SAP ERP Business Process
Demand for finished products from customer will be recorded by Sales
department in a sales order document. Sales order data can be analyzed
by Inventory department. If there are not enough finished products in
current stock, the sales order can trigger a production order that
request the Production department to start producing the finished
products. In order to produce the finished products maybe it requires
some raw materials that have to be bought from vendors. The production
order can trigger a purchase requisition for the raw materials. The
purchase requisition will be processed by Procurement department to be
a purchase order that is sent to vendor. Vendor will deliver the raw
materials and Inventory department will receive them. Accounting
department will record the vendor's invoice and Finance department
will process the payment. Once the raw materials are available, the
Production process begins. Then the finished products will be
delivered to the customer, and Finance department will send invoice to
the customer.All of the above processes need man powers that are
managed by HR department and paid by Payroll Accounting department.
All of the above processes can be recorded by SAP R/3 in:
* Sales and Distribution (SD) module
* Production Planning (PP) module
* Material Management (MM) module
* Finance & Controlling (FI/CO) module
* HR module
Certain transactions in the above example also trigger accounting
business process. FI/CO module posts accounting documents for some
transactions that have an accounting effect in SD, PP, and MM module,
such as finished products issue for sale to customer, raw materials
receipt from vendor, etc. These processes will affect the financial
reports such as Balance Sheet and Profit & Lost Statement.
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