SAP ERP

(Systems, Applications &

Products in Data Processing)

Best Run for

Business

Nithyanand D
Senior Professional Application Architect – SAP
DXC Technologies
 • ERP term used for software that controls whole
organizations different departments.
Introduction – • Competitors: Oracle, People soft, JD Edwards, BAAN,
RAMCO are some of the ERP software systems, but
ERP(Enterpris SAP is the market leader.
• Consider a large enterprise like Pricol, which has
e Resource number of divisions under it.
• There is a Financial Department, Logistics Section,
Planning) HR, Warehousing, Sales and Distribution etc.
• All these need to be integrated together, for effective
functioning.
• This is done by a specific software known as
Enterprise Resource Planning or ERP.
• Use of this package makes it possible to track and
manage, in real-time, sales,
production, finance accounting and human resources
in an enterprise.
 • Traditional computer information systems used by many
businesses today have been developed to accomplish some
specific tasks and provide reports and analysis of events that
have already taken place.
• Examples are accounting general ledger systems.

Why SAP? • Occasionally, some systems operate in a “real-time” mode

that is, have up to date information in them and can be used
to control events.
• A typical company has many separate systems to manage
different processes like production, sales and accounting.
• Each of these systems has its own databases and rarely
passes information to other systems in a timely manner.
• SAP takes a different approach.
• There is only one information system in an enterprise, SAP.
• All applications access common data. Real events in the
business initiate transactions.
• Accounting is done automatically by events in sales and
production.
• Sales can see when products can be delivered.
• Production schedules are driven by sales.
• The whole system is designed to be real-time and not
historical.
 • SAP the company was founded in Waldorf,
Germany in town of Heidelberg in 1972 by
five ex-IBM engineers.

SAP - • The full name of the parent company is SAP

AG(Aktien means shares, and Gesellschaft
Introduction means business association in this context).
• The first releases were R1 and R2 which were
mainframe only applications. The "R" was for
"Realtime data processing"
• SAP started as R/2 that is Real time
architecture with 2 servers
• In 1979 SAP released SAP R/2 into the
German. The first integrated, enterprise-wide
package and was an immediate success.
SAP -
Architecture
• SAP R/3 Architecture can be divided
into three main divisions depending
• on their functionality.
• The classification includes:-
• 1) Database Layer
• 2) Application Layer
• 3) Presentation layer
 This layer stores all the data
SAP – that moves through the SAP
Architecture architecture.

(Database
Layer)
Database
Database
Management
Server
System (DBMS)
 • Database management System or DBMS, is a
SAP – set of software programs used to store,
update or delete data from the server.
Architecture • The user can view and organize information
according to one’s criteria.
(Database • Enable security features to prevent
Layer) unauthorized access SAP is compatible with
any database system.
• In addition SAP has developed its own
database known as HANA, if needed.
• The database layer may be combined with
the application layer onto a single host or
both layers may exist independently.
• It is always better to implement the latter, as
this reduces bottleneck in traffic flow.
 • Whenever a user sends a request from the
presentation layer, the logical operation is
provided by the Application Layer.
SAP – • In theory, only one application server is
Architecture(Application required to process requests.
Layer) • But in practise, there will be ‘n’ number of
application servers running on various
systems.
• The load distribution between the application
servers is provided by the
• message servers.
• The message servers contain data of how
many application servers are
• currently online and the distribution of load
between them.
 • The Presentation Layer consists of the SAP GUI (Graphical
User Interface) which acts as an interface between the user
SAP – and the other two layers.
• User sends request from the Presentation Layer which in

Architecture turn, gets processed by the Application Layer.

• Data is then retrieved from the database layer and passed

(Presentation back to the Presentation Layer in the reverse order.

• The control of a program switches from one layer to another
during each operation.
Server) • When the Presentation Layer is ready, the user can enter
input in
• the screen.
• At that time, the Application Layer will not be accessible.
• Once the data gets entered, control switches over to the
Application Layer.
• Until the Application layer completes the processing and
initiates a new screen, user cannot input any data.
• The procedure, in which a new screen is presented before
the user, is called a dialog step.
 • Each functional division within an organization is
divided into modules.

SAP – • SAP started with financial application.

• Modules such as Advanced Planner and Optimizer

Functional (APO)
• Business Information Warehouse (BW)

Modules • Customer Relationship Management (CRM)

• Supply Chain Management (SCM)
• Human Resource Management Systems (HRMS)
• Product Lifecycle Management (PLM)
• Exchange Infrastructure (XI)
• Enterprise Portal (EP) and
• SAP Knowledge Warehouse (BW)
• The Company also offers a new technology platform,
named SAP Netweaver
SAP –
Functional
Modules
 Financial
SAP – Controlling (FICO)
• SAP FI (Finance) : Finance module
Application consider to be the base module.
Modules • It covers vital areas such as
• General Ledger (GL),
• Account payable (AP),
• Account Receivable (AR) and
• Asset Accounting (AA).
 • Controlling (CO): Controlling is kind of
SAP – sister module for FI.
Application Use for internal controlling and
internal reporting.
Modules • Cost Center Accounting (CCA),
• Profit center accounting (PCA),
• Product costing (PC),
• Profitability Analysis (COPA) and
• Internal Order (IO).
SAP – Application Modules
SAP – Application
Modules

Sales Distribution (SD)

• SD is predominantly controls sales
and it is also heavily tied up with
MM.
• It controls customer master data,
sales, plants, sales organizations
and sales conditions.
SAP – Application
Modules
Material Management
Material Management deals with the
movement of materials via other
modules like logistics, supply chain
management, sales & delivery,
warehouse management, production
& planning.
SAP – Application
Module

Human Resource (HR)

• HR modules handles all
human resource activities such
as resource hiring, salary,
employee benefits etc.
• It is highly integrated with FI
and CO modules.
Reference Links
• https://store.sap.com/en/?campaigncode=CRM-YD21-SOC-0STORPZ&source=ppc-SAPSTOREPS-G
L-202121&gclid=CjwKCAiA4rGCBhAQEiwAelVti83BZaz8aKlWbFtH-RW0sWInS_PrQdEMgQLF7lvGm
b4Ph_06BdQvhRoCuI0QAvD_BwE
• SAP.com - SAP® India - Explore All Our Solutions
• https://performancemanager.successfactors.eu/login?company=learninghub
• https://www.sap.com/india/products/business-one.html
Questions?
Thank You All.