Wednesday, June 10, 2009

SAP BASIS : Introducing SAP R/3

Introducing SAP R/3


SAP is the most successful product for enterprise resource planning (ERP). It has control the ERP management systems, which is a system that automates and integrates all facts of business operations including planning and sales as well as cover marketing, order tracking, inventory control, customer service, finance and human resources.

SAP stand for Systems, Application, Products in Data Processing. The full Name of parent company is SAP AG. SAP is based on Walldorf, Germany, and is the world largest enterprise software company. Its foundation is built upon the concept of integration. SAP is the three dimensional integrated software, which means:



  • The integration of core business systems within an organization that is front-end to back-end.


  • The seamless flow of data between two organizations that transact with each other


  • The ability for participants in an industry to use any system and still communicate with other participants in that industry – if both the parties to a transaction use SAP, then all purchase orders, sales orders etc are automatically entered into both parties’ system with one click ( i.e. on approval of the purchase )

In 1970s, controversial approach of combining various business functions came into one application and database. “ Dietmar Hopp, Hans-Werner Hector, Hasso Plattner, Klaus Tschira and Claus Wellenreuther – former IBM employees – launched SAP, in order to turn the real-time business processing vision into reality.

One year later the first financial accounting software formed the basis for the continuous development of other software components, which came to known as the “R/1 System.“ “R” stands for real time data processing.

By the end of decade, IBM database and dialog control system led to the birth of SAP R/2. Which is designed to handle different language and currencies. The SAP R/2 system attained high level of stability of the previous generation of programs.

With the SAP R/3, SAP ushered in a new generation of enterprise software – from mainframe computing to the three tier architecture consisting of the Database layer, Application (Business Logic) layer and User Interface layer. The client server architecture is the standard in business software.

SAP developed mySAP workplace and paved the way for the idea of an enterprise portal and role specific access to information. SAP is providing its customers with solutions for end-to-end business processes. SAP R/3 is the customized software, which is delivered to a customer with selected standard process turned on and many other optional process turned off. SAP R/3 consists of about 10,000 tables, which control the way the processes are executed and to run SAP in the desired manner, the setting of these tables is adjusted by configuring accordingly.

An enterprise having functionality that includes, Financial Accounting (e.g. General ledger, accounts receivable etc); Management Accounting (e.g. Cost Center, Profitability Analysis, etc); Sales Distribution, Manufacturing, Production Planning, Purchasing, Human Resources, Payroll, etc.


SAP R/3 is an integration business software system that aims to eliminate duplication of efforts information is entered once and shared across all functions. This comprehensive and highly generic business application system was designed for companies of various organizational structures and different lines of business (e.g. production, retailing, finance, etc.) To manage the Metadata of these tables, SAP R/3 maintains its own dictionary, which is stored in a SAP relational database and can be used by the SAP application program.

SAP intended to keep a degree of vendor independence; the application server software can run on a number of platforms that have included several Unix flavors, VMS and Microsoft Windows NT, such like many other application systems. SAP R/3 supports a variety of relational databases, include Oracle, Adabas, Informix and MS-SQL server. Front-end software uses their own proprietary protocols a top TCP/IP, which run various platforms.

Architecture of SAP R/3

The term SAP R/3 stands for runtime system three and provides a set of business applications designed for the client-server environment. The R/3 evolved from SAP’s original SAP R/2 system, which was based on a mainframe. The R/3 architecture allows distribution of the workload to multiple PCs linked together through a network. In the SAP runtime, three (SAP R/3) is designed in such a way that it distributes the presentation, application logic and data management to different computers.

Above figure shown how the R/3 Basis System form a central platform within the R/3 system. Below are listed the tasks of the three logical components of the R/3 Basis System.



Component Service – Kernel and Basis
Three services are a runtime environment for all R/3 applications, hardware, operating system, and database specific. The runtime environment is written principally in C and C++ and some parts are also written in ABAP. The tasks of the kernel and basis services component are as follows.


· Running Application: All R/3 applications run on software processors (virtual machines) within this component.
· Users and Process Administration: An R/3 system is a multi-user environment and each users can run several independent applications. This component is responsible for the task that usually belong to an operating system. Users simply log onto the R/3 system and run applications within it. In this way, they do not came into contact with the actual operating system of the host. The R/3 system is the only users of the operating system.
· Database Access: Each R/3 system is linked to a database system, consisting of the database management system (DBMS) and the database itself. The applications use basis services to communicate with the database. They do not communicate directly.
· Communication: R/3 applications can communicate with other R/3 systems and with non-SAP Systems. It is also possible to access R/3 applications from external system using a BAPI interface. The service required for communication are all part of the kernel and basis services component.
· System Monitoring and Administration: The component contains program that allow you to monitor and control the R/3 system, while it is running and changes its runtime parameters.




Component Service – ABAP Workbench
The ABAP ( Advanced Business Application Programming ) workbench component, a full-fledged development environment for applications in the ABAP language, helps you to create, edit, test and organize application developments. It is fully integrated in the R/3 Basis System.



Component Service – Presentation
The presentation components are responsible for the interaction between the R/3 system and the user and for desktop component integration ( such as word processing and spreadsheets ).



SAP Integrated – Analysis, Implementation and Design

R/3 uses three levels of abstraction to describe the mapping between ‘real-world entities’ and R/3 system entities. The levels are further differentiated into, a process view, a function and a data views. These views are connected to each other rather loosely.



The topmost level is the Analysis level. In the analysis level, the processes are modeled with EPCs (Event-Controlled Process Chains), which describe how business processes are carried out using R/3. An EPC consists of several state and actions and describes the side-effects like informing someone that an action has taken place.

Functions are described in terms of R/3 modules with each module serving a special functional purpose within the company. For example, the module HR (Human Resource) helps to manage that staff data. SAP and R/3 uses SERM (Structured Entity Relationship Model) for data modeling. SERM was invented by SAP but closely related to the common entity relationship model.

The second level is the design level in which the processes are modeled with workflows, which are user defined EPCs. There is no notation to specify functions at this level. The data model of the Analysis level is mapped to relational tables and foreign keys at this level. The data dictionary (DDIC) and its tools help to maintain the association between SERM-entities (and relationships) and relational tables.

The lowest level is the implementation level in which the processes are implicit (transaction sequences consisting of functions working on tables). Functions here can be represented as ABAP/4 programs and reports. The data is modeled by SQL tables and ABAP/4 variables.



Three-Tier Architecture

The sap R/3 is a multi-tier client server system. In SAP, the software components are arranged tiers and functions depending on their position. SAP R/3 consists of at least one presentation server, one application server and one database server. R/3 does not support distributed databases, as distributed databases are not safe enough for practical use. Each application server consists of one message server, which handles the communication with other system servers. Below figure shown a multi tier (three tier) client-server-architecture of SAP R/3 System – Presentation Layer, Application Layer and Database Layer.



Presentation Layer
The SAP graphical user interface (SAP GUI) is run on this layer. No application logic is processed in this layer. SAP GUI does not adhere to the style guideline of its host system. This layer contains the software components that make up the SAP GUI (Graphical User Interface). This layer is the interface between the R/3 system and its users. The R/3 system uses the SAP GUI to provide an intuitive graphical user interface for entering and displaying data. The Presentation layer sends the users input to the application server and receives data for display from it. While a SAP GUI component is running, it remains linked to a user’s terminal session in the R/3 system.




Application Layer
This layer executes the application logic in the SAP R/3 architecture, like DynPros and ABAP/4 modules. It sends the data to be presented to the user, to the presentation layer. It comprises the business administration ‘know-how’ of the system and processes pre-defined and user-defined application programs, such as OLTP and the implementation of decision support queries. Application server are usually connected via local are network with the database server.

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, only need one application server to run an R/3 system. In practice, the services are distributed across more than one application server.)

This means that not all application server will provide the full range of services. 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 choose an appropriate server when a user logs onto the system.




Database Layer
This layer holds the system-wide database and the central booking process of the SAP R/3 architecture. The database layer comprises of a central database system, which contains all the data in the R/3 system. The database system has two components – the database management system (DBMS) and the database itself.

The R/3 system support the database systems from other suppliers such as ADABAS D, DB2/400 (on AS/400). DB2/Common Server, DB2/MVS, INFORMIX, Microsoft SQL Server, ORACLE and ORACLE Parallel Server, SAP does not manufacture its own database.
The database does not only contain the master data and transaction data from your businesses applications but also the data for the entire R/3 system is stored there. 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 application. Application consist of program code, screen definitions, menus, function modules and various other components are also present in the database. These are stored in a special section of the database called R/3 repository and are accordingly called repository objects.



Why Multi-tier Architecture ?

The distribution of the R/3 software over three layers means that the system load is also distributed. This leads to better system performance. The database system contains all of the data for the entire R/3 system. It is subject to a very heavy load when the system is running. It is therefore a good idea not to run application programs on the same host. The architecture of the R/3 system – with Application layer and Database layer separate- allows you to install them on separate hosts and let them communicate using the network.



It also make sense to separate program execution from the task of processing users input and formatting data output. This is made possible by separating the presentation layer and the application layer. SAP GUI and the application server are designed so that minimum amount of data is transported between two layers. This means that the presentation layer components can even used on hosts that have slow connections to application servers.

The system is highly scalable the software components of an R/3 system can be distributed in almost any configuration across various hosts. This is particularly valuable in the Application Layer, where you can easily adapt your r/3 system to meet the increasing demand by installing further application servers.




Integrating Environments
Integration is the key element that separates SAP from other enterprise applications. Integration helps in connecting a business environment from Financials and Human Resources to Manufacturing and sales and distribution.

Integration in SAP, means that all the business process of any organization are related and interspersed with each other so that a changes in one field of the business will reflect on another field of the business.




Business Environment Modules

Financial Accounting (FI) General Ledger
Book Close
Tax
Accounts Receivable
Accounts Payable
Consolidation
Special Ledger

Controlling (CO) Cost Elements
Cost Centers
Profit Centers
Internal Orders
Activity Based Costing
Product Costing

Asset Management (AM) Purchase
Sales
Depreciation
Tracking

Project System (PS) Plant Shut-Downs (as a project)
Make to order
Third party billing (on the back of a project)
Human Resource (HR related to people; includes
employment history, payroll, training, career
management and succession planning.



Plant Maintenance (PM) Labor
Down time and outages
Material

Materials Management (MM) Requisitions
Purchase Orders
Accounts Payable
Goods Receipt
Inventory Management
BOM’s
Master raw materials, finished goods etc

Quality Management (QM) Planning
Inspections
Execution
Certificates

Production Planning (PP) Capacity Planning
Master Production Scheduling
Material Requirements Planning
RFQ

Sales and Distribution (SD) From orders to delivery
Shop floor
Sales orders
Pricing
Picking (and others warehouse processes)
Shipping
Packing

Cross Application (CA) WF (workflow)
BW (Business Information Warehouse)
Office (for email)
Industry solutions
Workplace
New Dimension products such as CRM, PLM,
SRM, ARO, etc.