SAP Overview(1)

February 12, 2009 by mySAP
Filed under: SAP Overview

Let we start at SAP Overview

The SAPOverview will define SAP and provide some detail on its structure and function. I also describe the key benefits of SAP
The SAP was found in 1972 in Walldorf, Germany. It stands for System, Applications and Products.
The main advantage of using SAP as your ERP system are following:

SAP is a powerful tool that integrate multiple business processes and functions into one conprehensive system

SAP reduces lack of integration across business line which will raise the risk of duplication, mistakes and inconsistency data

SAP provide different approach than their competitors in market. Each piece (module like FI, MM, SD) can operate independently from all other software. And the key benefit of using this approach is that companies can implement individual module that fits the company needs, and have the flexibility to add other module later when their business grows.

the traditional system and integrated system

SAP has released several versions of SAP. The current version of SAP is ERP Central Component 6.0 (or ECC 6.0). The other verion, prior ECC 6.0, was SAP R/3 (like 4.6, 4.6C, 4.7)

ECC 6.0 make it easier to add new modules to existing modules, improving the configuration functionality. For example, in ECC 6.0 version, The customer relationship management (CRM) module functions better with the Finance (FI) module than it with did R3

With the new ECC, organization can purchase and config specific modules and solution depend on their own needs. In addition, ECC 6.0 allows organization to keep current specialize system and software (legacy system) in such a way that both systems communicate and share data in centralize database.

SAP Organizational Structure

The figure demostrates, levels are groups or departments within an organization. These groups are organized into structure and fall under a Company code and Client level.

Organizational Structure

The company code is an organizational unit used in accounting. It is used to structure the business organization from a financial accounting perspective.

This includes entry of all accounting events subject to posting and the generation of all records for a statutory individual account closing, such as balance sheets and profit and loss statements

The Client level is the highest hierarchical level in the SAP Organizational Structure. Information stored at the Client level is common to all levels, groups, and roles within the Client. A company can be in more than one Client. For example, a company may create a Client that mirrors another Client in order to provide testing environment or to provide training to their employees without affecting real customer data.

To be continue..

Please don’t hesitate to give me a comment and suggestion, if you have any question or found my mistake.

See useful SAP books:
SAP Books