SAP- INTRODUCTION (An introductory Manual by Global Cynex)

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SAP- INTRODUCTION (An introductory Manual by Global Cynex)

This manual will give an overall of picture of SAP & ERP market and the opportunities awaiting the
prospective professionals who want to make it into SAP consultancy which has vast opportunities

1. Introduction to SAP & ERP
2. SAP-History, Evolution & Market position
3. SAP Releases, Versions, Service packs/ Patches, Country specific Add-on components/ settings,

Modules-Core modules & Additional modules, New dimension products
4. 4a. Scope & Position of SAP Consultants in the Organizational Structure

4b. Scope of SAP Projects / Employment opportunities
5. SAP R3 –System Architecture/ System Landscape in a Live environment and Training Environment
6. Concept of Client in SAP and client copy procedures
7. SAP-Project Implementation Methodology
8. Documentation for learning individual module / Course Curriculum
9. SAPNet / Online Service Support, OSS Note
10. Customizing / Implementation Guide (IMG) –brief introduction, Data in SAP: Input data, Transaction

data, Output data
11. Profile of Global Cynex and how it is positioned to handle the training of SAP its contact addresses

1. Introduction to SAP & ERP:
SAP is a ERP (Enterprise Resource Planning) software:

ERP: Definition
“A packaged business software system that lets a company automate and integrate the majority of its
business processes; share common data (ensuring data integrity) and practices across the enterprise and
produce and access information in a real-time environment.”

2. SAP-History, Evolution & Market position:
In 1972, five former IBM employees -- Dietmar Hopp, Hans-Werner Hector, Hasso Plattner, Klaus Tschira,
and Claus Wellenreuther -- launch a company called SAP Systems Analysis and Program Development in
Mannheim, Germany. Their vision: to develop standard application software for real-time business
processing.
One year later, the first financial accounting software is complete, forming the basis for the continuous
development of other software components in what later came to be known as the "R/1 system." "R" stands
for real-time data processing.
By the end of the decade, intensive examination of SAP's IBM database and dialog control system leads to
the birth of SAP R/2.
The 1980s: Rapid Growth
The SAP R/2 system attains the high level of stability of the previous generation of programs. Keeping in
mind its multinational customers, SAP designs SAP R/2 to handle different languages and currencies. With
this and other innovations in SAP R/2, SAP sees rapid growth.

The 1990s: A New Approach to Software and Solutions
SAP R/3 is unleashed on the market. The client-server concept, uniform appearance of graphical interfaces,
consistent use of relational databases, and the ability to run on computers from different vendors meets with
overwhelming approval. With SAP R/3, SAP ushers in a new generation of enterprise software -- from
mainframe computing to the three-tier architecture of database, application, and user interface. To this day,
the client-server architecture is the standard in business software.
1996: 1,089 new SAP R/3 customers, more than 9,000 installations worldwide. 1997: employee strength
12,900
Around 2000, mySAP strategy announced heralding new direction for company and product portfolio

The 2000s: Innovation for the New Millennium:
With the Internet, the user becomes the focus of software applications
2004: 84,000 installations worldwide, 1,000 partners, over 25 industry-specific business solutions (IS
solutions like Auto, Retail, Pharma, Telecom, Media, Oil & Gas etc.,) and more than 24,450 customers in
120 countries. SAP is the world's 3rd largest independent software vendor.

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Market Position: In India SAP has more than 600 customers and 1000 installations (more than 60% of
market share) 3rd largest market for SAP apart from UK & USA

3. SAP Releases, Versions, Service packs/ Patches, Country specific Add-on components/ settings,
Modules-Core modules & Additional modules, New dimension products:

3a) Releases R1, R2 (mainframe version), R3 Æ1990s

3b) SAP versions & Country versions:

Version Year of launch Support from Country specific (India Version) CIN

SAP up to

2.2X End 1998 CIN version ÆR/3 Remarks/ Support until
Version
3.0B, C, E, End Oct’98
G, 3.1G, CIN 2.0CÆ3.0F
4.0A End Mar00
1997 End Sep00 CIN2.1BÆ3.1H Dec 2003
3.0D Oct’00 CIN2.2BÆ4.0B
End Dec03 CIN 3.0AÆ4.6B Add-on component/ patch until 4.6C
3.0F CIN 4.0A Æ4.6C Mar 2006

3.1H CIN 4.0AÆ4.7 Packaged along with R/3 / integrated

3.1i

4.0B 1999 End Dec03
4.5A
4.5B 2000 End Oct99 (India specific Chart of Accounts, CAIN instead of INT (International
4.6A chart of Accounts)
4.6B End 2000 End Dec03
4.6C
4.7 Q1,2003 (R3 End Sep00

Enterprise verion) End Dec03

Latest version: 4.7 Q1, 2006

SR1ÆAug 2004 Q3, 2007 (core
4.7)
Q3, 2005 (ent
extensions 1.1)

3c) Country specific settings/ customizations available in SAP:
i) Installable country versions in Customizing setting (SPROÆGeneral settings) with relevant
chart of accounts (FICO) & HR / Payroll settings
ii) Purchase Account Management applicable to certain European countries like (feature needs
to be activated in customizing setting)
iii) EWT (Extended Withholding Tax) functionality applicable to certain countries

3d) Modules, Sub-Modules:

Functional

Module Description Remarks

FI-CO * Finance & Controlling MRP most important sub-module, PP-PI for Process Industries

MM* Materials Management Now it is very common
More suitable for Project based manufacturing / Machine tool
SD* Sales & Distribution manufacturers (ABB, BHEL, Triveni Engg) , Software companies
(Infy, Satyam)
PP* Production Planning Payroll most important sub-module

(PP-PI) Triveni Engineering
Very common with US & Gulf clients (part of Logistics Execution)
PM Plant Maintenance KMAT (Configurable materials) projects are by an entity itself with
certain clients, Workflow configuration very popular with US clients
QM Quality Management now

PS Project System

HR Human Resources
CO-PA
Controlling-Profitability
CS analysis
EIS
Customer Service
WM
SAP office & Executive Information
CA (Cross Systems
Applications)
Warehouse Management

Work flow, SAP mail,
Configuration,

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*Core modules
(SD, MM & PP are the important modules of Logistics i.e., from procurement to sales)

Technical: System Administration of SAP R3
Basis
ABAP/4 (Advanced Business Application
Programming Language (4th Genration
ALE, EDI, IDoc,
BAPI, RFC Language)

Application Link Enabling, Electronic Data Features / technical components
available in SAP to communicate and
Interchange , Intermediary Documents, exchange information with external SAP
R3, R2 / non-SAP systems
Business Application Programming

Interface , Remote Functional Call

3.e) New Dimension Products:

SEM (Strategic Enterprise Management), mySAP SCM
PLM (Product Life Cycle Management) mySAP CRM
APO (Advanced Planning & Optimization)
SRM (Supplier Relationship Management) (Requires
SAP Netweaver_

3.f) Other Products: BW- Business Information Warehouse: Needs RFC connection with SAP R3 for
data extraction

4.a) Scope & Position of SAP Consultants in the Organizational Structure:

Some SAP team sizes in consultancy organizations:
Satyam: 1200, IBM > 1500, Accenture>1500 , Siemens >800, Bristlecone>600, Digital/ HP> 1000,
Congnizant>100 (acquired Ygyan), Vmoksha>50. There are more than 30 implementation & supportive SAP
consultancy firms

4b) Scope of SAP Projects / Employment opportunities:
i) Greenfield (New) & Global implementations (across countries for homogenous business
practices-Molex, AT & S, MNC companies). Currently lot of SMB (Small & Medium Business)
implementations are going on in India for e.g., Nilkamal Plastics, Jyothi CNC automation,
Jupiter Knitting etc.,
ii) Upgrade to higher versions & Enhancement of existing versions to improve utilization and
business efficiency (ABB, AT & S, Alembic etc., )
iii) Support projects (helpdesk support for day to day problems, minor improvements based on
tickets using CRM / workflow packages like Remedy, Lotus notes etc.,
iv) Training of individuals, corporate users etc., Training is also part of implementation
v) Newer versions of SAP & New generation products create a demand for consultants

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South Cross Road, Basavanagudi, Bangalore 560 004, Tel : +91-80-
51203956 / 51312183, Fax: +91-80-51312184

SAP implementation/ upgrade/ support projects are executed under VPN (Virtual Private Network &
Bonded warehouse environments) mostly, with stringent SLAs (Service Level Agreements) & IP
(Intellectual Property) requirements of the clients

5. SAP R3 –System Architecture/ System Landscape:

5a) Live implementation/ support environment: System Landscape consists of DEV, QAS, PROD
servers (Development, Quality, Production servers) to ensure that configuration settings/ changes
are released / transported to Project Leaders/ Process owners (normally in support environment) and
systematically and approved by them from DEV server to QAS server, tested in the QAS server to
check the performance (unit and integration testing) before it is released to Production Server. SAP
Licenses are maintained by Basis Administrator through OSS userid (Online Support Service Userid
which is given by SAP to its customers. Normally it is a 3-tier architecture viz., Central Instance (SAP
R3 instance) & Database instance (it can be oracle, MS-SQL) on separate servers connected to
Clients / user PCs (which are installed with SAP GUI (Graphical User Interface). This kind of
installation is also termed as Distributed System viz., Central instance host and Database instance
host separate)
Some sample of number of users: ONGC: more than 1000 users, Ericcson>3000 users

5b) Training Environment: System Landscape consists of DEV & PROD servers tied up in a logical
loop (no physical DEV, PROD servers will be there) in a single server connected to the clients. It is
also a 3-tier architecture but normally Central instance & Database instance are on the same server
(Central System host). This installation is termed as Central System

In both the above architecture /environment any customizing setting will lead to a pop-up screen
(Cutomizing request/ prompt) with a unique identity key (assigned to the consultant by system/ BASIS
support team). These customizing settings are then to be released by individual consultant to the project
leader/ process owner through Customizing & Transport Organizer (Transaction code SE10-Transport
Organizer). Details under Transport Management System (TMS) . Customizing requests will have Source &
Target clients and the owner of the request.

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6. Concept of Client in SAP & Basic Customizing settings required to set-up Organizational
Structures:

“CLIENT” in SAP terms is different from Client-Server concept in the sense that SAP Client is the highest
level at which the data is retained. It holds the data of underlying companies, Controlling Area, Business
Area, Chart of Accounts, Sales Organization, Plant, Warehouse etc., of the underlying companies. But there
are still some settings like Calendar which are common across clients.

Standard Clients supplied along with SAP

Client Standard Client Client IDES Demo Client (separate license required)
no Description no Description
000 800
001 Earlywatch client 810
066 820

Clients 000, 001, and 066 are part of the R/3 delivery system. Customers are not allowed to work in 000 &
006. Although one may work in client 001, SAP recommends that you create a new client as a copy of client
000 and work in this new client.
Each new client in the ASAP three-system landscape is created from client 000 with the client copy
tool. After post-installation activities are completed in the development system, the client copy tool is
used to create clients CUST and TEST. At some point in the implementation process, the quality assurance
system is installed and requires at least one client, the quality assurance test or QTST client. In addition, a

Address : SG Softech (Ind) Pvt Ltd, 1St Floor, Honnam Complex, 8/12,
South Cross Road, Basavanagudi, Bangalore 560 004, Tel : +91-80-
51203956 / 51312183, Fax: +91-80-51312184

training client or TRNG may be required. During the final stages of implementation, the production system is

installed and the production client PROD is created.

ASAP-System Landscape Methodology (1) ASAP-System Landscape Methodology (2)

Basis Administrator will copy the Client 000 (allowed namespace 002 to 999) to DEV, QAS, PRD servers.

7. Project Implementation Methodology: SAP recommended Methodology is ASAP (Accelerated SAP)
Stages of ASAP methodology depicted in the pictorial below

Key ASAP Deliverables as depicted below
A model Go-Live Project:

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51203956 / 51312183, Fax: +91-80-51312184

In terms of implementation approach we can classify it into Big-bang implementation & Phased
implementation approach.
Companies follow Big-bang approach (Implementation of All modules at all locations totally migrating from
legacy system to SAP R3) at one stroke e.g., TVS motors, In Phased approach or they go for few core
modules in Phase I at one location / multiple locations and remaining additional modules at other locations
at a later phase e.g., Triveni Engg, Navin Flourine etc.,

8. Documentation for learning individual module / Course Curriculum:
7.a) Training Material organized by Global Cynex
7.b) SAP-Introduction –document organized by Global Cynex
7.c) Learning documentation list given in separate Annexure for individual module

9. SAPNet/ Online Service Support, OSS Note

SAPNet - R/3 Frontend (formerly Online Service System (OSS)) provides the infrastructure for SAP's R/3

Service & Support and is the primary medium for problem management. It is the technological link between

customers, SAP partners and SAP. Beyond this, SAPNet - R/3 Frontend provides access to valuable

information about known problems and helps you resolve them on your own or with the help of the SAP

Support Team. SAP customers have free access to SAPNet - R/3 Frontend wherever they are 24 hours a

day. They can also access through web-browser at http://service.sap.com/login with the required userid and

password. The following are examples of tasks that can now be performed via SAPNet:

. Searching for SAP information . Requesting new SAPNet users

. Searching for R/3 notes . Requesting SSCR keys.

. Downloading SAP patches

10. Customizing / Implementation Guide (IMG) -brief introduction, Data in SAP: Input data, Transaction
data, Output data:

Customizing of SAP R3 refers to tailoring a standard ERP package to suit a customer’s business

processes or mapping of SAP to customer’s business processes. Customizing (IMG settings) can be broadly
modularized into Reference IMG (Standard SAP settings), Enterprise IMG (settings relevant to the
customer/ organization), Project IMG (settings relevant to only particular project) This is done by both
Functional & Technical consultants by

i) setting up structural framework or Definition /Assignment for various organizational
elements like Finance Controlling, Sales & Distribution, Materials Management, Production
Planning etc.,

ii) Critical customization settings done to turn ON & OFF certain screens and fields and to control
data flow during transactions

iii) There are also some vital settings like Setting Valuation Area, Activating Batch
Management/ Split Valuation where he shouldn’t make a mistake

iv) Consultants should also device fool proof methods to avoid replication of master data

when implemented across plants and companies for a client

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South Cross Road, Basavanagudi, Bangalore 560 004, Tel : +91-80-
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Assignment of user roles and profiles: SAP has more than 500 standard user roles and profiles (like
Purchasing Manager, Invoice Clerk etc.,) who are authorized to only certain transaction codes. Basis
Administrator assigns the user roles and profiles based on both functional and technical consultant’s
requirements

Data in SAP can be broadly sub-divided into Input data, Transaction data & Output data:

Input Data: Inputted by users while performing their business functions like creating a master data, raising a
Sales/ Purchase Order/ Invoice/ Credit Memo/ Debit Memo/ Stock Transport Order etc.,

Transaction Data: This is internally generated System data controlled by Customizing settings and
structural settings
Output Data: Output Data generated by SAP through Standard Reports, SAPscript, SMARTFORMS &
custom ABAP reports. IS (Information Systems) Module deals with standard reporting needs for all the
modules

11. Profile of Global Cynex and how it is positioned to handle the training of SAP its contact
addresses:

GLOBALCYNEX, INC., was established in 1998, to provide the technical assistance to corporations in order
to achieve their data processing goals in various fields.

Global Cynex is armed with Release 4.7 SR1 –latest in the market with a structured approach,
excellent infrastructure & practical orientation with live project simulation. Future plans include tie-ups
with consulting houses for development projects, placement assistance etc.,

For the profile of Global Cynex please visit the website at http://www.globalcynex.com/

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