ADVANCE ASIA PRELIMS

HANDOUT 1 AND 2

SAP (System Applications and Products) SE

is the market leader for enterprise application software. It is a German multinational company that pioneered software. It lets companies streamline processes, use live data, predict customer trends, and connect entire businesses.

SAP

was founded in 1972 for the development of real-time data application software.

SAP ERP

is the standard ERP solution for companies worldwide. It enables a company to support and optimize its business processes and allows the collection of logically related transactions within identifiable business functions.

SAP S/4HANA

It is the next-generation Business Suite and the biggest innovation since SAP R/3. It is the digital core of the company that enables digital transformation.

SAP Fiori

It is a design system and a user experience (UX) layer that allows business app creation with a consumer-grade user experience. It makes casual users into SAP experts with simple screens that run on any device.

Transactional apps

are used to access tasks like Create, Change, or Display Process with guided navigation

Analytical apps

that give a visual overview of business data and a factsheet

factsheet

with a view of the essential information about objects and contextual navigation between related objects.

Data Types

These are data types that can be used and found in SAP S/4HANA.

Organizational Data

part of the organizational unit, such as the company code, plant, storage location, and distribution channel.

Master Data

represents logically grouped data like customer master, material master, vendor master, and general ledger accounts.

Transaction Data

the system record of the business event wherein, depending on the business event, different master data and organization data will be referenced.

Document

The business transaction record is_____ a which includes predefined information from the master data and organization entities.

Peter

is responsible for Idea-toMarket and Build-to-Stock

John

is responsible for Order-to-Cash and Service & Support, as well as the supporting services for all four (4) key processes.

Product Strategy

One of the company’s product strategies includes having an extensive innovation network to source ideas from riders, dealers, and professionals to improve its bicycles' performance, reliability, and quality.

Manufacturing Strategy

Global Bike outsources the production of off-road and touring frames and carbon composite wheels to trusted partners with specialty facilities to create the complex materials used. They maintain collaborative research and design relationships with these facilities to ensure that innovations in both material and structural capabilities are included in the frames.

Distribution and Partner Network

Global Bike sells its bikes exclusively through reputable and respected Independent Bicycle Dealers (IBDs). These dealers have staff members with expertise in offroad and tour racing to help consumers pick the right Global Bike bike and accessories for their individual needs.

IT Strategy

All ERP functions are centralized to reduce costs and deliver global best-in-class technology to all divisions. This approach gives Global Bike an advanced business platform under a highly controlled environment, enabling consistency of operations and process integrity across the globe.

Sales and Distribution (SD)

It allows organizations to store and manage customer- and product-related data. The functionalities include sales support, sales, shipping and transportation, billing, credit management, and foreign trade.

Client

an independent environment in the system.

Company Code

the smallest organizational unit where a legal set of books can be maintained.

Credit Control Area

grants and monitors a credit limit for customers.

Sales Organization

responsible for the sale of specific products or services. It is also responsible for legal liability for products and customer claims.

Plant

or Delivering Plant, a plant from which the goods should be delivered to the customer.

Customer Master

contains all the necessary information for processing orders, deliveries, invoices, and customer payments.

Material Master

contains all the information a company needs to manage a material.

Condition Master

includes prices, surcharges (additional charge), discounts, freights (goods transferred from place to place), and taxes.

Materials Management (MM)

It is concerned with helping organizations with material and inventory management and warehouse management in the supply chain process. It also deals with all tasks in the supply chain, such as consumptionbased planning, vendor evaluation, and invoice verification.

Purchasing Organization

responsible for services and material procurement and in charge of negotiating the conditions of the purchase with the vendors.

Purchasing Group

a key unit representing the buyer or group of buyers responsible for certain purchasing activities. This unit also serves as the communication channel for vendors.

Vendor Master

contains all the necessary information for business activities with an external supplier. It is used and maintained by the Purchasing and Accounting Departments.

Purchasing Information Record

allows buyers to quickly determine which vendors have offered or supplied specific materials.

Production Planning and Execution (PP)

aligns demand with manufacturing capacity in creating production and procurement schedules for the finished products and component materials.

Work Center Locations

define where and when the operation is performed. These can be machines, people, production lines, or groups of tradespeople.

Bill of Materials (BOM)

lists the components of a product or assembly.

Routing

the series of sequential steps/operations that must be carried out to produce a product.

Work Center

the location within a plant where value-added work (operations or activities) is performed.

Product Group

the aggregate planning that groups materials or other product groups (Product Families).

Financial Accounting (FI)

It is designed to collect transactional data for preparing the standard portfolio of reports. These reports are primarily, but not exclusively, directed at external parties.

Chart of Accounts

a classification scheme consisting of a group of general ledger (G/L) accounts used by one or more company codes.

Business Area

represents a separate area of operations or responsibilities within an organization and to which value changes recorded in Financial Accounting can be allocated.

General Ledger (G/L) Accounts

the data storage area created by the unique combination of Company Code and Chart of Account.

Balance Sheet

the summary of an organization’s assets, liabilities, and equity at a point in time.

Income Statement

shows an organization’s revenues and expenses at a point in time.

Statement of Cashflows

considered the associated changesin cash, which can be viewed as the most important of all assets.

Controlling (CO)

It is designed to collect transactional data for preparing internal reports to support decision-making within the enterprise. It provides methods for slicing and dicing data to view costs from an internal management perspective and gives a view of profitability beyond basic financial reporting.

Operating Concern

represents a part of an organization for which the sales market is structured uniformly.

Profit Center

responsible for revenue generation and cost containment. It is evaluated on profit or return on investment.

Cost Center

responsible for cost containment but not for revenue generation. One or more valueadded activities are performed within each cost center.

Internal Order

a temporary cost collector responsible for cost containment but not for revenue generation. It is used to plan, collect, and monitor the costs associated with a distinct short-term event, activity, or project.

Distribution

a method for periodically allocating primary cost elements. The primary cost elements maintain their identities in sending and receiving objects.

Assessment

method for allocating both primary and secondary cost elements. The primary and cost elements are grouped and transferred to receiver cost centers using a secondary cost element.