BUS 301 Exam 1 (Chapters 1-4)

View

A collection of fields that belong to a specific organizational structure. Represented on specific tabs that must be completed.

Business Process(es)

A collection of linked tasks which are completed in the delivery of a service or product to a customer. Can exist entirely within a function or across multiple functions Each process creates data that the business uses to keep track of what we have spent, how much of something we have consumed, and how much we have in revenues through the sale of our goods and services.

Document Principle

A document must be generated and stored in the system for every transaction or event that causes a change in stock. The important information is that for any material movement, value and quantity are automatically captured.

Personnel Area

A personnel area represents a subdivision of the company code. You have to assign a unique personnel area to company code. An example of how this is set up could be different cities. It is generally based on a geographic location.

Personnel Subarea

A personnel subarea is a subdivision of a Personnel Area (as in Production or Purchasing), used in determining benefits. The subarea is a division of the Personnel Area. This enterprise structure, once in place will become a required piece of data for the master data associated with departments, positions, and employees to be entered.

Material Type

A set of rules defined by a company through SAP configuration to dictate how a particular kind of material is to be managed. Defines the characteristics and usage of material. The material typed we are using in this class include raw materials, finished goods, and trading goods.

Work Center

A specific physical location in a plant. It is where work is done. Can be defined any way the company chooses and is generally organized in a manner that aids in the tracking and management of the work being executed. A work center can be a single person, a group of people, a machine, or groups of machines.

Position

A specific, individual employee assignment. Positions are occupied by people at the company. Positions that are defined but are not occupied are considered to be vacant. Each position is typically occupied by one employee. It is possible to assign multiple people to a position in certain circumstances. Multiple positions can be related to organizational units. Positions can be related to other positions or related to an organizational unit.

Personnel Administration

Allows companies to enter and process employee related data. PA automatically checks all data as it is entered to ensure that it is plausible. All employee related data is logged with an exact date. Data remains transparent in the time progression at all times. It created the basis for sound personnel decisions. All master data is entered in this submodule.

Personnel Development

Allows for planning and implementing specific personnel and training measures. A role of the Personnel Development submodule is to ensure that all of the employees in all of the functional areas are qualified for the position and will remain so in the future.

Material Master

Always organized in the same hierarchical fashion. Must contain the following organizational levels: client, plant, and storage location. Facilitates the organization of material-related information within the entire enterprise.

Value Added Activity

Any activities that add value to the organization or customer. All activities in a business must add value or contribute to an organizational goal. 1. Step transforms items towards completion 2. Step is done right the first time, not a rework step. 3. The customers cares or would pay for the step to be done.

Information Systems

Any organized system for the collection, organization, storage, and communication of information. The components of hardware, software, data, networking, and people are considered what makes up an information system. They provide information and knowledge which allow for business decisions.

Goods Movement Type

Any time a company receives materials that they purchased or ships goods to complete a sales order, the physical movement of the materials. Include both external movements (good receipts from external procurement, goods issues for sales orders- value coming in or going out of the company) and internal movements (goods receipts from production, withdraws of material for internal purposes, stock transfers, and transfer postings- value moving within the company).

Business Rules

Assert business structure and control or influence the behavior of the business. Business rules set things like how to do a credit check, how tot determine a shipping point, how to set purchasing limits, or who must authorize or sign off on a specific requirement as decided by the company. System is used and responds the same way every time. Internal controls of the system.

HCM Master Data

Contains the necessary employee information to conduct the business transactions. Employee master data is used in many other places throughout the organization. It is entered once at the client level and then other departments can display it. An employee is based on a master employee record. The master employee record contains all the data related to that employee over the course of their career. In the material master record, we maintained views that described the data relationships for different material usages. In HCM, for employee master records we use infotypes.

Wholesale

Customers that Pen Inc. sells that in turn sells the product to others. Pen Inc. Sells higher volumes at a regular frequency to its wholesales, so they get different pricing, conditions, and credit limits.

Master Data

Data repeatedly used in a system and is used to create a transaction. Base data required by other activities in the system. The core data that is essential to operations in a specific business or business unit.

Information

Data that is organized within a context of a question; something that can be used to increase knowledge. Can affect behavior, decisions, or outcomes. Must be in context, otherwise it is just data.

Organizational Unit

Departments. Departments describe the various offices of the company. They are structured according to task and functionally-related aspects. Together, several organizational units and their hierarchical relationships form an organizational structure.

FI (Financial Accounting)

Designed to collect the transactional data that provides a foundation for preparing the standard portfolio of reports including the balance sheet, statement of cash flows, and income statement.

Routing

Each instruction step lists the tools you need, the parts to use, and the specific order of assembly. The routing master record related and references the material master record for a finished good material type in SAP. The specific instructions of the manufacturing steps, where it is completed, who completes it, what materials are used and how much the steps costs to execute.

Material Master Record

Each material gets exactly one master record. Is assigned a unique alpha/numeric material number.

Employee Lifecycle

Each phase of an employee's career and much of his/her personal life must be captured and retained as data in the SAP HCM module. The employer is responsible for tracking and reporting many things to the IRS and the Social Security Administration in the US, such as taxes, social security, changes to benefit plans, retirement plans, and pensions, the number of dependents the employee has, and their marital status.

Storage location

Fourth organizational level The organizational structure that is used by material management and inventory management to track the quantity of stock. It also track the value of the stock within a physical location within a plant.

Non-value activity

Generate zero or negative return on investment of resources. Usually can be eliminated without impairing a process. Should continuously strive to remove non-value added activities.

SAP

German software company, SAP AG Business software, specifically ERP software. Designed for worldwide usage to satisfy the information needs for many business sizes. Business functions are called modules. SAP modules contain the master data and processes to support the organization. Companies decide which modules they want to implement, also offers CRM, SRM, and PLM.

Multi-level BOM

If the BOM contents have a component that itself has a BOM. An item in the BOM has its own BOM.

Extending View

If you want to add a new view to that saved material, such as Plant or Storage Location view, you do not change the material, but rather you extend it. When you extend, you are not creating the material again itself, but creating new views. Use the create function in SAP again and this time select the organizational structure you want to create the data for and then specific view you want to add.

Effective

Illustrates how well a process achieved the organizational goals with which it is aligned. Does not mean the same this as efficient. Can be effective but not efficient. Strategy: "Doing the right things."

MM (Material Management)

In short, SAP MM consists of all master data, system configuration, and processes necessary to complete the procurement, storage, tracking, and movement of materials within an organization. Include the processes that support the creation, internal storage, and movement of materials.

Variant BOM

In this case, you replace one material component with another (variable) to make a different product. This allows a company to maintain only one BOM for multiple materials. Pens with different ink colors.

Organizational Assignment

Integration between Controlling, Organizational Management, and Personnel Administration. This enforces the proper assignment of expenses, such as payroll, benefits, and training. It is important that people are assigned to the right levels so that the accounting functions can properly report on expenses. During the Hiring Action, staff enters the position number on the Actions infotype.

CO (Controlling)

Managerial accounting or controlling is designed to collect the transaction data that provides a foundation for preparing internal reports such as cost center performance, profit center analysis, and budget analysis that supports decision making within the enterprise.

ME ( Procurement)

Manages inventory management, purchasing, material resource planning (MRP), physical inventory, valuation, service master, invoice verification, and product catalogs.

Organizational Management

Manages the organizations departmental structure. Is where the organizational structure is defined. Every department and position must be created based on the company's own unique decisions. These entities are the master data of Organizational Management.

Non-stock item

Material for direct consumption and not put away in inventory. A material that is purchased by a department and never put away in inventory is said to be for consumption. Office supplies - a department orders poster boards for a training event. Office furniture - desks, tables, chairs purchased by a department for themselves that they pay for from their budget.

Trading Goods

Materials that we purchase from a vendor and resell to our customers without making any changes to it. Trading goods must have data defines that describes how it is purchased, how it is stored,how it is planned, and how it is sold.

Stock Item

Must have a master material record defined in SAP. A Stock material can be placed in inventory following a goods receipt. Stock can also be output from the manufacturing process (finished goods). Raw materials- materials used to manufacture other materials | components- used for manufacturing other materials.

Cost Center

Part of Controlling (CO) and represents a delimited location where costs are incurred. They are not a part of Organizational Management as they are created and maintained in the Controlling module. Cost centers can have relationships with either organizational units or positions.

Inventory Management

Primarily managed at the plant/storage level. The tools used to manage inventory in SAP is called Inventory Management. Part of the materials Management module and is fully integrated with the entire logistics system. Management of material stock on a quantity and value basis- how much we have and what it is worth. Planning, entry, and documentation of all Goods Movements (inbound and outbound) Carrying out the physical inventory.

Material

Products we have manufactured or products that they buy and simply resell. At the center of these businesses. Any item a company needs, purchases, manufactures, or sells.

ERP

Provides an organization with the ability to integrate most, if not all, the functional areas of an organization. It is software that automates and integrates core business processes. ERP software integrates these various functions into one complete system to streamline process and information across the entire company. Everyone can access the information they need at the same time, with real time information. Provides access across multiple function. Can be used for any size or type of business.

Shared Services

Represent functions that are used throughout the organization by all functions. Also referred to as supporting processes. Considered centralized functions. Support the core processes and leverage a standard way of doing work across multiple enterprises.

Organizational Data

Represents the legal and regulatory reporting structure of an organization. The information systems point of view and reporting here refers to the generations of reports to publish financial statements or make decisions. Provides a framework to capture and share data as well as monitor and control.

Master Data

SAP modules contain the master data and processes to support the organization. Represents the things with which we do business. Has a portion of its views defines at the client level. The core data that is essential to operations in a specific business or business unit. Defines the data we use repetitively to conduct our business.

Company Code

Second Level Represents a legal entity It is the organizational structure responsible for the generation of financial statements such as the balance sheet and the income statement. Applies to all modules that result in the creation of accounting transactions. Every client must have at least one company code.

Retail

Selling directly to the end consumer of the product. Retail customers generally pay more than wholesale and are treated differently from a tax perspective.

Validity Dates

Show the start date, the name of the position, and the end date for each of the changes. An employee can have many records for one info type, with different validity periods such as each separate position the employee has held within the company has a complete history. Are the start and end date of an event. 12/31/9999

Subtype

Some infotypes can be further divided. These further divisions are called subtypes. It can have the subtypes of Permanent Residence, Temporary Residence, and Emergency Address all with different validity dates. They subdivide the infotype data by subject matter, which makes it easier for you to access and manage information. Separate histories are created for each subtype. The subtypes are determined by the business and configured by the business analyst.

SD (Sales and Distribution)

Supports and enterprises sales function which includes pre-sales, the sales order process, shipping and transportation, billing, credit management, foreign trade, and the tracking of all of these functions.

PP (Production Planning)

Supports the planning of materials that are required for the production process as well as sales and distribution.

Integration

Synchronize a company's internal operations by connecting various technical systems in real time. Two or more functional process areas must be involved and maximizing of financial value should be done. Cross functional process or team.

Business Process Integration

Synchronize a company's internal operations by connecting various technical systems in real-time. Requires two or more functional process areas to be involved while maximizing financial value. Cross-functional process or team

Raw Materials

The basic materials we use to manufacture products. Usually purchased in quantities necessary to meet production levels. Usually purchased, stored in inventory, and they have value.

Dependent Requirement

The dependent requirement is demand (the need determined by planning for the things we need in order to manufacture) which is dependent on another material. In SAP, the items listed in the bill of materials are referred to as dependent requirements.

Functional Silos

The gathering of data to fulfill a need for a single area of your business. Every department has their own method for storing data in a database and is only accessible to certain people. Formed for political and technical reasons. Should avoid using functional silos.

HCM (Human Capital Management)

The goal of HCM is to provide a set of tools for the company to build and maintain this kind of workforce and use the integration as a basis for strategy, planning, and capacity management. The responsibilities of a Human Resources department generally fall into three major areas: staffing, employee compensation and benefits, and defining/designing work. Essentially, the purpose of the human resources department is to maximize the productivity of an organization by optimizing the effectiveness of its employees. Human capital management is the term used to describe the processes the Human Resources department executes to support the management of people across the organization. Contains a suite of tools: Job Design and Analysis, Workforce Planning, Recruitment and Selection, Personnel Development, Performance Management, Compensation, and Legal Issues.

Client

The highest level of an enterprise. Different clients separate the data of multiple independent companies or subsidiaries of a company. The rules that define how an organization operates are at the client level using dependent customizing activities. Client specific data includes user master data, data customization, and application/business data. The next level is company code.

Transactional Data

The history of what has been done meaning what we've made, bought and sold, who did it, and for how much. Transactional Data uses organizational data along with master data and adds specific process detail such as quantity, current date, the employee entering the data, and other time-specific data to form a complete historical record of the transaction.

Independent Requirement

The independent requirement is the Executive Pen because it is the finished product that we wish to sell to our customers. The executive pen is the independent requirement for which the BOM is built. An independent requirement (again, the need determined by planning what we want to sell) is a demand which is not based on the demand for another item, but the demand created from sales.

Finished Goods

The materials a company produces through its manufacturing execution (ME) activities.

Capacity

The maximum amount that something can contain or accomplish. The main driver for planning is capacity and capacity enables output. Capacity can be in currency, time, space, output, speed, the number that we own, and many other things.

Infotype

The screens that are used to enter master data. Infotypes are used to capture and store the data for HCM related items. You can store a variety of information about an employee in HR infotypes. They enable structured data entry and data maintenance and enable you to store data for specific periods. (Start and end dates) Infotypes are used to group related data fields and store it on one screen.

Transactional Data

The specific value that uniquely identify the execution of an individual task or transaction in an ERP system. Business transactions use organizational data, master data, and business rules as input to provide value to the company. Captures the specifics of when, how, who, and why for a given business transaction.

Organizational Structure

The structure that represents an enterprise in SAP ERP systems. Defines various levels in an organization. Structures subdivided into various organizational units that, for legal or business reasons, group items together.

Configuration

The technical definition and "set up" of a company's specific business rules and processes. Generally, the responsibility of the business analyst and functional SME's along with consultants. Allows many different companies to use the same software. Setting of values and creation of rules that re specifically put in place by a SAP customer to support the customer's specific business practices.

Database

The technology component responsible for storing our business data. All data is stored here. Important to have shared database that supports multiple functions.

Plant

Third level of organizational structure The central logistical structure responsible for the storage, production, and distribution of materials. The plant is an operating area, branch, or location within a company code. Each plant is assigned a single company code. A company code can have several plants. Used in several modules such as PM, MM, PP, and SD.

Personnel Management

To handle employee payroll calculations, manage employee benefits, assess eligibility to plans and benefits, enroll employees into benefit plans, and track costs and compensation. Supports PA, PD, OM

Departmental Structure

Typical functions include Organizational Structure, Job Descriptions, Planning Scenarios, Personnel Cost Planning, Cost Centers, and Positions. Organizational Management manages the organizations departmental structure. The Human Resources department is responsible for maintaining the organizational structure for Pen Inc.

Enterprise Structure

Unlike the legal and reporting structure discussed in previous chapters, the enterprise structures of HCM are required to represent statutory, regional, and organizational conditions in an organization for people. Similar to organizational structure, but reffered to as enterprise structure. Consists of: Client, Company Code, Personnel Area, and Personnel Subarea. This enterprise structure, once in place will become a required piece of data for the master data associated with departments, positions, and employees to be entered.

Good Receipt

When the business receives and accepts the purchased materials (Raw materials/trading goods). When goods are received by or issued from stores or the warehouse, the stock on hand (physical count and value) is increased or reduced by the amount of the quantity received or issued. Stock can also be output from the manufacturing process (finished goods).

Latency

Where nothing happens which causes inefficiencies. When waiting for something it robs us of time Time is money Wait time is added to processing time of a product or service.

Person

an employee in the company who holds a position. It can also be filled by a person that is not employed by the company. A relationship is created between the person and the position when the Hiring Action takes place. This is done by entering the position number during the action. Once the action has been completed, the position is no longer vacant.

Efficient

defines how well we are executing our standard process from the standpoint of time, quality, and resources being consumed. Does not meant the same thing as effective. Can be efficient but not effective. Tactics: " Doing the right things"

Data

facts and statistics collected together for reference or analysis. Should be accurate and timely, specific and organized for a purpose, presented within a context that gives it meaning or relevance, and can lead to an increase in understanding and decrease uncertainty. It is a dictionary, it does not contain meaning until put into context where it then becomes information.

Personnel Action

groups of infotypes connected, so the required screens will appear in the order needed to record the data. An employee can have many different infotypes that need to be completed. HCM has a way to make sure that each of these is presented to the staff member entering the data.

Single-level BOM

simply refers to dependencies If all items below the finished good BOM are complete in and of themselves, it is a single layer.

Data Integrity

the accuracy and consistency of data over its life cycle. must be a single version of the truth. low quality data is not useful. Rules that govern the creation and management of data must be applied. Can be compromised by human error, transmission errors, software bugs/viruses, and hardware malfunctions.