course hero how sap integrates the organization

How does SAP help ABC?

SAP provides different features that may help ABC to develop a better cost estimating system . The SAP cost estimation tool provides flexibility to input the cost for individual components and raw materials involved in the production. It is very easy to get the cost of individual components before they go through the production processes. The cost can be derived from the invoices and purchase orders and can simply be fed into ‘material master record’. Whenever a component is used in a certain product, SAP automatically picks up its cost and determines the optimum cost of the final product with the help of rules defined for the production process of manufacturing a particular product.

How does ABC work in SAP?

ABC should develop standard cost estimates for different product components. These standards should serve as benchmarks throughout the year so that actual variances in the costs of the components can be calculated. SAP provides with the basic cost components for products as per the components associated with them. Based on the experience, ABC should enter the component-wise standard costs break-ups in the material master record in SAP system. The system automatically integrates the individual costs of components to calculate the final standard cost of the whole product. So, the standard costs for all kinds of inventories such as ‘raw material’, ‘Work In Progress’ and ‘Finished goods’ are available in material master record.

What is SAP migration report?

The report covers the basic migration and integration process of SAP implementation along with key focus on two main areas- information management through SAP and strategic cost management with SAP.

What is ABC organisation?

As part of the restructure of management of the business process the management of ABC Organisation is looking at implementing a SAP solution. The problems of mapping the current business process to the SAP systems are well understood and the management feel that they have secured the services of a capable firm to help with the process. However before proceeding with the project the management still have a number of issues they would like to address before proceeding with the planed implementation.

What is MM module in SAP?

MM module is responsible for managing materials and inventory in SAP. However, value of the inventory must be reflected on financial accounts of a company. Stock of materials that a company has is its asset and it is a legal requirement to mention it on various financial reports.

What is SAP MM FI?

SAP MM FI integration is one of the advanced topics in SAP configuration. It is important to configure automatic postings in Financial Accounting and even more important to thoroughly test this configuration to make sure that postings are made to the correct G/L accounts.