Training on SAP: Introduction

Notes from my SAP class:

Introducing SAP R/3

SAP R/3 is a business application that integrates a company's core business functions in a seamless and efficient manner.

With SAP R/3, it is easy to manage just about any aspect of any business, regardless of size or complexity.

A couple of things make SAP R/3 unique. First, all of the business functions (modules) are integrated. This means that data is shared by everyone in the company in "real time" as soon as the data is entered in any of the functional modules.

A second unique feature is that SAP R/3 has multiple currency and language capabilities.

SAP R/3 is designed to support a company's global business operations.

SAP R/3 consists of different modules, each of which handles specific business processes. An organization may use all of the modules or any subset of modules. The SD, MM, PP, QM, PM, FI, CO, and WF modules will be implemented.

One of the real strengths of the SAP R/3 structure is that it is designed to handle an entire corporation--not just a few sites.

The corporation's data or information is organized in the SAP R/3 system using what is called the SAP Organizational Model (previously known as the SAP Hierarchy).

SAP R/3 looks at an organization as a hierarchy of business units for purposes of planning the flow of information. The most common units SAP R/3 uses in its organizational model are:

Client
Company
Plant
Storage Location

Other units may come into play when the organizational structure calls for them.

As you enter data into SAP R/3, you will be asked to enter organizational data such as a company code or a plant code.

These codes are used by SAP R/3 to determine how data is aggregated and reported to the correct organizational units.

How Does SAP R/3 Manage Data?

The various functions of SAP R/3 are linked together through a central database which is shared by everyone in the entire system.

The central database means that data need only be entered once. This eliminates data entry redundancy and ensures the consistency and integrity of the data. It saves input effort and keeps the system efficient.

SAP R/3 uses "master data" to organize and store information in the central database. Master data forms the basis for all system processing.

Some types of master data include:

Customer
Material
Vendor
General Ledger

SAP R/3 is a business application that integrates a company's core business functions seamlessly and efficiently.

The SAP R/3 system is made up of modules which a company can adopt in whole or in part.

The system "maps" an organization into various business units (e.g., Client, Company, Plant, Storage Location) for the purpose of organizing the assembly and distribution of information.

An organization's data is maintained in a central database, which is shared by all units. This assures data consistency, integrity, and the overall efficiency of the system.