SAP- MM

Table of Contents
1. ERP – Enterprise Resource Planing ........................................................................................ 3
2. History Of SAP ............................................................................................................................ 4
3. What is SAP R/3? ........................................................................................................................ 7
4. SAP System Landscape ........................................................................................................... 10
5. Types of Projects in SAP ......................................................................................................... 13
6. Implementation Methodology: ............................................................................................ 15
7. WRICEF ....................................................................................................................................... 19
8. SAP – Materials Management ............................................................................................... 21

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 1. ERP – Enterprise Resource Planing
Enterprise Resource Planning (ERP) is a type of software that organizations use to manage and
integrate the important parts of their businesses. An ERP software system can integrate planning,
purchasing inventory, sales, marketing, finance, human resources, and more

Enterprise Resource Planing

Types of ERP Software

1. On-Premise ERP Systems: These are installed locally on a company's own servers and
hardware. The company has full control over the system and its data
2. Cloud-Based ERP Systems: These are hosted on the vendor's servers and accessed through
a web browser. They offer flexibility, scalability, and lower upfront costs
3. Hybrid ERP Systems: These combine on-premise and cloud-based solutions, allowing
businesses to leverage the benefits of both
4. Multicloud ERP Systems: These use multiple cloud services to meet different business
needs, providing greater flexibility and redundancy
5. Industry-Specific ERP Systems: Tailored to meet the unique needs of specific industries,
such as manufacturing, healthcare, or retail
6. Open-Source ERP: These are ERP systems with source code that is freely available for
anyone to use, modify, and distribute. They offer customization and cost benefits

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2. History Of SAP
Overview of our history

The Early Years

On April 1, 1972, five former IBM employees - Dietmar Hopp, Hasso Plattner, Claus
Wellenreuther, Klaus Tschira, and Hans-Werner Hector - started the company SystemAnalyse
Programmentwicklung (System Analysis Program Development). Their idea was to create
standard enterprise software that integrated all business processes and enabled data
processing in real time.

SAP's founders and employees worked closely with customers - often sitting side-by-side with
employees in customers' offices to learn their business needs and processes. By 1975. they
had built applications for financial accounting (RF). invoice verification. and inventory
management (RM). Some of their early customers were the nylon factory belonging to ICI in
Ostringen, Germany, Knoll. Burda. Linde. and Schott. The blend of real-time data processing,
standardization. and integration were the basis for SAP's transformation from a small German
company into a global leader in business software. In 1979, the company started developing
R/2, the second generation of its software. In 1980, SAP's roughly 80 employees moved into
their first own office building in Waldorf, Germany.
From R/3 to Global Player
Even while R/2 was enjoying huge sales success and one year before SAP went public with an
IPO in 1988 – the company’s managers were looking ahead to its third generation of software.
The SAP R/3 success story began in 1992, with the client-server software smoothing the path
to a globalized economy, turning SAP into a global player with subsidiaries and development
centers across the world.

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In 1999, SAP responded to the Internet and new economy by launching its mysap.com
strategy. Ten years later, the company branched out into three markets of the future: mobile
technology, database technology, and cloud. To rapidly become a key player in these new
domains, SAP acquired some of its competitors, including Business Objects, Sybase, Ariba,
SuccessFactors, Fieldglass, and Concur.
Into the Cloud with SAP HANA
In 2011, the first customers started using the in-memory database SAP HANA. Data analyses
that used to take days or even weeks were now completed in seconds. Four years later, SAP
launched SAP S/4HANA, its latest generation of business software, running entirely on SAP
HANA. SAP is committed to enabling every enterprise to become intelligent, networked, and
sustainable – bringing together the solutions, technology, and best practices needed to run
integrated, digital business processes in the cloud.

SAP offers choice across the four largest hyperscale cloud vendors. The company’s integrated
applications connect all parts of a business into an intelligent suite on a digital platform. SAP
Business Technology Platform brings together application development, data and analytics,
integration, and AI into one platform. It is a central element of SAP’s “RISE with SAP” offering.

SAP has approximately 269 million cloud users currently, more than 100 solutions covering all
business functions, and the largest cloud portfolio of any provider. SAP operates 57 data
centers at 32 locations in 15 countries.

SAP Products
Major units

 SAP S/4HANA (Enterprise resource planning on-premise and cloud)

 SAP Business ByDesign (SME Cloud Enterprise Resource Planning)
 SAP Business One (B1 on HANA) (Small enterprise Enterprise Resource Planning)
 SAP CRM (Customer Relationship Management) (legacy product)
 SAP ERP (Enterprise resource planning) (legacy product, see S/4HANA)
 SAP PLM (Product Lifecycle Management) (legacy product)
 SAP SCM (Supply Chain Management) (legacy product)
 SAP SRM (Supplier Relationship Management) (legacy product)

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SAP Modules list

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3. What is SAP R/3?

SAP R/3 is a 3 tier architecture consisting of 3 layers

 Presentation
 Application
 Database

In simple words, it’s a client server architecture.

R signifies Real-time system

3 represents – 3-tier architecture.

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User’s PC: Users can access SAP system in two ways:-

1. Through SAP GUI

2. Through Web browser

It’s called front-end. Only the front-end is installed in the user’s PC not the
application/database servers.

Front-end takes the user’s requests to database server and application servers.

Application Servers: – Application server is built to process business-logic. This workload is

distributed among multiple application servers. With multiple application servers, the user can
get the output more quickly.

Application server exists at a remote a location as compared to the location of the user PC.

Database Server: –Database server stores and retrieves data as per SQL queries generated by
ABAP and Java applications.

Database and Application may exist on the same or different physical location.

Understanding different SAP layers

Presentation Layer
The Presentation Layer contains the software components that make up the SAPgui
(graphical user interface). This layer is the interface between the R/3 System and its users. The
R/3 System uses the SAPgui to provide an intuitive graphical user interface for entering and
displaying data.

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The presentation layer sends the user’s input to the application server, and receives data for
display from it. While a SAPgui component is running, it remains linked to a user’s terminal
session in the R/3 System.

Application Layer
The Application Layer consists of one or more application servers and a message server. Each
application server contains a set of services used to run the R/3 System. Theoretically, you only
need one application server to run an R/3 System. In practice, the services are distributed
across more than one application server. The message server is responsible for communication
between the application servers. It passes requests from one application server to another
within the system. It also contains information about application server groups and the current
load balancing within them. It uses this information to assign an appropriate server when a
user logs onto the system.

Database Layer
The Database Layer consists of a central database system containing all of the data in the R/3
System. The database system has two components – the database management system
(DBMS), and the database itself. SAP has manufactured its own database named Hana but is
compatible with all major databases such as Oracle. All R/3 data is stored in the database. For
example, the database contains the control and customizing data that determine how your
R/3 System runs. It also contains the program code for your applications. Applications consist
of program code, screen definitions, menus, function modules, and various other components.
These are stored in a special section of the database called the R/3 Repository, and are
accordingly called repository objects. R/3 repository, objects are used in ABAP workbench.

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4. SAP System Landscape

Landscape is like a server system or like a layout of the servers or some may even call it the
architecture of the servers viz. SAP is divided into three different landscape DEV, QAS and PRD.

- DEV would have multiple clients for ex: 190- Sandbox, 100- Golden, 180 - Unit Test.
- QAS may again have multiple clients for ex: 300- Integration Test, 700 to 710 Training.
- PRD may have something like a 200 Production.

Dev QA PRD
These names and numbers are the implementer's discreet on how they want it or they have
been using in their previous implementations or how is the client's business scenario.

Now whatever you do in the Sandbox doesn't affect the other servers or clients. Whenever you
think you are satisfied with your configuration and you think you can use it moving forward,
you RE-DO it in the golden client (remember, this is a very neat and clean client and you cannot
use it for rough usage). As you re-do everything that you had thought was important and
usable, you get a transport request pop up upon saving every time. You save it under a
transport request and give your description to it. Thus the configuration is transported to the
Unit Test client (180 in this example).

You don't run any transaction or even use the SAP Easy Access screen on the 100 (golden)
client. This is a configuration only client. Now upon a successful transport by the Basis guy,
you have all the configuration in the Testing client, just as it is in the Golden client. The
configuration remains in sync between these two clients.

But in the Testing client you cannot even access SPRO (Display IMG) screen. It's a transaction
only client where you perform the unit test. Upon a satisfactory unit test, you move the good
configuration to the next SERVER (DEV). The incorrect or unsatisfactory configuration is
corrected in Golden (may again as well be practised in the sandbox prior to Golden) and
accordingly transported back to 180 (Unit Test) until the unit test affected by that particular
config is satisfactory.

The Golden client remains the 'database' (if you wanna call it that) or you may rather call it the
'ultimate' reference client for all the good, complete and final configuration that is being used
in the implementation.

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In summary:
Landscape : is the arrangement for the servers

IDES : is purely for education purpose and is NOT INCLUDED in the landscape.

DEVELOPMENT ---> QUALITY ----> PRODUCTION

DEVELOPMENT : is where the the consultants do the customization as per the company's
requirement.
QUALITY : is where the core team members and other members test the customization.
PRODUCTION : is where the live data of the company is recorded.

A request will flow from Dev -> Qual -> Prod and not backwards.

 1. Sandbox server: In the initial stages of any implementation project, you are given a
sandbox server where you do all the configuration/customization as per the company’s
business process.
 2. Development Server: - Once the BBP gets signed off, the configuration is done is
development server and saved in workbench requests, to be transported to Production
server.
 3. Production Server: This is the last/ most refined client where the user will work after
project GO LIVE. Any changes/ new development is done is development client and
the request is transported to production.

Transports - Moving changes through the landscape

An SAP Transport Request (or Transport for short) is the vehicle used to capture change and
to move it between systems or clients. A Transport can contain customizing and/or
workbench contents and goes though the following lifecycle:

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 Transport Creation - creates an empty transport as a container
 Change Recording - store changes to customizing, or creation of/change to repository
objects
 Release Transport – locks the transport contents and enables it to be exported and
then imported to other systems/clients
 Import – process by which the changes contained within a transport are imported into
the target system

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5. Types of Projects in SAP
The different types of projects in SAP that are involved are
1. Implementation / Development Project
2. Support and Maintenance Project
3. Roll Out Project
4. Upgradation Project / Migration Project
5. Enhancement project

Implementation / Development Project

It is a pure development of the project, where we map and design client business requirements
in the SAP system for the first time by using ASAP & Activate methodology.

 The duration of the implementation project can be – 6 to 24 Months depends on

company.

Support and Maintenance Project

After successful implementation of SAP for the client, next is to provide the support and
maintenance to the client for day-to-day business transactions. The important roles and
responsibilities in the Support project are
 Issues and errors resolution
 Provide assistance to the users during the month and year-end activities
 Configuration in existing system as per requirements of a client.
We can two types of supporting projects
1. Ticket Based Support : In this project, we support to the clients companies based on the
Tickets
2. Production Support: The support team will be available by 24/7 for support in
production system.

Roll Out Project

Company is already using SAP, but they want to implement SAP for another country/plant or
legal entity based on the existing country. Roll Out project can implement
 To follow a unique method of transactions recording
 To generate consolidated financial statements within the SAP system.
The different types of Rollout projects are

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1. Country Rollout: In this Rollout project, we will copy the data from the existing company
to a new country.
2. Company Code Rollout: In this project, we will copy the data from an existing company
to a new company.

Upgradation / Migration Project

It involves upgrading from the old version to the new version of the SAP system. The
duration of upgrade project can be For Example: – Migrating from SAP ECC Systems to the
S4Hana system.
It also involves the implementation of new functionalities like
 Implementation of New G/L Accounting functionality
 Adapting Material ledgers, etc.

Enhancement Project
In this SAP Enhancement Project, we will add the additional features and modules in the
existing data. For e.g. Implementing GST (Goods and Service Tax) to the existing Tax.

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6. Implementation Methodology:

SAP Activate Methodology has 6 Phases to it:

 Discover
 Prepare
 Explore
 Realise
 Deploy
 Run

Discover Phase:
The Discover phase is where the customer realises there is a need for a solution to satisfy
their business pain point and starts looking out for the right SAP solution to map their
requirements. During this phase, customers can apply for a free trial solution if applicable
and try it out for themselves to check the features and functionalities of the solution.
Customers can even reach out to partners like iQuantM to get the best consulting advise
based on years of industry and SAP product experience to find the best solution. By the end
of this phase, customers finalize to go ahead with the required SAP solution and move to the
next phase in their implementation lifecycle.

Prepare Phase:
As the name suggests, this phase is crucial to both customers and partners as key activities
that are crucial to the success of the project are completed with mutual consent. The system
is provisioned to the customer post-signing of the contract with SAP and the partner.
Simultaneously, key resources are identified from the partner side in terms of the SAP
Consultants getting onboarded and enabled. From the customer side, business process
owners are identified to provide the right requirements to the consultants implementing the
project. A high-level project plan along with roles and responsibilities is finalised along with
the project team, project governance procedure and escalation matrix and the project is
ready to kick-off!

During this phase, an initial level of requirement is already collected when the business
process owners fill in the Business-Driven Configuration Assessment questionnaire. This is a
readily available document for the project team that can be downloaded and used to fasten

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the project delivery. Based on the answers obtained from the assessment, consultants need
to plan for the next and probably most important phase of the SAP Activate Methodology –
the Explore Phase.

Explore Phase:
The Explore Phase pretty much lays the foundation for the success of the project. In this
phase, customers and partners collaborate with each other for 1 outcome – to finalize the
business process to be followed in the new SAP system. This is done by a series of “Fit-to-
Standard Analysis” sessions, where the SAP Best Practice business process flow is showcased
to the Business Process Owner. Consultants first display a flowchart of the business process
and later drive a demo of the same using the initial system that was provisioned to them.
The project team then have a healthy discussion on how the business can map their business
to the best practices. This is the usual process when it comes to SAP S/4HANA Public Cloud,
otherwise known as SAP S/4HANA Cloud, Multi-tenant Edition. For the SAP S/4HANA
business suite and SAP S/4HANA Private Cloud otherwise known as SAP S/4HANA Cloud,
Single-tenant Edition, there is an additional “Fit-to-Gap Analysis” session where, additional
requirements of the business can be noted and later mapped to the SAP system based on
feasibility.

Another major point that SAP Activate has made easier for consultants is the standard
migration templates that are readily available to download. This comes as a point of relief,
especially for consultants who otherwise used to spend a lot of time coming up with a
migration template to help the business fill in the information that is required to be migrated
to the new system. This helps the project team save an immense amount of time and the
business finds it comfortable to fill in the required information as advised by SAP. The
business users are enabled on the migration templates and they can now internally start
working on data consolidation, cleansing, and formatting to be filled into the standard
migration templates. This comes as a huge relief to both the customer and partner project
teams as working on data is arguable one of the most difficult portions of a project!

One of the best parts of the explore phase is the “Customer Execution of Standard
Processes”. What SAP Activate tries to achieve is to build an early relationship between the
end-users and the SAP system for an easier and accelerated adoption of widely accepted
business processes. Consultants provide the business users with the documents required and
help them run an end-to-end cycle in the SAP system. The previously self-enabled business
is now familiar with the system and provides their concurrence that they have executed the
business process in the system. They are provided with their own user access to explore and
get familiarised with the system. This is great, especially in the initial stages of the project
because this helps for an easier UAT in the next phase of the project.

All of the customer’s requirements in terms of additional WRICEF objects – Workflows,

Reports, Integrations, Conversions, Enhancements and Forms along with the configuration
values are noted in the Backlog document provided by SAP which is then signed off to
signed off mutually between the partner and the customer. This backlog document consists

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of all the customer-specific requirements that need to be available in the SAP system for the
business users to perform their daily tasks. Consultants then prioritize according to
feasibility, difficulty and importance and plan the sprints for the Realize Phase where the
primary aim is to close each of the Backlog items one by one.

A change impact analysis is done to understand how the new system will benefit the
business and actions to enable a smooth transition to the new system are decided among
the stakeholders of the project. Key users are identified and an end-user learning needs
analysis is done and a learning plan is prepared for the key users who will help drive the
success of the system during the duration of the project.

Realize Phase:
Once the Explore Phase deliverables are signed off, the project team can start working on the
Quality system provisioned by SAP. In this phase, the SAP consultants start configuring the
SAP system according to the Backlog document that is signed off. This happens in an
iterative approach where the project team works based on multiple sprints that have been
planned to execute the project by breaking down the backlog requirements into smaller
deliverables that need to be showcased to the business process owner and signed off as
completed once it matches the agreed-upon completion criteria. This is the phase where
consultants are in regular touch with the business process owner to showcase to them, the
SAP system they are building through multiple Solution Walkthrough’s that are scheduled
through the Realize Phase.

The technical teamwork on completed the WRICEF objects that were noted in the Backlog
document during this phase and work hand in hand with the SAP functional consultants and
business users to ensure the custom objects are delivered with quality within the timeline.

User Roles and Authorizations can be a hectic process to finalize on, especially in large
projects. For the same, SAP has provided us with standard persona-based roles that help the
business users with their tasks through an End-to-End business process. For example, a
maintenance technician will be provided with standard roles required for a maintenance
technician in the SAP system and a maintenance manager will be provided with the standard
role enabling him to perform his tasks as per the best practice in the SAP system.

In this phase, multiple levels of testing such as Unit Testing, String Testing, Integration
Testing and User Acceptance Testing is performed to ensure the SAP system is configured
according to the customer requirements provided by the business process owners. Data
migration testing is also done to ensure the data filled in by the business users are in the
correct format and ready to import to the brand-new SAP system.

Once all the deliverables are satisfied, a cutover plan is made to move the configurations,
WRICEF objects and master and transactional data to the Production system which will be
the system used by the business in real-time. This signifies the end of the Realize Phase.

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Deploy Phase:
In the Deploy Phase, once every checkbox is ticked and everything is ready, the business
faces a temporary downtime as the new SAP system is Deployed for usage to the business
users. This is typically done during a weekend to ensure that customers have little to no
effect due to the downtime. The cutover is a process that sometimes gives consultants
sleepless nights as this is the culmination of all their hard work being moved into the SAP
system for the usage of an entire organisation.

Once the cutover is done successfully and checked by the partner and the customer, the
business users are supported by the consultants and the key users who now form the first
line of defence in case users have doubts or face an issue. The customers and partners can
now relish the success of the project through an intense time filled with dedication and hard
work from all stakeholders involved.

Run Phase:
The Run Phase signifies the end of the customer's lifecycle from identifying a solution for
their business need to finally implement the solution and running their business process on
the same. In the Run Phase, the customer project team are given only 1 task – to be updated
with the latest innovation and technologies in SAP, especially in the product they have
implemented by having a “Continuous Learning” to keep up with the pace of technology.

SAP Activate has matured to be a great methodology to be used for SAP S/4HANA
implementation and conversion projects. Everyone who has been in a project knows how
difficult it is to carry the torch from the start to the finish line. SAP Activate has really helped
project managers and consultants across the globe complete projects successfully at a much
faster rate. Despite the COVID-19 pandemic, numerous customers have successfully gone
live with SAP solutions using the SAP Activate Methodology. Kudos to jan.musil, Chief
Product Owner of SAP Activate Methodology and his team for streamlining phases, tasks and
deliverables for a successful project.

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7. WRICEF
RICEFW stands for Reports, Interfaces, Conversions, Enhancements, Forms, and Workflows.
These are the six categories of development work that are commonly carried out in SAP
projects. Let's take a closer look at each category:

Reports: Reports are used to retrieve data from the SAP system and present it in a user-
friendly format. Reports can be simple or complex, and can range from a few lines of code to
hundreds of pages. A report could be a simple list of customer names and addresses or a
complex analytical report showing financial performance.

Interfaces: Interfaces are used to transfer data between the SAP system and other
systems or external parties. Interfaces can be inbound or outbound, and can be either real-
time or batch. An example of an interface is a daily upload of sales data from a legacy system
into SAP.

Conversions: Conversions are used to convert data from one format to another.
Conversions can be used to convert data from a legacy system into SAP or to convert data
from one SAP system to another. For example, a conversion might be used to convert
product descriptions from a legacy system into SAP.

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Enhancements: Enhancements are used to add functionality to the SAP system that
is not available out of the box. Enhancements can be small or large and can range from a
simple screen modification to a complex new module. An example of an enhancement is the
addition of a custom field to a standard SAP screen.

Forms: Forms are used to create printed or electronic documents in the SAP system.
Forms can be used to create invoices, purchase orders, or shipping documents. A form could
be a simple layout of customer information or a complex form with dynamic fields and
images.

Workflows: Workflows are used to automate business processes in the SAP system.
Workflows can be used to route documents for approval, trigger events based on certain
conditions, or send notifications to users. An example of a workflow is the approval process
for purchase orders.

In summary, RICEFW is a useful acronym that represents the most common types of
development work that are carried out in SAP projects. By organizing development work into
these categories, it helps ensure that all necessary aspects of the project are addressed and
managed appropriately.

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8. SAP – Materials Management
SAP MM (Material Management) Module is a SAP ERP component that helps organizations
with material management, inventory management, and warehouse management in the
supply chain process. It is a part of SAP ECC’s logistics functions which consists of several
components and sub-components. The most prominent and widely used components are
Master Data, Purchasing, and Inventory.

Procure To Pay

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Procure to pay Process consists the following processes.
 Material requirement planning
 Vendor Selection
 Request for Quotation
 Purchase Requisition
 Purchase Order
 Goods Receipt
 Goods Receipt Invoice
 Invoice Verification
 Payment to Vendors
Material requirement planning (MRP) :-
Materials requirements planning (MRP) refers to the technique of using a projected
manufacturing production schedule to figure out what supplied materials you will need, and
when you will need them. Materials requirements planning (MRP) type controls the MRP
procedure, pricing, material valuation. Material requirement planning carried out by MRP
controller in production department.

Vendor selection :-
Vendor selection is one of the important step in procurement process. With the help of
obtained quotations from sources and by comparing them, vendors are selected

Request for Quotation :-

Requesting potential vendors to submit a quotation for a material or services. Quotation
contains the vendor’s terms and conditions and constitutes the basis for vendor selection

Purchase Requisition :-
A purchase requisition is an internal request to purchasing. You ask the buyer to provide a
certain quantity of a material or service on a certain date.A purchase requisition can be created
automatically by Material Requirement Planning (MRP) or manually created. PR converts to
RFQ, PO or outline agreement. Purchase Requisition forms include the following information
 Material Qty, description of goods & service and total value.
 Department Account number.
 Signature by an Authorized Department.
 Attached Quote from the vendor.
 Delivery instructions.
 Attach Quote from the suggested vendor.

Purchase Order :-
Purchase Order (PO) is a formal request to a vendor to supply certain materials or services
under the certain conditions. A Purchase Order (PO) can be created with reference, or
without reference to a purchase requisition, a request for quotation, or another purchase
order.
POs usually specify terms of payment, incoterms, delivery date, specifications, material qty,
price and reference or part numbers.

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Types of purchase orders in procurement process:- Standard PO, Planned PO, Contract PO.

Goods Receipt :-
Goods Receipts (GR) is created to reflect the Goods Receipts for the specified material ordered
from a vendor using Purchase Order process. After receiving the goods the company can
record the following information, this information can be used for accounting, stock check and
rotation, to return any goods if there is a problem
What goods were delivered,
Which vendor delivered the goods.
Who, how, when goods were delivered and received the goods.

Goods Receipt Invoice (GRIN) :-

Goods receipt Invoice process is one of the important process in procurement process
cycle. It is matching the goods that a company receives with the company PO (purchase
order). It involves checking the goods are not damaged and fit for use, verifying the price,
quantity, payment terms. Goods movement are entered in to the system with reference of
Purchase order and goods receipt material documents are posted, automatically appropriate
general ledgers are posted and stock accounts are updated.

Invoice Verification :-
After GRIN process, next process of procurement to pay is invoice verification. It plays an
important role in procurement process and Materials Management Module which performs
the following tasks
A Vendor Invoice can be created with reference to a Purchase Order, a Goods Receipt, a
Delivery Note..
Invoice is verified in-terms of prices, quantity,
Necessary approvals by project managers
After verifying all the data, the invoice is posted and the data is saved in the system. The system
updates the invoice data in Materials Management and Financial Accounting.

Payment to Vendors:-
The last step in procurement process cycle is payment to vendors and it is also known procure
to pay process. Vendors are get paid as per payment terms. In this fast technology world,
companies can pay through many methods to vendors. For example – through Net banking,
Check payment etc

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