Enterprise Systems Integration Spring 2012 Enterprise Operations Planning

Enterprise Systems Integration Spring, 2012

Enterprise Operations Planning OP Execution High-Level OP Planning Procurement Process CO/PA Detailed OP Planning Forecasting Sales and Operations Demand Planning Management MPS Sales Information MRP Manufacturing System Execution Warehouse Strategy Planning Management Sales - Vision Process - Goals & Objectives Execution - Strategy - Product Portfolio and Roadmap January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 2

Enterprise Planning Process Business Process platform

Factors which impacts Business Planning

Business Planning Process

Linking the Component Plans rate of turnover Revenue Plan price trend Financial Plan Investment Plan work shedule Production Plan interest amortization Sales Plan bill explosion Planned Profit Capacity Plan Personnel Plan Procurement Plan machine hourly rate Cost Projection personnel costs of supply Overhead Costs Source: Gluchowski, Gabriel, Dittmar

Intra-Enterprise Systems Integration Corporate Planning Analysis and Controlling Accounting Purchasing Prod. Sales Disposition and Planning Employee Salary Customer Invoices Lower Management Warehouse Accounting Supplier Management, Production Planning, Cost Planning, … Middle Management Supplier Accounting Vertical Integration Top Management Strategic Enterprise Management Personnel Horizontal Integration Source: Mertens, P. , Meier, M. : Integrierte Informationsverarbeitung (2009), 1. Administration I: Value-Oriented Processing Administration II: Amount-Oriented Processing

Enterprise Strategy Pyramid

Developing Operations Strategy Assessment of Global Business Conditions Mission & Vision Business Strategy Product/Service Plans Competitive Priorities Operations Strategy Distinctive Competencies or Weaknesses

Competitive Priorities Response time Quality Cost

Enterprise Systems Integration SAP Implementation Spring, 2012

SAP Module View Financial Accounting Sales & Distribution Materials Mgmt. R/3 Production Planning Quality Mgmt. Controlling Plant Maintenance Human Resources Fixed Assets Mgmt. Integrated Solution Client / Server Open Systems Project System Workflow Industry Solutions

Chart of Accounts United States Chart of Accounts Company Code 010 Company Code 038 Canadian Chart of Accounts Company Code© 110 Code 117 SAP AG - University Alliances January 2008 and The Rushmore Group, LLC 2008. All rights reserved. 13

Organizational Structure for Financial Accounting Client Chart of Accounts Fiscal Year Variant Company Credit Control Area Company Code January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 14

General Ledger Company Code Data (continued) General Ledger Reconciliation Accounts A/R, A/P, GR/IR Debit Credit $$ $$ A/P Debit Credit $$ $$ GR/IR Debit Credit $$ $$ Subsidiary Ledger Accounts A/R, A/P, GR/IR January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 15

Integration Procurement Process (Procure-to-Pay) Purchase Requisition Purchase Order Notify Vendor Payment to Vendor Invoice Receipt January 2008 Vendor Shipment Goods Receipt © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 16

Integration Sales Order Process (Order-to-Cash) Check Availability Sales Order Entry Pick Materials Receipt of Customer Payment Invoice Customer Pack Materials Post Goods Issue © SAP AG - University Alliances January 2008 and The Rushmore Group, LLC 2008. All rights reserved. 17

Production Process (Make-to-Stock) Production Proposal (Planning/Other) Capacity Planning Schedule and Release Shop Floor Documents Order Settlement Goods Issue Goods Receipt Completion Confirmation © SAP AG - University Alliances January 2008 and The Rushmore Group, LLC 2007. All rights reserved. 18

Organizational Structures -cost center standard hierarchy Credit Control Area (Cxxx) Client (765) Fiscal Year Variant (2011) Chart of Accounts (Cxxx) Company Code (Cxxx) Controlling Area (Cxxx) Plant (Pxxx) Cost Center Standard Hierarchy (PENINCxxx) Purchasing Organization (Pxxx) SL 10 SL 20 Purchasing Group (xxx) Shipping Point (Sxxx) ADMINxxx A 005 A 010 A 015 A 020

Asset Accounting Components Asset accounting Tangible assets Intangible assets - Fixed assets - Leased assets - Assets under construction - Intellectual property - Patents -Trademarks Financial assets - Securities - Long term notes (debts) - Mortgages

Asset Management (Lifecycle) Cost center Asset master creation (AA) Vendor master Vendor invoice Outgoing payment Asset Acquisition (AA) Asset Report (AA) Plant/location External Asset Addition (AA) Depreciation Charge Asset Transfer (AA) Asset Retirement (AA) Within/outside Company code Business Area Customer Master Customer/Scraping Customer Invoice Customer Payment

Comparative Reporting Liquidity Calculation Financial Accounting (FI) Balance Sheet External Reporting Managerial Accounting (CO) Product Costs Reports Internal Reporting January 2008 Retained Earnings Report Income Statement Cost Center Reports Profit Margin © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 22

Financial Reports Internal Reporting Types External Reporting ES Database External Interfaces Integrated Information ES Reporting Features 23

Balance Sheet January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 24

Income Statement January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 25

Financial Ratios Financial ratios are the tools used to analyze financial condition and performance. Financial ratios can be divided into five basic types: Liquidity, leverage (debt), coverage, activity, and profitability. No one ratio is itself sufficient for realistic assessment of the financial condition and performance of a firm. With a group of ratio, reasonable judgments can be made. Comparing one company with similar companies and industry standards over time is crucial. Such a comparison uncovers leading clues in evaluating changes and trends in the firm’s financial condition and profitability. This comparison may be historical, but it may also include an analysis of the future based on projected financial statements. 26

HCM Process in the Employee Lifecycle

Organizational Structure

HCM: Process/Functions Hire Employee Recruitment Training and Development Cost Planning Reporting ESS Employee Self-Service Payroll Administration Manage Work Time (CATS) Compensation & Benefits

Business Process Integration Master Data Rules Org Data HCM HCM January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 30

Corporate Performance Management „One cannot manage what cannot be measured!“ Vision Events Strategie s Business Processes Goals/ Result s Compare Act Decide Measure

Balanced Scorecard Approach

Dashboard definition “A dashboard is a visual display of the most important information needed to achieve one or more objectives; consolidated and arranged on a single screen so the information can be monitored at a glance” (Few, 2004)

Name is changed to Please check The New Intelligence Platform of SAP sdn. sap. com for Crystal latest version Dashboard Design • SAP Crystal Dashboard Design (formerly Xcelsius) is the flagship product for dashboarding and visualization • Rapid development of dashboards by drag and drop • Replacing SAP Bex Web Application Designer • Connectivity through Source: (SAP AG 2009) XML and webservice connectors

SAP Crystal Dashboard Design (Xcelsius) Extremely attractive Highly interactive Feather Highly light scalable Easy to build and maintain Source: K. Jason, M. Ty (2008). Which BI Client To Use. Retrieved 02/15/2009 from http: //www. sdn. sap. com