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ERP Implmentation -
Implantation Guide
Prepared by:Dipesh Patel - 3903865
Rikin N. Patel 3903861
Hemant Patel 3903863
Rikin R. Patel 3903860
Kashyap Patel 3903856
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Configuration or Customization
Configuration is arranging or mapping business scenario's
provided by the SAP standard systematic approach. In
short, configuration means how information is formatted
and displayed.
Customization arises when there is gap in between the
sap standard and business requirement, at that time we
need to custom the SAP requirement .For this SAP hasprovided us ABAP Program editors etc., are give to use
for customization.
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Configuration or Customization
y The software we use this semester is configured, for a company called IDESbut it is not customized (= vanilla SAP).
y Configuration specifies company names, organizational structure, chart ofaccounts, etc., which clearly differ from organization to organization.
y Configuration is achieved by entering values in tables using theImplementation Guide (IMG) part of R/3.
y Changing processes in organizations is hard
y Customizing the software is hard (programming) and causes problems forsoftware upgrades. (Recall, customizing is heavy-duty change, not just
configuration.)
y Knowing what processes are best for your organization is hard (the bestplaced person to guide this is the process owner)
y Over time, both business needs and the software evolve. The goal is on-going fit.
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Methods for Implementing & Configuring SAP
SAP R/3 includes several tools to facilitate configuring SAP
and continuing support .
The R/3 Reference Model - describes the business processesincluded in the standard R/3 system as well as the relationship
among the different application modules.
The Implementation Guide (IMG) - guides users in matching
their business requirements with the SAP standard software.
The Procedural model - is used as a navigator to guide you
through the whole implementation and configuration process.
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Implementation Guide Variants
The SAP Reference IMG:
It describes the business processes included in the standard R/3
system as well as the relationship among the different
application modules The SAP Reference IMG contains the full functionality of all
possible Customizing settings across all countries and
application components.
It contains all IMG activities, sorted by application component
and into the categories General Settings and EnterpriseStructure
This contains work steps and documentation for all application
components delivered by SAP.
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The Project IMG:
A project IMG is the implementation guide for a Customizing project.
It contains all the Customizing activities which are to be performed in
the project. You can determine the project scope by countries, components or
Customizing activities.
A project IMG is based on the SAP Reference IMG, which can, for
example be reduced to the project scope by selecting countries and
components.
It guides users in matching their business requirements with the SAP
standard software.
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Project Views
It is used as a navigator to guide you through the whole
implementation and configuration process.
These are based on a particular Project IMG and are being created byselecting attributes by specified criteria.
Project team members can be assigned to a view. The project team
members get all project views in their list to which they have been
assigned.
Project views are useful:
in implementation projects
in release and system upgrades
for legal changes
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Implementation Guide
IMG is hierarchically structured and is based on the application
component hierarchy.
The Implementation Guide (IMG) is the tool used to configure the SAP
System to the requirements of a company and support their business
needs. Each of the steps required for the implementation are being
documented in detail in the IMG.
Applications are created to meet business requirements.
Financial Accounting
Materials Management
Sales and Distribution
Human Resources
Cross- application functions are developed.
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Basis configuration takes place.
Global settings are set as default in the SAP system.
The structure is defined to match the organizations business
function. Using the IMG, it is possible to train end users in the customization
techniques and options so they can configure the system
themselves according to their business and organizational needs.
In SAP R/3 system in latest releases, the IMG includes around
10,000 configuration objects.
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Implementation Guide (cont..)
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Activities of IMG
There are two kinds of IMG activities:
Activities with executable transactions:
These contain documentation, attributes, a maintenance
object and process assignments. You can go to Customizing to make settings, check them
with check programs or transfer data, via the Customizing
objects in the maintenance object.
The steps required are described in the IMG activitydocumentation.
You can gather IMG activities into projects by attributes.
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If you assign IMG activities to processes, you can generate
a project IMG in ASAP (ASAPIMG link).
You can recognize activities with executable transactions
by the execution icon in the IMG.
Organizational activities:
These are for documentation purposes only and do
not contain maintenance objects like activities with
executable transactions.
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Activities of IMG(cont..)
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Features of SAP-IMG
Step by Step plan for implementing the SAP modules.
Procedures that have to be performed before a certain
configuration can be made.
Documenting the SAP R/3 configuration methodology along
with the reasons for configurations.
It forms the crux of business transactions in an SAP
implementation, and how each one of the steps in various
modules have been configured.
Finally, all configurations and their releases for a particular
SAP R/3 implementation can be checked throughout the SAP
IMG.
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Benefits
Configure SAP functions in any company in a cost efficient and
quick manner.
Tailor standard functions to meet the company business
requirements.
Manage, edit and analyze the implementation, enhancement
or upgrade projects.
Document and monitor implementation phases with the help
of a project management tool.
To transfer configuration data from the quality assurance
system to the production system and thereby ensuring
consistency.
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Summary
Difference between Configuration and Customization
Methods for Implementing & Configuring SAP
The R/3 Reference Model The Implementation Guide (IMG)
The Procedural model
Types of Implementation Guide
The SAP Reference IMG
The Enterprise IMG
The Project IMG
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Summary
The Implementation Guide (IMG) - guides users in matching their business
requirements with the SAP standard software.
The Implementation Guide (IMG) is the tool used to configure the SAP System to
the requirements of a company and support their business needs.
Each of the steps required for the implementation are being documented in detail
in the IMG.
Applications are created to meet business requirements.
Financial Accounting
Materials Management
Sales and Distribution
Human Resources
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Part 2Organizational Structure
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Configuration
Defining Transportation Zones:-
In this activity, you define transportation zones according to country and
depending on your company's needs. Transportation zones represent
delivery recipient (ship-to party) regions or delivery shipper (vendor)
regions.
Company: -
A company is an organizational unit in Accounting which represents a
business organization according to the requirements of commercial
law in a particular country.
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Configuration (Cont..)
Controlling Area:-
The controlling area is an organizational unit in Accounting used to
subdivide the business organization from a cost accounting standpoint.
The decision for one or more logical controlling areas depends on thecompanys corporate policy.
Credit Control Area:-
The credit control area is an organizational unit that specifies and checks a
credit limit for customers.
A credit control area can include one or more company codes. It is not possible
to assign a company code to more than one credit control area. Within a credit
control area, the credit limits must be specified in the same currency.
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Configuration (Cont..)
Financial Area:-
The financial management area is an organizational unit within
accounting which structures the business organization from the
perspective ofCash Budget Management and Funds Management.
Company Code:-
For a company code, a complete independent accounting unit can be
represented as the smallest organizational unit in external accounting.
This includes entry of all accountable transactions and the creation of all
proofs for a legally required individual account closing, such as the balance
sheets and the profit and loss statement.
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Configuration (Cont..)
Various steps to be performed like:-
Maintaining Company Code for Materials Management
Checking for Duplicate Invoices Configure Price Change in Previous Period/Year:-
Market Price Determination or Inflation Index Adjustment
Assigning Company Code to Controlling Area
Assigning Company Code to Company
Assigning Company Code to Financial Area
Assigning Company Code to Credit Control Area
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Configuration (Cont..)
Personnel Area:-
The personnel area is an organizational unit that represents a
specific area of the enterprise and is organized according to aspects
of personnel, time management and payroll. A personnel area is
divided into several personnel subareas.
The individual personnel areas in a company code have four digit
alphanumeric identifiers.
Ex:- IPS1:-Personal area IPS1 IPSX:-Personal area IPSX
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Configuration (Cont..)
Personnel Sub-areas:- Personnel sub areas are a subdivision of the personnel area.
Personnel Sub area is defined by a four-character, alphanumeric
code. The respective country-specific control features are storedhere.
Example
If your Company code/Branches are called Personnel Areas so the
Department of each branch called personal subareas.
Personnel Area: IPS1
Personnel Sub-Area: HR, IT, ADMN, SAP, Sales....
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Configuration (Cont..)
Sales Organization:-
It is responsible for:
Distributing goods and servicesNegotiating sales conditions
Products liability and resources.
It is uniquely assigned to company code.
A company code have more than one sales organization.
In sales statistics, the sales organization is the highest summation level.
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Configuration (Cont..)
Distribution Channel:-
It is essential for sales material to reach the customer.
Represents the companies strategy to distribute products and services
to customers.
Wholesale trade
Retail trade
Internet trade
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Configuration (Cont..)
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Division:-
A division is used to group material and services.
The system uses the division to determine the sales areas a material or
a service is assigned to.
A sales organization can have several divisions but requires at least
one.
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Configuration (Cont..)
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Sales Area:-A sales area is a combination of the sales organization, distribution
channel, and division. It defines the distribution channel a sales
organization uses to sell products from a certain division.
A sales area can belong to only one company code .
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Configuration (Cont..)
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Sales Office:-A sales office is an organizational unit in sales and distribution which is
responsible for sales within a specific geographical area.
They can be used for reporting purposes. Sales offices are optional.
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Configuration (Cont..)
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Sales Group:-The definition of sales groups is optional.
You can assign a sales group to one or more sales offices.
You can assign people to a sales group.
A sales group is responsible for all items in a sales document
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Configuration (Cont..)
Purchasing Organization:-
It is an entity or organizational level that negotiates conditions of
purchase with vendors for one or more plants or specific company It is
legally responsible for completing purchasing contracts.
Company-specific: One purchasing organization procures materials
and services for one company or company code.
Plant-specific:- One purchasing organization procures for one
plant. Each plant can have more than one purchasing organizations
with different pricing condition and vendors.
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Configuration (Cont..)
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Purchasing Group:-
It is represent a buyer or a group of buyers that are responsible for a
certain type of purchasing activities.
Use
Responsible for procuring a material or a class of materials for internalunits
The contact for external suppliers
You define the purchasing group during Customizing (not part of the
enterprise structure). You do not assign purchasing groups directly to
purchasing organizations.You may define purchasing areas to describe in detail the fields of activity
of a purchasing group.
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QUESTIONS???
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