SAP Overview (2)

February 12, 2009 by mySAP
Filed under: SAP Overview

Let we continue on SAP Overview.

The first SAP Overview article talks about what SAP is and Oraganizational Structure of SAP system. This article will describe the rest of SAP Overview.

SAP Data

SAP stores data in system in three forms.

1. Master Data: Basically Master data is static and generally does not change once it has been added to the system. For examples of Master Data are customer master records and vendor master records. Customer master records contain customer names, customer addresses, or a customer’s credit information. Vendor master records contain vendor name, vendor address, and vendor contracts.

2. Transactional Data is associated with the processing of specific business transactions and is unique to each transaction. While Master Data is thought of as static information, Transactional Data is the variable that changes based upon each business transaction.
qqFor example, when a sales order is completed, SAP will check the customer’s pricing information in Master Data automatically. SAP calculates the customer’s pricing information to sum the total amount of the product ordered (Transactional Data). The result is an invoice with this sum calculation that will be sent to the customer.

3. Table Data is established at the time SAP is implemented and remains behind the scenes to most users.
qTable Data is the information that is set up to configure the SAP system for the organization’s specific needs. Examples of Table Data include payment terms, tolerance settings, and pricing condition labels.
qTable Data also helps control how Master Data and Transactional Data are set up and work together. For example, Table Data can define the fields that appear on the Customer Master or Material Master.

Let’s take a look at how SAP is structured to better understand that how the SAP system is designed for the end-user.

SAP is a modular system that consists of individual applications called application modules.

Application modules can be grouped together to include a component.

All SAP components link into a central database which connects several business activities of the company and this central database is where all company data is stored.

Application modules are where most day-to-day tasks are performed. Each application module manages a different business function in SAP, designated by a two-letter code.

SAP implementations include the modules and module tools as follow:

Financial Accounting (FI)
Controlling (CO)
Fixed Assets Management (AM)
Project System (PS)
Sales and Distribution (SD)
Materials Management (MM)
Production Planning (PP)
Quality Management (QM)
Plant Maintenance (PM)
Human Resources (HR)
Business Workflow (WF)
Industry Solutions (IS)

Regard to key benefit of using SAP, SAP information is processed real-time, providing updated information as soon as data is saved into the system. Because modules connect the business activities of the company in one central database. SAP is referred to as an integrated system.

With the combination of integration and real-time processing, employees across the company can view and use the most up-to-date data from their own desktops.

For example, when a goods receipt is recorded in the warehouse, the value of the inventory account in the balance sheet is automatically updated to reflect the increase in value.

SAP Overview Summary

What we have learnt from the SAP Overview article are:

SAP is made up of individual application modules, each covering a different business function.
SAP application modules link into a central location where data is stored.
SAP includes Table Data, Master Data, and Transactional Data.
SAP reports information in different formats to various levels in the company.
SAP is a completely integrated system allowing for real-time functionality across the organization.

I would apprecite if you could give me your comment/suggestionc for this topic. You can find more information about SAP at http://th.wikipedia.org/wiki/SAP. Thanks so much for all you