SAP and ERP. Rab Nawaz Jadoon DCS. Assistant Professor. Department of Computer Science. COMSATS IIT, Abbottabad Pakistan

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1 SAP and ERP DCS COMSATS Institute of Information Technology Rab Nawaz Jadoon Assistant Professor COMSATS IIT, Abbottabad Pakistan Management Information Systems (MIS)

2 SAP and ERP SAP IS ERP but ERP IS NOT SAP SAP is part of ERP,, In ERP various tools are used, SAP is one of them,, 2

3 ERP ERP is for Enterprise Resource Planning. ERP software is a suite of business applications such as accounting, sales or payroll. The key difference between the ERP version of these applications and the stand-alone versions is integration. The applications share the same technical architecture, database, look and feel, and processing standards. SAP is one of the world's largest software vendors of ERP systems. 3

4 ERP ERP (Enterprise Resource Planning) is a concept and SAP is a ERP tool (software), however SAP has become synonymous to ERP because it has been widely used in around 26 industry verticals and enjoys a market share of 60% across the globe. 4

5 The other ERP's in market are BAAN, JDEdwards ORACLE ERP MFG PRO ERP s in Market Microsoft Business Solutions (Navision and Axapta) RAMCO which are very familiar, however even Tally has also ERP functionalities in it. 5

6 Case study Salary Processing 6

7 Manual Processing You calculate attendance based on the Register, arrive at no of days present and absent, manually reconcile leave and finally once the days payable are calculated you will arrive at what is the persons agreed salary, note down that, send the salary calculation sheet to accounts department, based on your sheet, the accounts with either prepare cheque or cash and handover the same to every employee with obtaining signature on the voucher 7

8 Case-2 - With ERP Software Imagine the attendance is taken through the access card machine / swipe card, or some sort of excel sheet this data will flow to ERP for calculation for salary eligibility (how much to pay) and allow system to process the salary slip and statement, Salary Slip automatically gets mailed to every employee, and the salary statement goes to the accounts department, 8

9 Case 2 With ERP System which will have details like Employee Code, Name, Designation, Dept. and Salary payable and more important the BANK Account number, the accounts dept. based on the salary statement will send the intimation to the bank with a single cheque authorizing to debit company account and credit the employee with his salary and all the relevant account entries are passed in the ERP software which will be accounted in respective general ledgers as Expenses, Liability etc. ALL THIS DONE WITHIN FEW HOURS or FEW DAYS This is the fun of ERP!!! 9

10 SAP (Systems Applications Products) SAP SE (Systems Applications Products in Data Processing) is a European multinational software corporation that makes enterprise software to manage business operations and customer relations. Headquartered in Walldorf, Baden-Württemberg, Germany, with regional offices around the world. 10

11 SAP Products The company's best-known software products are its enterprise resource planning application systems and management (SAP ERP), its enterprise data warehouse product, SAP Business Warehouse (SAP BW), SAP Business Objects software, and most recently, Sybase mobile products In-memory computing appliance SAP HANA. The company's main product is SAP ERP 11

12 SAP Versions SAP is one of the largest software companies in the world. The current version is SAP ERP 6.0 and is part of the SAP Business Suite. Its previous name was R/3. The "R" of SAP R/3 stood for real-time. The number 3 related to the 3-tier architecture: database, application server and client (SAPgui). R/2, which ran on Mainframe architecture, was the predecessor of R/3. Before R/2 came System RF, later dubbed R/1. 12

13 Enterprise Applications SAP ERP is one of five enterprise applications in SAP's Business Suite. The other four applications are: Customer Relationship Management (CRM) helps companies acquire and retain customers, gain marketing and customer insight Product Lifecycle Management (PLM) helps manufacturers with product-related information Supply Chain Management (SCM) helps companies with the process of resourcing its manufacturing and service processes Supplier Relationship Management (SRM) enables companies to procure from suppliers 13

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