Industry Overview Presentation

SAP Best Practices for Software ProviderV1.603 (US)

SAP Best Practices

General Information

SAP Best Practices for Software Provider was developed for small and midsize companies to implement a solution quickly and easily.

With a focus on the primary manufacturing business processes this package gives you built-in support for the best business practices in the industry.

Functionalities

The SAP Best Practices for Software Provider V1.603 package supports your business in the following areas :

Production planning and control

Materials management

Sales and distribution

Logistics

Accounting

Controlling

Forms and reporting

Service ManagementQuote to Cash Enterprise Management and Support

Product Development

Procurement of consumable goods and services without MRP

Revenue Recognition Processing

Sale of Software Bundle

Perpetual Software License Sales and Maintenance

Subscription-Based Software License Sales

Sales of Education and Training Services

Software Maintenance and Support Renewal

Sales of Consulting Services

Credit Memo with Revenue recognition processing

Debit Memo with Revenue recognition processing

Free-of-Charge Delivery without Batch Management and Serial number

Internal Projects for Research and Development with Int Ord

CRM Partner Channel Management

Market Development Funds for Channel Partners

Channel Partner Relationship Management

Campaign Management with Channel Partners

Lead and Opportunity Mgmt with Channel Partners

General Ledger

Accounts Receivable

Accounts Payable

Cash Management

Asset Accounting

General Cost Center Planning

Overhead Cost Accounting – Actual

Period End Closing Financial Accounting

Travel Management

Time Recording

Period End Closing Projects

Cost of Sales Accounting

Segment Reporting

Period End Closing Service Orders

Revenue Planning for service without Valuation

Document Splitting for Software Provider

SAP ERP Reports for Logistics

SAP BP for Software Provider V1.603 (US) Solution Scope

Black = Baseline Scenarios

Red = Service IndustryScenariosBlue = Software Provider ScenariosPurple = Generic CRM ScenariosGreen = High Tech CRM Scenarios

Internal Maintenance

Spot Consulting with Fixed Price Billing

Sales Contract with Fixed Price and T&M Billing

Project with Fixed Price and T&M Billing

External Procurement of Third-party Resources

External Procurement Services

Project with Milestone Billing

Sales Contract with External Resources

SAP ERP Reports for Accounting

CRM Sales

Account and Contact Management

Activity Management

Opportunity Management

Territory Management

Interaction Center Sales (with ERP Sales Order)

Pipeline Performance Management

CRM Marketing

Lean Campaign Management

Interaction Center Marketing

Lead Management

Industry-Specific Scenarios (1 of 2)

SAP BP for Software Provider V1.603 (US) provides the following industry-specific scenarios:

474: Revenue Recognition Processing

476: Sale of Software Bundle

475: Perpetual Software License Sales and Maintenance

477: Subscription-Based Software License Sales

478: Sale of Education and Training Services

479: Software Maintenance and Support Renewal

480: Sale of Consulting Services

481: Credit Memo with Revenue Recognition processing

482:Debit Memo with Revenue Recognition processing

Industry-Specific Scenarios (2 of 2)

SAP BP for Software Provider V1.603 (US) provides the following industry-specific scenarios:

488: Free-of-Charge Delivery with Batch Management and Serial number

490: Revenue Planning for Service without valuation

491: Internal Projects for Research and Development with Int Ord

489: Procurement of consumable goods and services without MRP

492: Document Splitting for Software Providers

483: Market Development Funds for Channel Partners

484: Channel Partners Relationship Management

485: Campaign Management with Channel Partners

486: Lead and Opportunity Management with Channel Partners

Purpose Revenue Recognition Process involves recognizing revenue independent

of the billing process. Based on the revenue recognition rules, and the sales, delivery, billing information, the system proposes the amount and associated G/L accounts of the revenue to be recognized so the correct financial postings are made upon its execution. .

Key process flows covered Revenue Recognition Overview Revenue Recognition Due List Batch Processing

Purpose and Benefits:

Revenue Recognition Processing (474)

Purpose This scenario deals with selling a bundled software product, where each

component has a bundle sales price set that is cumulated to be the bundled price

Key process flows covered Create Order of Sales Bundle Perform Credit Check Create Initial Invoice from Order Update Customer Acceptance Date Create Final Invoice from Order Accounts Receivable Revenue Recognition

Purpose and Benefits:

Sale of Software Bundle (476)

Purpose This scenario shows the sale of a perpetual software license with

associated maintenance and support for higher-valued software (such as enterprise software, not a shrink-wrap software model).

Key process flows covered Create Contract Maintain Credit Limit Release Order (if delivery is required) Create Delivery Create Invoice from Contract Accounts Receivable Revenue Recognition

Purpose and Benefits:

Perpetual Software License Sales and Maintenance (475)

Purpose With a subscription model, the user is only entitled to use the software as

long as the contract is valid. Contract is made for a year and customer will be invoiced monthly. Revenue will be recognized at the time of each billing cycle.

Key process flows covered Create Contract Create Invoice from Contract Accounts Receivable

Purpose and Benefits:

Subscription-Based Software License Sales (477)

Purpose The scenario deals with the sale of education services associated with

software products. Revenue will be recognized at the time of the number of hours or courses are called off through call off order.

Key process flows covered Create Contract Perform Credit Check Create Invoice from Contract Create Call-off Orders Accounts Receivable Revenue Recognition process

Purpose and Benefits:

Sale of Education and Training Services (478)

Purpose Although with a perpetual license the customer has the right to continue

to use the software indefinitely, in order to continue to have maintenance and support, these services must be renewed at the end of the first year.

Key process flows covered Create Contract with reference to the existing contract Create Invoice from contract Account Receivable Revenue Recognition process

Purpose and Benefits:

Software Maintenance and Support Renewal (479)

Purpose Sales of consulting service highlights the sale of services associated with

software products representing the number of hours for consulting or implementing. Revenue will be recognized at the time of billing.

Key process flows covered Create Contract Perform Credit Check Create Call-off Orders Create Invoice Accounts Receivable

Purpose and Benefits:

Sales of Consulting Services (480)

Purpose The scenario explains the application of customer credit to reconcile the

amount charged to the customer account. The customer may have been overcharged due to pricing conflict or error in sales document

Key process flows covered Sales Order Entry Remove Billing Block Billing Change Contract Revenue Recognition Process Accounts Receivable

Purpose and Benefits:

Credit Memo with Revenue Recognition processing (481)

Purpose The Debit Memo process is used for applying a debit to a customer

account once a determination has been made that a customer has been undercharged as a result of a pricing or sales tax rate error

Key process flows covered Sales Order Entry Remove Billing Block Billing Accounts Receivable

Purpose and Benefits:

Debit Memo with Revenue Recognition processing (482)

Purpose This scenario describes the process of providing goods to a customer at

no cost

Key process flows covered Sales Order Entry Delivery Due List Post Goods Issue

Purpose and Benefits:

Free of Charge Delivery without Batch Management and Serial Number (488)

Purpose Plan the revenue and the costs on Product and Material group Level

Key process flows covered Revenue planning on basis of historical data Revenue Plan Change Increase Plan Value using revaluation Execute Plan Assessment cycle

Purpose and Benefits:

Revenue Planning for Service without valuation (490)

Purpose In companies, various Research and Development projects are undertaken

that consume resources and incur costs or expenses. These projects are usually undertaken for future development of products. The product lines are generally determinable for such projects. The costs of these projects need to be tracked for various purposes such as cost control, return on investment calculations, tax reporting and so on.

Key process flows covered Create R&D Internal Order Plan Costs for R&D Order Settlement R&D Internal Order List Settlement Rule for Order Employee time recording Creating Purchase Order Maintain Service Entry Sheet Approve Service Entry Sheet Invoice Verification Time Sheet: Transfer to Target Components Execute Settlement –Plan and Actual Confirm Correct Settlement

Purpose and Benefits:

Internal Projects for Research and Development with Int Ord (491)

Purpose

Quotation for Procurement Stock Request for quotations for material from vendors; A price comparison list enables evaluation and follow-on activities like

sending of rejection letters and later creation of a purchase order, goods received and invoice receipt.

Key process flows covered Create Request for Quotation List Request for Quotations Maintain Quotations Compare, Select and Reject Vendors Generate Source List Convert Quotation to Purchase Order Change and Approve Purchase Order Receive Goods from Vendor Invoice Receipt by Line Item Outgoing Payment

Purpose

Consumable Purchasing Service Purchasing of consumable goods or services

Key process flows covered Purchase order creation for consumable goods Approval of purchase orders for consumables Goods receipt of consumables Purchase order creation for services Service entry sheet creation Service entry sheet approval Invoice receipt by line item Outgoing Payment

Purpose and Benefits:

Procurement of consumable goods and services without MRP (489)

Purpose The online split is provided with the new General Ledger Accounting. Documents are enhanced with additional account assignment objects, or

additional postings are done which split the original postings into lines referring to the account assignment objects.

Account assignment objects can be defined according to selected dimensions. In SAP Best Practices the dimensions are profit centers and segments.

Benefits The postings are done in real time (online). It is possible to draw up complete financial statements for the selected

dimensions at any time (segment reporting).

Key Points The online split is provided with the new General Ledger Accounting. The online split is based on segments. The online split must be activated before the start of postings in the client.

Postings done before can cause subsequent online split errors (see also note 891144).

Purpose and Benefits:

Document Splitting for Software Providers (492)

Purpose MDF or Market Development Funds are monetary funds given by manufacturers (brand

owners) to help a partner/reseller/distributor to market the manufacturer's brand. MDF funds are disbursed based on the execution of mutually agreed to marketing activities by the indirect sales partner.MDF Funds help to better manage and allocate funds to partners, provide partner self-service for requesting and claiming funds, and ensure legal compliance of funding practices.

Benefits Targeted funds for demand generation activities that will increase sales and generate leads

and business opportunities Extend marketing reach by sponsoring Channel Partners to do Trade Shows, Email

Campaigns, Seminars, Advertising, Joint Collateral, etc.

Key process flows covered Managing MDF Funds Managing MDF Programs Managing MDF Budgets Accrual Settings Managing MDF Programs with Channel Partners MDF Claims Claim Settlement

Purpose and Benefits:

Market Development Funds for Channel Partners (483)

Purpose The Partner Management capabilities of SAP CRM enable companies to

manage channel partner relationships throughout the partner lifecycle. 

Benefits Know who your partners are Know what your partner sells, where they sell, and to whom they sell

Key process flows covered Channel Partner Registration Channel Partner Qualification Partner Analysis in Partner Channel Management

Purpose and Benefits:

Channel Partner Relationship management (484)

Purpose This business scenario enables brand owners to more fully engage channel

partners in marketing campaigns. For example, the brand owner can inform channel partners about campaigns targeted at resale customers, so that the channel partners are prepared for the corresponding customer interest, and can plan accordingly.

Benefits Share relevant campaign information and customer target groups with your

channel partners Leverage your partners’ intimate customer and market knowledge to optimize

campaign success

Key process flows covered Campaign Development Segmentation Campaign Execution Campaign Analysis

Purpose and Benefits:

Campaign Management with Channel Partners (485)

Purpose This business scenario describes the process of collaborative Lead, Activity and

Opportunity Mgmt along the sales cycle

Benefits Give partners the same knowledge, tools, and expert advice as your own sales

force. Gain insight into demand across all selling channels and more accurately

forecast future business

Key process flows covered Lead Processing with Channel Partners Opportunity Processing with Channel Partners Activity Processing with Channel Partners Activity Analysis in Partner Channel Management Sales Funnel Analysis in Partner Channel Management

Purpose and Benefits:

Lead and Opportunity Management with Channel Partners (486)

Legend

Symbol Description Usage Comments

Band: Identifies a user role, such as Accounts Payable Clerk or Sales Representative. This band can also identify an organization unit or group, rather than a specific role.

The other process flow symbols in this table go into these rows. You have as many rows as required to cover all of the roles in the scenario.

Role band contains tasks common to that role.

External Events: Contains events that start or end the scenario, or influence the course of events in the scenario.

Flow line (solid): Line indicates the normal sequence of steps and direction of flow in the scenario.Flow line (dashed): Line indicates flow to infrequently-used or conditional tasks in a scenario. Line can also lead to documents involved in the process flow.

Connects two tasks in a scenario process or a non-step event

Business Activity / Event: Identifies an action that either leads into or out of the scenario, or an outside Process that happens during the scenario

Does not correspond to a task step in the document

Unit Process: Identifies a task that is covered in a step-by-step manner in the scenario

Corresponds to a task step in the document

Process Reference: If the scenario references another scenario in total, put the scenario number and name here.

Corresponds to a task step in the document

Sub-Process Reference: If the scenario references another scenario in part, put the scenario number, name, and the step numbers from that scenario here

Corresponds to a task step in the document

Process Decision: Identifies a decision / branching point, signifying a choice to be made by the end user. Lines represent different choices emerging from different parts of the diamond.

Does not usually correspond to a task step in the document; Reflects a choice to be made after step execution

Symbol Description Usage Comments

To next / From last Diagram: Leads to the next / previous page of the Diagram

Flow chart continues on the next / previous page

Hardcopy / Document: Identifies a printed document, report, or form

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Financial Actuals: Indicates a financial posting document

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Budget Planning: Indicates a budget planning document

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Manual Process: Covers a task that is manually done

Does not generally correspond to a task step in a document; instead, it is used to reflect a task that is manually performed, such as unloading a truck in the warehouse, which affects the process flow.

Existing Version / Data: This block covers data that feeds in from an external process

Does not generally correspond to a task step in a document; instead, this shape reflects data coming from an external source; this step does not have any incoming flow lines

System Pass / Fail Decision: This block covers an automatic decision made by the software

Does not generally correspond to a task step in the document; instead it is used to reflect an automatic decision by the system that is made after a step has been executed.

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