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ERPFUNDAMENTAL CONCEPTS

Fall2009

CSCI5720Enterprise&eBusinessIntegration

Aprocessviewofbusiness
Trigger Step One Step Two Step Three Step Four Outcome

BusinessProcess:
Cutsacross functionalbusinessareas. Involvesexchangeofinformation. Mayinvolveexchangeofotherresources. Sh ld be Should b accomplished li h din i amannerthat h b best accomplishesthedesiredoutcome. Maybeprogressivelydecomposedintosubprocesses.

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Informationdrivingandwithinprocesses
ThreeclassesofERPdata:
Organizationaldata:modelstheoverallstructure ofan organization. o ga a o Establishes s ab s esrelationships e a o s ps. AkeyelementinERPconfigurationisdefiningandmapping relationshipsbetweenorganizationalentities. Masterdata:person,place,orobjectdefinedforaspecific organizationlevel.Storedcentrally andshared among businessprocessesandapplications. T Transactional i ld data:data d created dasaresult l of fbusiness b i processsteps. Documentprincipledatafromvariousbusinessprocesses isstoredwithin"documents".

OrganizationalLevelswithinSAPERP
Clienthighestlevelwithinorganizationhierarchy. Containsallotherorganizationalunits. CompanyCoderepresents representsadistinctlegalentity
Smallestorganizationalunitforwhichacompleteself containedsetofaccountscanbedrawnupforpurposes ofexternalreporting. FocalelementinFinancialAccounting. Generallydoesnotspancountryborders borders. ClientmustcontainatleastoneCompanyCodeinorder tobelive.

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OrganizationalLevelswithinERPsim
Client375 German MuesliInc.
Company CodeAABerlin Muesli Company CodeBB Hamburg Muesli Company CodeCC MunichMuesli

Plant
Plantorganizationalelementwhere:
Productsand/orservicesarecreated. Materialsarestoredordistributed distributed. Productionplanningiscarriedout. Serviceormaintenanceisperformed.

Aplantcanbeacollectionofbuildings,anentire building,orpartofabuilding. Aplant l tcanb belong l t toonly l 1companycode. d Acompanycodecanhave0ormoreplants.

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OrganizationalLevelswithinERPsim
Client375 German MuesliInc.
Company CodeAABerlin Muesli Company CodeBB Hamburg Muesli Company CodeCC MunichMuesli

PlantAA BerlinMuesli Plant

PlantBB Hamburg MuesliPlant

PlantCC MunichMuesli Plant

Masterdata
MasterDatanonorganizationaldatathatisshared amongvariousbusinessprocesses.
Examples:vendordata data,customerdata, data materialdata. data Masterdataissegmented intoviews.Withinamaster datarecord,differentprocessesandorganizational levelsneeddifferentinformation.

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Masterdataexample:MaterialMaster
MaterialMasterstoresinformationonmaterials handledwithinacompany.Differentorganizational processesand/orareasneeddifferentpartsof MaterialMasterrecord:
Procurementfocusonbuying Salesfocusonselling Productionfocusonmaking Accountingfocus focusonrecordinginformation Warehousefocusonstoring BasicDatarelevantforallaboveandonesnotshown

MaterialMasterViews

MaterialMaster
BasicData Financial Accounting Data Management A Accounting ti Data Purchasing Data Warehouse Management Data MRPData ForeignTrade Data

SalesData Plant& StorageData

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Masterdata
MasterDatanonorganizationaldatathatisshared amongvariousbusinessprocesses.
Masterdataissegmented intoviews.Withinamaster datarecord,differentprocessesandorganizational levelsneeddifferentinformation. Masterdatasegmentsmaintained byvarious organizationallevelsandprocesses.
Thedefinitionofdatainamasterdataviewmayvary betweenorganizationalentities.

MaterialMaster
Materialsarecategorized(andviewsmaintained)by howtheyareused.
Rawmaterials (ROH)purchased (ROH) purchasedfromavendorand usedinproduction.Typicallynotsoldtocustomers. Semifinishedgoods (HALB)typicallyproducedin houseandthenlaterusedinproducingfinishedgoods. Finishedgoods (FERT)producedinhouseforsale. Tradinggoods (HAWA) (HAWA)bought boughtfromvendorandsold withoutadditionalproductionnecessary. Nonvaluatedmaterials(UNBW)boughtandtrackedby quantityininventory(notfinancialvalue)only.

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TransactionData
TransactionData iscreatedasaresultofbusiness processsteps.
Combinesorganizationaldata data,masterdata data,and"situation situation data"i.e.dataspecifictothetask(who,when,where,how much).
Masterdata Customer Vendor Material
Organizational data Client CompanyCode Plant

Transaction Data

Situationdata Who When Where Howmuch

Documents
Transactiondataisstoredwithintransaction documents.
AllERPtransactionsthatwritetothedatabasegenerate documents. Transactionsmaybereversed,butdocumentsmaynot bedeleted. Somedocumentsareprinted(invoices,purchaseorders, goodsmovements),othersarevirtualandmaynotever beenprinted(paymentreceived,goodsmovement).

Documentcreationmaytriggerbusinessprocessesor businessprocesssteps.

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Reporting
Reporting:user'sabilitytoviewandanalyze informationneededtoaccomplishtasks.
Workliststasks taskstobecompleted(pickingdue) Onlinelistsmasterdatalists(materials,vendors)
Showninlistview,gridview,orALVtreeview Canbeexportedtootherapplications

Withongoingproductionofdocumentsandtransaction data ERPsystemsgeneratelargevolumesofdata data, data.

Datamustbeaccessible,butneednotstayactiveinthe productionsystem.Movementtoadatawarehouse typical.

ReportingwithinSAPERP

SAPERP
Lists

Business Processes

OnlineTransactionProcessing (OLTP)Environment

Reports

Analytics

OnlineAnalyticProcessing (OLAP)Environment

SAPBW

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BusinessIntelligence
SAPERP

SAPCRM

SAPBW

SAP... Other

NonSAP

Copyrights
PresentationpreparedbyandcopyrightofDr.Tony Pittarese,EastTennesseeStateUniversity,Computerand InformationSciencesDept.(pittares@etsu.edu) Podcastlecturerelatedtothispresentationavailablevia ETSUiTunesU.
Microsoft,Windows,Excel,Outlook,andPowerPointareregisteredtrademarksofMicrosoftCorporation. IBM,DB2,DB2UniversalDatabase,Systemi,Systemi5,Systemp,Systemp5,Systemx,Systemz,Systemz10,Systemz9,z10,z9,iSeries,pSeries, xSeries,zSeries,eServer,z/VM,z/OS,i5/OS,S/390,OS/390,OS/400,AS/400,S/390ParallelEnterpriseServer,PowerVM,PowerArchitecture,POWER6+, POWER6,POWER5+,POWER5,POWER,OpenPower,PowerPC,BatchPipes,BladeCenter,SystemStorage,GPFS,HACMP,RETAIN,DB2Connect,RACF, Redbooks,OS/2,ParallelSysplex,MVS/ESA,AIX,IntelligentMiner,WebSphere,Netfinity,TivoliandInformixaretrademarksorregisteredtrademarksof IBMCorporation. LinuxistheregisteredtrademarkofLinus Torvalds intheU.S.andothercountries. OracleisaregisteredtrademarkofOracleCorporation. HTML,XML,XHTMLandW3CaretrademarksorregisteredtrademarksofW3C,WorldWideWebConsortium,MassachusettsInstituteofTechnology. JavaisaregisteredtrademarkofSunMicrosystems, Microsystems Inc Inc. JavaScriptisaregisteredtrademarkofSunMicrosystems,Inc.,usedunderlicensefortechnologyinventedandimplementedby Netscape. SAP,R/3,SAPNetWeaver,Duet,PartnerEdge,ByDesign,SAPBusinessByDesign,andotherSAPproductsandservicesmentionedhereinaswellastheir respectivelogosaretrademarksorregisteredtrademarksofSAPAGinGermanyandothercountries. BusinessObjectsandtheBusinessObjectslogo,BusinessObjects,CrystalReports,CrystalDecisions,WebIntelligence,Xcelsius,andotherBusiness ObjectsproductsandservicesmentionedhereinaswellastheirrespectivelogosaretrademarksorregisteredtrademarksofBusinessObjectsS.A.inthe UnitedStatesandinothercountries.BusinessObjectsisanSAPcompany. ERPsim isaregisteredcopyrightofERPsim Labs,HECMontreal. Otherproductsmentionedinthispresentationaretrademarksoftheirrespectiveowners.