INTRODUCTION

1) WHAT IS ERP ?

● SAP itself is a "ERP", ERP stands for "E-ENTERPRISE","R-RESOURCES" & "P-

PLANNING".

● Where as Enterprise is any company using Resources by planning to

improve or develop, where as Resource are like People, Machines, Money,
Land, Building, Materials, Energy, etc which are used to run that company
with proper Planning is called ERP.

● ERP is a software which is used to integrate all services which are required
to run the company.

● Any company uses Resources by Planning to improve or develop is called

ERP.

● ERP software are responsible to monitor growth of organization and also

used to manage the resources in an organisation.

● An ERP softwares are Web (server) based so that we can connect to any
interface easily and can be accessed from anywhere.

❖ There are many packages in ERP

1) SAP
2) ORacle
3) Peoplesoft
4) Baan
5) JD edward and many more

❖ There are certain advantages of ERP Packages which

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 1) Leads to increase in Productivity
2) Reduces cost of production
3) Leads in Performance Increase
4) Leads to Customer Satisfaction
5) Quick Return on investment

2) WHAT IS SAP / SAP AG ?

● SAP itself is a ERP software and it stands for "SYSTEM APPLICATIONS AND
PRODUCTS IN DATA PROCESSING".

● SAP AG is an organization or company founded by 5 former IBM members

in 1972 and headquartered in Walldorf in Germany. In SAP AG ,"AGAY" is a
german word which is similar to Limited in India in English and
Incorporation or Corporation in other countries like USA , UK , etc.

❖ Founders of SAP are

1) Dietmar Hopp
2) Hans Werner Hector
3) Claus Wellenreuther
4) Klaus Tschira
5) Hasso Plattner

● 10 out of top 10 US companies with a highest Market value uses SAP

software.

● 8 out of top 10 Largest US corporations uses SAP software.

● 8 out of top 10 highest profit US companies uses SAP software.

● More than 1 lac customers in 120 countries have chosen SAP.

3) WHAT IS THE DIFFERENCE BETWEEN ECC & S/4 HANA systems IN SAP ?

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● ECC S4 HANA
1) Vendor master – xk01 1) BP
2) Material length - 18 2) Material length - 40
3) 3) 24-25 tables has been merged into 1 Table
4) 4) There are different table for Material and
Acc doc MATDOC , ACDOCA
5) MB t.codes working 5) MB T.codes are obsolete – MIGO

ECC – ERP CENTRAL COMPONENT

S4 HANA – S4 INDICATES THE SAP BUSINESS SUITE 4 & HANA – High
Performance Analytic Appliance

4) WHAT IS SAP CONSULTANT AND TYPES OF CONSULTANT ?

● An SAP consultant is an expert in providing various software solutions

created for the business needs.

● There are 2 types of SAP consultant based on knowledge

1) Functional Consultant
An SAP Function consultant is responsible to understand business
requirements and then transform them into a 'Business Process' in SAP.

2) Technical Consultant
Technical SAP consultants are generally either programmers or systems
administrators.

5) WHAT IS SAP MM CONSULTANT ?

● SAP MM stands for Material Management & it is one of the FUNCTIONAL

module of SAP and it deals with Material Management & Inventory
Management.
● A business process in SAP is termed as “Module” or “Line of Business”.

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 ● SAP MM is a part of logistics functions & it helps in managing the
procurement activities of an organisation.
● It supports all aspects of Material management (Planning, Control, etc).
● It is the backbone of logistics that incorporates module such as SD, PP, PM,
WM & EWM.

❖ Features of SAP MM

● MM is a process which ensures no shortage of materials or any gaps in the

supply chain process of the organisation. Sap MM speeds up the
procurement & material management activities making the business run
more smoothly with complete time and cost efficiency.

● It deals with the Procurement Process, Master Data, Account

Determination, valuation of Material, Inventory Management, Invoice
Verification, Materials Requirement Planning ,etc.

❖ In SAP you need to do configuration and its testing.

❖ By 2025 SAP will stop supporting ECC version & so they need to upgrade to the
S/4 Hana.

❖ SAP consultants provides

Solutions-->Design-->Configuration-->Development-->Enhancement

❖ ABAPr persons are also called as Consultant / Developers / Tech.consultant

❖ Toughest modules of SAP are

1) FICO
2) MM

❖ As a SAP consultant in any Company we will get to work on 4 projects

1) Support

● Support Project (Consultant)—In house Consultant

● Already Implemented SAP, Support them.🡪 Remedy tool for Tickets.

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 2) Implementation

● SAP MM Junior Consultant (Implementation Project)

● Where SAP is Not Implemented.
● Gather requirement of Client, Understand there Business.
● Do Workshop, Gap analysis, Prepare Blue print, configuration, Testing

3) Migration

● Migration Project : SAP ECC  S4 HANA.

4) Roll out
● Roll Out Project : One Company Code  Another Company code.
● Copy the Configuration from same System.

❖ Types of users in SAP

1) End User (Employee in Company)

2) Super User / In house Consultant
3) SAP Consultant (Sitting in IT Dept of Company)
 Super user are executives of company normally at Managers and above,
Core team members who know the business very well.

❖ SAP Landscape R/3 Architecture

1) Development System/Golden client

2) Quality System (Testing)
3) Production System (Go Live System)

6) What are the levels of Certification does SAP provides ?

● SAP provides 3 levels of certification - ASP

1) Associate level
● Covers fundamental knowledge requirements of broad SAP solution
knowledge and skills.

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2) Specialist certification
● Offered in addition to an associate certification, this certification level
focuses on a specific role or integration component.

3) Professional certification
● Advanced certification, requiring proven project experience, business
process knowledge, and a more detailed understanding of SAP solutions.

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 EXTERNAL SERVICE PROCUREMENT

1) What is External Service Procurement ?

 The Process of buying the Service required by the internal department of
client from the external vendors.

 Service Procurement takes place when the company hires the vendor for
the external services.

2) What is Service Entry Sheet ?

 Service Entry Sheet is made when you want to procure any service.

 Service Entry Sheet is nothing but the GR document. Instead of the

material we maintain the services which has been performed and for
which we need to pay to the vendor in MIRO.

3) What is the Service Master Record / Service ?

 Services are meant for direct consumption instead of keeping them in
inventory.

 Service description along with its unit of measure, GL a/c, Service

Category, Service Group is stored as master data in a record that is known
as the Service Master Record.

 The system stores the services that have been procured as a record in a
sheet that is called as the Service Entry Sheet.

4) What are the types of SERVICES ?

 There are 2 types of Services we generally maintain in the Service Entry

Sheet :

1) Planned Service
 The planned service are those whose Quantity and price are known in
advance. It means nature and scope of service is clear before
procurement.

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 2) Unplanned Service
 The Unplanned service are those whose Quantity and price are not
known in advance. It means nature and scope of service is not clear
before procurement.
5) How we can recognise the Service PO & STD PO ?
 We can recognise the service PO from
1) Account Assignment Category – k (Cost Centers)
2) Item Category – D (Services)

6) What are the Fields required to maintain the Service Master Record ?
 There are certain fields required for the Service Master Record
1) Service Description
2) Service Category
3) Unit of Measure
4) Service Material Group
5) Valuation Class ( For Automatic Account Determination Same as
Material master)
6) Short and Long Text.

7) What is the Business Process to create the Service PO ?

 These are the Process below :
1) Vendor Master (Prerequisite)
2) Service master Record (optional) (AC01)
3) PR (optional)
4) RFQ (optional)
5) PO { Acc Ass Cat  K (cost center) }
{ Item Cat  D (Services) }
{ Limits – We can also set limit for the extra services other than PO
net value }
6) SES (Should be Approved by Manager before payment to
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 Vendor)(ML81N)
7) MIRO w.r.t SES

8) What are the data required to create Service Entry Sheet ?

 First of all Service Entry Sheet is created w.r.t PO after we have received
the services from the external vendor.
 There are certain data which need to be maintained while creating SES :
1) Short and Long Text
2) Basic Data
3) Services  1) Planned and 2) Unplanned
4) Set final Entry in SES - if we don’t want any further services
5) SES approval from the Manager - before payment

9) What are the Accounting Entries at the time of External Service PO ?

 The Accounting Entries at the time of
1) SES 2) IR
Consumption A/c – Debited (KBS) GR/IR clearing A/c – Debited (WRX)
GR/IR clearing A/c – Credited (WRX) Vendor A/c – Credited (KBS)

10) How to create the service PO for Planned and Unplanned Services ?

Enter the a/c assign category and item category and give short text for service
and enter quantity.

We can enter the services in the service tab at item level, services can be
procured with and without service master record both the example are shown
below :

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In order to procure Unplanned services go to Limit tab in item level and enter
the limits for unplanned services.

Now Create SES just go to t.code ML81N and enter the PO number

Then enter the short text of service which you have received

Then go to bottom of screen and select the services

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We can select the service for a particular line item or all items in PO.

Then select the line item and click on adopt + Services

Thus the services will be selected as shown below and save it :

After saving SES as we can see it has not got any acceptance

Now click on the change icon and then click on GREEN FLAG icon to release the
SES

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It will be accepted after releasing and then just save it.

As you can see it is accepted after saving it.

Now do the payment in MIRO w.r.t SES

Enter all the required details

Enter the tax code in account assignment category option

That’s it just make the payment to vendor.

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 STOCK TRANSFER ORDER

1) What is the STO and it types ?

 Stock Transport Order (STO) that enables to move stock from one plant to
another or between different storage locations of the same plants.
 STO involves Physical movement of Goods.
 Stock transfer order can be done between
1) Plant to Plant ( 1 Step & 2 Step Method )
2) SL to SL ( 1 Step & 2 Step Method )

2) What is Transfer Posting and its types ?

 Transfer Posting usually involves change in material’s stock type.
 It may or may not involve the physical movement of Goods.
 There are 3 types of Transfer Posting :
1) Material to Material
2) One stock type to another stock type
3) Consignment to Own Stock

3) What is the difference between STO and Transfer posting ?

STO TRANSFER POSTING

1) In case of stock transfer physical 1) In transfer posting the physical
movement of goods is involved,they movement of goods may or may not
usually involve the movement of goods involve, they usually involve a change in
plant to plant & SL to SL. stock type, batch type & material
number.
2) This can be used by using 1 step, 2step
and STO Process. 2) NO STO is possible.

4) What is Movement types ?

 Movement type is a three-character key which differentiates various
material movements. e.g. Goods Receipt, Goods Issue and Transfer
Posting. Movement types has controlling functionality in SAP. They play
the main role in account determination as well.

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  Movement Types describes the type of stock posting in inventory. It
represents whether the posting in stock is against Goods Receipt, Goods
Issue and Transfer Posting.

5) What are the movement types required for Stock type to Stock type
transfer?

6) What are the movement types required for Material to Material transfer ?

7) What are the movement types required for SL to SL transfer ?

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1) 1 Step Process

2) 2 Step Process

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8) What are the movement types required for the Plant to Plant ?

 Possible Procedure in Plant to Plant to transfer :

1) 1 Step Process
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 2) 2 Step Process
3) STO Process (With / Without Delivery)

9) What is Stock Transfer Order Process and it types ?

 Stock Transfer Order Process
 STO is not only involve in Inventory Management but also Purchasing at
the Receiving plant.
 Receiving Plant will create the STO in Purchasing Dept and share with
the issuing plant
 Based on the STO, Issuing Plant will issue the goods.
 so that Stock comes in Transit (check in t-code :- MBST)
 then Receiving Plant will do Goods Receipt w.r.t STO.

Business Process:-

1) PO – Receiving Plant will send STO PO to Supplying Plant

2) Gi – Supplying Plant will issue the goods w.r.t STO PO
3) GR – Receiving Plant will receive the goods w.r.t STO PO
10) What are the effects of Goods Receipt ?

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11) What are the Accounting Entries in the STO process ?
 MIGO
Stock Account (BSX) (SP) – Debited
Stock Account (BSX) (RP) – Credited

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