SAP Business Bydesign

Table of Contents

1Introduction

1.1Tenant

1.2Reference System

2Introduction to Business Process Management

2.1Overall Objectives

2.2Roles and Segregation of Duties

2.3Specific Information

2.4Master and Organizational Data

2.5Assignment Deliverables

3Business Scenario: Procurement (Procure-to-Pay)

3.1Objectives

3.2Overview of Business Tasks

3.3Login

3.4Create Sales Order

3.5Planning and Release Purchase Proposal

3.6Process Purchase Request and Order

3.7Approve Purchase Order

3.8Post Goods Receipt

3.9Check the General Ledger Entries

3.10Post Supplier Invoice

3.11Approve Supplier Invoice

3.12Select Items and Make Payment

3.13Additional Optional Tasks (on your own)

4Business Scenario: Sales (Order-to-Cash)

4.1Objectives

4.2Overview of Business Tasks

4.3Display Sales Order and confirm ATP check

4.4Release Customer Demand

4.5Post Goods Issue

4.6Release Outbound Delivery

4.7Check the General Ledger Entries

4.8Create Customer Invoice

4.9Check Customer Account Balance

4.10Receive Incoming Payment via Check

4.11Check Status in Sales Order

4.12Additional Optional Tasks (on your own)

1Introduction

Thisassignment will introduce you to business transactions recorded in a fully-integrated system called an ERP (enterprise resource planning) system. The system we have chosen to use is called SAP Business ByDesign or ByD. There are other similar systems available in the small, midsize enterprise (SME) marketplace, but very few combine cloud computing with a fully-integrated solution for the entire business enterprise.

1.1Tenant

“On-demand” customers want to focus on their business, not on running software. They expect no upfront investment in hardware, predictable costs, and immediate access paired with rapid deployment. The SAP Business ByDesign on-demand (SaaS) solution is initially setup by SAP shortly after the customer requests it. The system is fully managed by SAP with high availability and highest data security. For SAP Business ByDesign at least a 1 MBit/s internet connection is recommended. SAP Business ByDesign is a web-based application and therefore only needs a standard web browser.

The Tenant Provisioning service encompasses the following elements:

Tenant Set Up:SAP sets up the tenant ready for implementation and enables a smooth Go Live of SAP Business ByDesign in full operative mode.

TenantOperation:SAP manages the availability of the network-centered application and monitors all the components of SAP Business ByDesign to see if they are up and running. It also checks the traffic load on essential components in order to forecast delays and to invoke additional processes to handle the overload.

Storage Operation:SAP takes care of the administration of all storage-related tasks with regard to SAP Business ByDesign operations.

Application Management:For tenant operations, SAP takes care of monitoring and maintenance of the SAP Business ByDesign application. This includes versioning, security, backups and system health checks.

1.2Reference System

A reference system is a system that is preconfigured and loaded with realistic users and sample data. The users and sample data are based on the model company Almika Inc. By following the step-by-step instructions in this hand-out, you will assume the identity of Almika users and use the built-in sample data to carry out each of the business process tasks.

2Introduction to Business Process Management

Currently only one tenant is assigned to all the students in our AIS course, so it is important that you write down all your document numbers and pay attention to instructions so that you do not tamper with another student’s work inadvertently. We will be using the following tenant which is assigned to our class.

2.1Overall Objectives

1. You will assume various roles and work within a medium-sized enterprise using an on-demand information system (SAP Business ByDesign)
2. To understand and execute various business processes and their variants
3. Perform different roles within the company and understand the responsibility and authorization for each role
4. To perform business tasks necessary to achieve the business process outcomes
5. Experience the end-to-end integration of SAP Business ByDesign
6. Learn to trouble shoot process issues within an ERP system
7. Describe the advantages of an on-demand solution for a small/medium sized enterprise

2.2Roles and Segregation of Duties

Normally, a company is run by people with different skill sets who perform different functions within the organization. Often these individuals are grouped according to their functions or roles within the company. For instance, there may be a sales department, an accounting department, production, and so on. A person’s function may be further refined within his functional area. For example, the sales department might have sales managers, sales reps, telemarketers, and so on. Typically an individual is allowed access to information, company assets, and given certain authority based on his or her role and denied access to other information, assets, and authorizations which he or she does not need to perform the tasks within the assigned role. This access limitation within the company is called segregation of duties (SOD). SOD along with other internal controls can help the company reduce the risk of fraud and errors.

Let’s look at an example: Almika Company makes and sells solar heating systems. The sales reps are allowed to negotiate prices with their customers. The sales rep enters the order for the heating system into Almika’s integrated ERP system, Business ByDesign. The warehouse delivers the heater to the customer and the engineer installs the system. The billing clerk bills for the heating system once it is installed at the customer’s site and the accounts receivable clerk collects the money from the customer. If the sales rep did all of these tasks, he could enter a sales order for one amount, bill the customer a higher amount and pocket the difference when payment came in. He could hide this fraud by adjusting the customer’s invoice to reflect the original sales order. Or, he could remove the heater from the warehouse and deliver it anywhere, even his own home. By segregating these duties or functions, Almika is reducing the likelihood that a single employee could commit such frauds.

Just telling an employee that he is not allowed to do certain tasks or access information is usually insufficient to prevent people from doing so. A well-designed integrated ERP system such as Business ByDesign allows users to access the functions they need to fulfill their given tasks and responsibilities within their roles, but prevents them from accessing areas within the system which are not needed to complete their job responsibilities. We will experience this system-enforced segregation of duties in this exercise. You will be asked to assume various roles as you complete each business transaction. Try to imagine yourself actually handing over a task to another employee within the company as you change roles.

Business roles within SAP Business ByDesign give each employee access to various work centers based upon their authorization. Therefore, as you progress through the exercises, you will have to logout and log back in as a different role to access different work centers. This reflects the real life situation where employees are given different roles, responsibilities and authorizations dictated by legal and functional objectives.

2.3Specific Information

The roles in the procure-to-pay business cycle transactions for this assignment are listed below:

2.4Master and Organizational Data

Each SAP Business ByDesign reference system contains essential master and organizational data, which reflect the typical organizational structure of a mid-size company of a specific industry and allow you to run the industry-specific processes using the appropriate master data; for example, materials, vendors, or customers.

The graphic below gives you a high-level overview of the organizational structure of ALMIKA.

Master Data for Business ScenarioThe following table shows the specific master data you will use for this section.

Approval LimitsThe following table shows some of the controls that have been put into the reference company to simulate a real business environment.

2.5Assignment Deliverables

Enter your student ID# here. Since all of us are logging in with the same login information, your student ID will help us follow your work within the system.

Complete the assignment for both the procure-to-pay (section 3) and the sales-to-cash (section 4) business scenarios in our tenant in SAP Business ByDesign. As you complete these transactions, you will be asked certain information and you could be asked to create a screen print. Write the answers to the questions and paste the screen prints into the document called “ByD Assignment Submission”. Submit your completed “ByD Assignment Submission” document in BB/WebCT by the due date for grading.

A note about grading: failure to follow assignment submission instructions, using another student’s online document, or failure to complete the assignment will negatively affect your grade. Making mistakes in SAP Business ByDesign may not affect your grade if you find and fix your mistake.

Work through any problems you might encounter by using the system troubleshooting tools such as the contextual help and learning centers. Learn to figure out how to fix things on your own as it is infrequent that an employer will have someone sitting around waiting to answer your questions. The best employees are those who are willing and able to problem solve.

3Business Scenario: Procurement (Procure-to-Pay)

You will execute the business scenario for Procure-to-Pay. The demand for procurement will be generated from a sales order.You will start by creating a Sales Order for Material P100710,Cylindercustomized Trade. This material is purchased from a vendor and resold to customers through two sales organizations – P1110 Sales Heating and 2100 BR Columbus. The distribution channel is Direct Sales. There is no in-house production for this material. The purpose of creating the Sales Order is to generate demand that will trigger the procure-to-pay business process. At the end of this procurement process you will end up with inventory of the material P100710,“Cylinder customized Trade”.

3.1Objectives

1. Perform different roles within the company and understand the responsibility and authorization for each role within the business process.
2. Experience the end-to-end integration of SAP Business ByDesign
3. Generate demand for a product that Almika sells to its customers by creating a sales order
4. Use supply planning to generate a purchase proposal for the shortfall of inventory to satisfy the demand
5. Explore and assign a source of supply for a purchase proposal
6. Understand why a purchase approval is important in the procurement process
7. Receive goods into inventory
8. Learn how to process supplier invoices including appropriate approvals for payment

3.2Overview of Business Tasks

Here is an overview of business tasks and the roles that will perform those tasks.

3.3Login

To start the exercises, login to this tenant

• If at any point during these exercises, your web browser warns you that the Cache limit has been reached, click yes to increase the limit and continue.
• IMPORTANT NOTE: Since we are “sharing” login information, if you do make a mistake logging in and lock a user for any reason, notify your instructor IMMEDIATELY so that the login is not blocked for other students.

3.4Create Sales Order

Logon and Work Center Information

Procedure

Record the Sales Order Number (at bottom of screen)

Log off, Click Yes on the message window. Restart Application

3.5Planning and Release Purchase Proposal

Logon and Work Center Information

Procedure

3.6Process Purchase Request and Order

Logon and Work Center Information

Procedure

3.7Approve Purchase Order