03_SD_10-01-26_Overview of SAP fundamentals, S/4HANA, and the Sales & Distribution process.


Topic Covered -

  1. SAP Implementation Training Overview
  2. SAP ERP System Architecture Overview
  3. SAP System Architecture Overview
  4. SAP Solutions and Performance Advantages
  5. SAP HANA and S4 Overview
  6. SAP ECC to S4 HANA Transition
  7. SAP Third-Party Integration Overview
  8. SAP Sales and Distribution Overview
  9. SAP Landscape and Testing Overview
  10. SAP TR Types and Usage
  11. Custom Tables and Testing Process



Summary

SAP Implementation Training Overview

Rohan introduced himself as an experienced SAP professional with a background in implementing and supporting various SAP versions globally. He led a session for a diverse group of participants, including individuals new to SAP and others with prior experience in related fields. The attendees shared their backgrounds and reasons for joining the course, with some aiming to deepen their knowledge of SAP SD and others seeking to upskill in related modules. Rohan emphasized the importance of practice and interaction, encouraging participants to engage actively with the material and apply it during the week to enhance learning. He also mentioned that he would cover the basics of SAP implementation projects and address specific questions, such as issues with locked tables, in future sessions.

SAP ERP System Architecture Overview

Rohan led a discussion on Enterprise Resource Planning (ERP) systems, explaining that ERP software integrates a company's business activities into a single platform. He clarified that SAP is a leading ERP system that provides end-to-end visibility, unlike some competitors like Oracle which offer separate modules. Rohan described SAP's three-tier architecture, which includes a Graphical User Interface (GUI) as the front end, and explained that SAP's traditional R3 architecture has evolved over time.

SAP System Architecture Overview

Rohan explained the architecture of SAP systems, highlighting that the user interface communicates with an application server, which in turn interacts with the database, allowing for database independence until ECC 6.0. He emphasized SAP's unique end-to-end integration across business areas, its ability to retrieve deleted records, and its industry-specific solutions, which differentiate it from other ERP packages. Rohan concluded that the training would focus on core SAP, excluding industry-specific solutions, as these require a deeper understanding of core SAP functionality.

SAP Solutions and Performance Advantages

Rohan explained the differences between core SAP and industry-specific SAP solutions, noting that while industry-specific solutions like SAP Oil and Gas are less common, core SAP systems can handle concepts like Engineer-to-Order (ETO) and Make-to-Order (MTO). He also described how SAP introduced its own HANA database in 2016, which is claimed to be 300 times faster than traditional databases, addressing performance issues for large companies with extensive data volumes.

SAP HANA and S4 Overview

Rohan explained the benefits of SAP HANA, highlighting its in-memory computing capabilities that significantly enhance system performance, making it 300 times faster than traditional databases. He discussed how this technology addresses the challenges faced by companies with extensive data processing needs, such as auto ancillary firms generating large volumes of delivery documents daily. Rohan also touched on SAP S4's architecture, noting that while it retains the application server, it now exclusively supports the HANA database, and clarified that S4 stands for "Simple" and indicates the fourth generation of SAP systems. Swati inquired about the differences between R3 and S4, to which Rohan responded that S4 introduces several new concepts and functionalities.

SAP ECC to S4 HANA Transition

Rohan explained the differences between SAP ECC and S4 HANA, noting that 97% of ECC functionality remains unchanged in S4, with only minor additions and a few obsolete transactions. He detailed new features like Advanced Available to Promise (AATP) and Advanced Returns Management (ARM), as well as changes in pricing procedures and database table structures. Rohan also clarified that functional consultants can start with S4 HANA without needing prior ECC knowledge, as most ECC concepts are preserved in S4. Additionally, he explained the distinction between technical and functional consultants, emphasizing that technical consultants handle coding and implementation, while functional consultants focus on business processes and requirements. Rohan also discussed the importance of middleware in integrating SAP with third-party applications, highlighting security concerns as the reason for SAP's policy against direct integration with non-SAP systems.

SAP Third-Party Integration Overview

The meeting focused on explaining the integration of third-party systems with SAP, particularly highlighting the roles of functional and technical consultants. Rohan explained that while functional consultants interact with businesses to understand requirements and configure SAP, technical consultants handle coding and middleware, with both working together on integrations. The discussion also covered the Activate methodology, with Rohan noting that a separate session would cover its activities in detail. The conversation ended with an overview of the Sales and Distribution (SD) module in SAP, emphasizing its role in logistics and its tight integration with other SAP modules, particularly finance.

SAP Sales and Distribution Overview

Rohan provided an overview of the Sales and Distribution (SD) module in SAP, explaining its core functionalities, components, and the Order to Cash (OTC) flow process. He outlined the steps in the OTC cycle, including inquiry, quotation, sales order, delivery document, and invoice creation, emphasizing that while inquiry and quotation are optional, sales orders are the most common starting point. Rohan also mentioned that SAP is moving away from using traditional module names like SD and FI, instead adopting acronyms like OTC, SP2P, and R2R.

SAP Landscape and Testing Overview

Rohan explained the SAP landscape, including development, quality, and production clients, and described the testing phases: functional unit testing (FUT) and integration testing (FIT) done by functional consultants, and user acceptance testing (UAT) done by business users. He clarified that services in SAP do not require delivery and PGI, only sales orders and invoices. Rohan also explained the process of moving changes between clients using transport requests and the transaction code SCC1N.

SAP TR Types and Usage

Rohan explained the difference between configuration TRs and workbench TRs, noting that 90% of functional consultants' changes are captured in configuration TRs, while 10% are in workbench TRs. He clarified that configuration TRs are used for changes to system functionality and tables, while workbench TRs are used for creating, assigning, and activating tables, as well as for code changes. Alina asked for clarification on when to use each type of TR, and Rohan explained that data maintenance is different from configuration and does not require a TR. He also mentioned that SAP has over 100,000 standard tables, and every concept in SAP is associated with a particular table.

Custom Tables and Testing Process

Rohan explained the concept of custom tables and their creation process, emphasizing that functional consultants do not directly create tables but provide specifications to technical consultants. He clarified the differences between Workbench TRs and configuration TRs, stating that functional consultants rarely work with Workbench TRs. Rohan also discussed the development, quality, staging, and production clients, explaining the testing process and the importance of obtaining written business approval before making any changes in the production environment. He concluded by announcing that the order-to-cash flow discussion would continue in the next session, with a focus on creating an order delivery invoice and enterprise organization structure.

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