names of the first three Distribution Channels and which Sales Organization are they assigned
to?

Sales Organization Distribution Channel Name

1. ___________________ ___________________ ___________________
2. ___________________ ___________________ ___________________
3. ___________________ ___________________ ___________________
5.2.3 Answers to the navigation unit
5.2.3.1 User-specific settings
1. Sessions
How many sessions can you at maximum create at the same time? Use the appropriate button
in the system function bar.
15, in case you try to create another session, you will see the following message:
Figure 75: SAP Message: SAP-System-Screenshot
2. Transactions
What are the names of the transactions that you can open in the SAP standard menu via the
following paths (SAP Easy Access menu) and what are the corresponding transaction codes?
SAP menu Logistics Sales and Distribution Billing Billing Document Dis-
play

Transaction name: Display Billing Document

Transaction code: VF03
SAP menu Accounting Financial Accounting Accounts Receivable Master

Records Display
Transaction name: Display customer (accounting)

Transaction code: FD03
You can receive further information about a (selected) transaction by pressing the shift-key
and F11.
Figure 76: Display Customer (Accounting): SAP-System-Screenshot
Which business processes are represented by the following transaction codes?
VA01: create sales order

MMR1: create raw material
MM01: create material
MM02: change material

5.2.3.2 Maintaining favorites

Add the following transactions to your favorites list:
MMR1 create raw material via the menu path:
SAP menu Logistics Materials Management Material Master Material cre-

ate (special) raw material
MM03 display material via the menu path:
SAP menu Logistics Materials Management Material Master Material Dis-

play Display Current
You can also add external links to your favorites list.

Please add a link to the website of our ERP4students program: http://www.erp4students.eu.
You can add URL links by clicking with the right mouse button in the SAP menu on favorite
and choose add other object. Select either web address or file name and confirm by press-
ing Enter.
Figure 77: Favorites: SAP-System-Screenshot
5.2.3.3 Using the help functions

F1 Help:
Open the transaction VA01 and click in the Sales Organization. Next, choose the F1 help
function. What is a Sales Organization (bullet points)?

Figure 78: Performance Assistant: SAP systems screenshot
F4 help:
Close the screen displaying the definition of a Sales Organization. However, remain in the
initial screen of transaction VA01. Click in the Distribution Channel field. What are the
names of the first three Distribution Channels and which Sales Organization are they assigned
to?
Figure 79: Input help, F4 Help function: SAP-System-Screenshot

Data Sheet
6 Data Sheet
Thus, the introductory unit is concluded and you can now start working with the business-
related case studies.
Finally, please submit the carefully completed data sheet to your tutor (use support email
address from the welcome mail) for the case study introduction.
Please comply with the naming rules. Non-compliant data sheets will not be accepted; i.e., re-
name the document that you downloaded from this courses download area as follows:
00-introduction-xxyy-zzz-surname.doc
Thereby, you need to replace xxyy with your user number without the WIP and without the
hyphen (WIP-xx-yy) and replace zzz with the number of the client you are working on.
Example:
Your name is Max Mustermann, you are working on client 901, and your user number is
WIP-99-99. Then, name the document as follows:
00-introduction-9999-901-Mustermann.doc

Reflexion
7 Reflexion
Test your knowledge. In this section you are confronted with some questions
regarding the theoretical chapters of this teaching unit. Try to answer the ques-
tions on your own before taking a look at the standard solutions.
7.1 Questions
True/False Questions
1. SAP NetWeaver can only be used for applications developed by SAP.
Multiple Choice Questions
2. mySAP ERP includes the following:

(2 correct answers)
a. SAP Basis
b. SAP Database
c. SAP NetWeaver
d. SAP R/3 Enterprise
3. Which of the following are reasons to move from R/3 to mySAP ERP?
(2 correct answers)
a. Need to consolidate multiple R/3 systems.
b. Increase the total cost of ownership.
c. Extend the scope of the existing ERP functionality.
d. Need to separate Company data by Client.
4. What is the highest organizational element in SAP?

(1 correct answers)
a. Plant
b. Client
c. Company Code
d. Sales Organization
e. Purchasing Organization
5. What is the purpose of the organizational elements in SAP?

(3 correct answers)
a. They represent a legal entity.
b. They represent the application server.
c. Data is entered by using organizational elements.

Reflexion
d. Data is tracked by using organizational elements.
6. Which of the following describes data and transactions in the SAP system?
(1 correct answer)
a. Output is created for every transaction in the system.
b. Documents are created by using master data and organizational elements.
c. Master data can be deleted at any time.
d. Master data entered at the client level can only be used by one Company Code.
7. Which of the following are correct regarding the advantages of using Master Data Rec-
ords in an ERP system?
(3 correct answers)
a. Consistency
b. Reduces data redundancies
c. Data conversion is not necessary
d. Improves data integrity
8. Which of the following are subcomponents of NetWeaver?

(3 correct answers)
a. People Integration
b. Application Platform
c. Database
d. Information Integration
e. Java Development Kit
9. The Process Integration component of NetWeaver includes which of the following SAP
product?
(1 correct answer)
a. SAP EP
b. SAP BW
c. SAP XI
d. SAP Web AS
10. Which of the following statements are true about NetWeaver?

(2 correct answers)
a. Application Platform has a runtime environment for ABAP and J2EE.
b. Process Integration allows for Multi-Channel Access.
c. SAP Exchange Infrastructure is a component of Process Integration.
d. SAP Enterprise Portal is based on closed technology and standards.
i
11. Which of the following are external technologies used with NetWeaver?
(2 correct answers)
a. Websphere by IBM
b. Exchange infrastructure by IBM

Reflexion
c. .net by Microsoft
d. SAP Enterprise Portal
12. Which of the following are components of NetWeaver?

(4 correct answers)
a. SAP XI
b. SAP Web AS
c. SAP Solution Manager
d. SAP MDM
e. SAP Enterprise Portal
f. SAP Visual Composer
13. Which of the following answers are true with respect to the SAP XI?
(3 correct answers)
a. Proxy generation and mapping tools
b. Integration directory with content
c. Consistent storage of master data
d. Enterprise and vendor potential for SAP

Reflexion
7.2 Standard Solution
True/False Questions
1. SAP NetWeaver can only be used for applications developed by SAP.
Answer: False
Multiple Choice Questions
2. mySAP ERP includes the following:

(2 correct answers)
a. SAP Basis
b. SAP Database
c. SAP NetWeaver
d. SAP R/3 Enterprise
Answers: c, d
3. Which of the following are reasons to move from R/3 to mySAP ERP?
(2 correct answers)
a. Need to consolidate multiple R/3 systems.
b. Increase the total cost of ownership.
c. Extend the scope of the existing ERP functionality.
d. Need to separate Company data by Client.
Answers: a, c
4. What is the highest organizational element in SAP?

(1 correct answers)
a. Plant
b. Client
c. Company Code
d. Sales Organization
e. Purchasing Organization
Answers: b
5. What is the purpose of the organizational elements in SAP?

(3 correct answers)
a. They represent a legal entity.
b. They represent the application server.
c. Data is entered by using organizational elements.
d. Data is tracked by using organizational elements.
Answers: a, c, d

Reflexion
6. Which of the following describes data and transactions in the SAP system?
(1 correct answer)
a. Output is created for every transaction in the system.
b. Documents are created by using master data and organizational elements.
c. Master data can be deleted at any time.
d. Master data entered at the client level can only be used by one Company Code.
Answers: b
7. Which of the following are correct regarding the advantages of using Master Data Rec-
ords in an ERP system?
(3 correct answers)
a. Consistency
b. Reduces data redundancies
c. Data conversion is not necessary
d. Improves data integrity
Answers: a, b, d
8. Which of the following are subcomponents of NetWeaver?

(3 correct answers)
a. People Integration
b. Application Platform
c. Database
d. Information Integration
e. Java Development Kit
Answers: a, b, d
9. The Process Integration component of NetWeaver includes which of the following SAP
product?
(1 correct answer)
a. SAP EP
b. SAP BW
c. SAP XI
d. SAP Web AS
Answers: c
10. Which of the following statements are true about NetWeaver?

(2 correct answers)
a. Application Platform has a runtime environment for ABAP and J2EE.
b. Process Integration allows for Multi-Channel Access.
c. SAP Exchange Infrastructure is a component of Process Integration.
d. SAP Enterprise Portal is based on closed technology and standards.
i
Answers: a, c
11. Which of the following are external technologies used with NetWeaver?

Reflexion
(2 correct answers)
a. Websphere by IBM
b. Exchange infrastructure by IBM
c. .net by Microsoft
d. SAP Enterprise Portal
Answers: a, c
12. Which of the following are components of NetWeaver?

(4 correct answers)
a. SAP XI
b. SAP Web AS
c. SAP Solution Manager
d. SAP MDM
e. SAP Enterprise Portal
f. SAP Visual Composer
Answers: a, b, d, e
13. Which of the following answers are true with respect to the SAP XI?
(3 correct answers)
a. Proxy generation and mapping tools
b. Integration directory with content
c. Consistent storage of master data
d. Enterprise and vendor potential for SAP
Answers: a, b, d


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Integrated Business Processes with SAP ERP

Script 0: Introduction to SAP ERP

Tutor: Dipl.-Wirt.-Inf. Taymaz Khatami

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

5.2.2 Navigation unit for SAP ERP ............................................................................... 98

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

Figure 48: IDES Logistics ........................................................................................................ 80

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

1. Appelrath, Hans-Jrgen/Ritter, Jrg: SAP R/3 Implementation Methods and Tools,

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

At the end of this course you will be able to:

- explain how basic business processes in the areas

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

Structure, Notation, and Icons

Theory-labeled sections of this course deal with theoretical foundations of SAP

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

Sections labeled as Practice teach you how to apply theoretically gained

The Excursus section consists of additional topics to ensure in-depth understand-

Sometimes, in the practical parts, you will be prompted to accomplish processes

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

ABAP Advanced Business Application Programming: SAPs programming lan-

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French: Systmes, applications et produits dans l'informatique

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In chapter 3 Overview of SAP ERP, you will get a short introduction to

Educational objectives in chapter 2:

Educational objectives in chapter 3:

Educational objectives in chapter 4:

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- familiarize with IDES AG

Educational objectives in chapter 5:

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2 Enterprise Resource Planning with SAP ERP

2.1 Excursus: SAP The Company

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Figure 1: Annual Report 2011 (1)

Milestones of SAP history

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Figure 2: Milestones of SAP

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2.2 Theory: SAP R/3, SAP ERP and SAP NetWeaver

What is Enterprise Resource Planning?

2.2.1 SAP R/3

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Figure 3: SAP R/3 modules: Nicolescu/Wittges 2006

2.2.2 SAP ERP

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Figure 4: SAP ERP

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2.2.2.1 From SAP R/3 to SAP ERP

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Figure 5: From SAP R/3 to SAP ERP

2.2.2.2 SAP Business Suite

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Figure 6: SAP ERP is a solution within SAP Business Suite

2.2.2.3 SAP Enhancement Packages

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