Archive for November, 2009
SAP R/3 Modules Overview and Applications
In this article we have discussed all SAP R/3 modules overview.
Basis – BC (BASIS Components) accessed through SAPGUI (Graphical User Interface). It is middleware that links the SAPGUI client to SAP applications, the database, and OS (Operating System).
ABAP- ABAP is a SAP proprietary programming language. SAP R/3 supports nearly all databases: Oracle, Informix, DB2 for UNIX, DB2/400, Microsoft’s SQL Server 6.0 etc.
Financial – FICO (Financial Accounting and Controlling), EC (Enterprise Controlling), AM (Asset Management) / EAM (Enterprise Asset Management), TR (Treasury), IM (capital Investment Management), GL (General Ledger).
Applications – AP/AR (Accounts Payable/Account Receivable), AA (Asset Accounting), LC (Legal Consolidation), GL (General Ledger), FM (Funds Management), BL (Bank-related Accounting), TR-CB (Cash Budget Management), TR-MRM (Market Risk Management), TR-CM (Cash Management), TR-LO (Loans Management), TR-TM (Treasury Management), Profit and Loss Accounting, Cost of Sales Accounting, Parallel set of books, Integration of Controlling, Balance Sheet by any dimension.
HR (Human Resource) – PA (Personnel Administration), PD (Personnel planning and Development)
Applications- PA-APP Applicant Management, PA-BEN Benefits, PA-EMP Employee Management, PA-INW Incentive wages, PA-PAY Payroll, PA-TIM Time Management, PA-TRV Travel Expenses, PD-OM Organizational Management, PD-RPL Room Reservations Planning, PD-WFP Workforce Planning, PD-SCM Seminar and Convention Management, PD-PD Personnel development.
Logistic and Manufacturing – MM (Material Management), MRP (Materials Requirement Planning), Material Ledger, SD (Sales & Distribution), PP/DS (Production Planning and Detailed Scheduling), LO (General Logistics), Service Management, PM (Plant Maintenance), Central Functions.
Applications- MM-PUR Purchasing, MM-IM (Inventory Management), MM-WM (Warehouse Management), MM-IV (Invoice Verification), MM-IS (Information System), MM-CBP (Consumption Based Planning), MM-EDI (Electronic Data Interchange), SD-MD (Master Data), SD-CAS (Sales Support), SD-SLS (Sales), SD-SHP (Shipping), SD-TR (Transportation), SD-BIL (Billing), SD-SIS (Sales Information System), SD-EDI Electronic Data Interchange (EDI), SD-GF (General Sales Functions), PP-SOP (Sales and Operations Planning), PP-CRP (Capacity Requirement Planning), PP-MP (Master planning), PP-ATO (Assembly orders), PP-BD (Basic Data), PP-IS (Information System), PP-KAB (Kanban/Just-in-Time), PP-MRP (Material Requirements Planning), PP-PDC (Plant Data Collection), PP-PI (Production Planning for Process Industries), PP-REM (Repetitive Manufacturing), PP-SFC (Production orders), PM-EQM (Equipment and Technical Objects), PM-IS (PM Information System), PM-PRM (Preventive Maintenance), PM-PRO (Maintenance Projects), PM-SM (Service Management), PM-WOC (Maintenance Orders Management), LO-AB-TC (Trading Contract), LO-BM (Batches), LO-ECH (Engineering Change Management), LO-EHS (Environment Management), LO-EWB (Engineering Workbench), LO-HU (Handling Unit Management), LO-LIS (Logistics Information System), LO-MAP (Merchandise & Assortment Planning), LO-MD (Logistics Basic Data), LO-MDS (Merchandise Distribution), LO-PDM (Product Data Management), LO-PR (Forecast), LO-RIS (Retail Information System), LO-SCI (Supply Chain Planning Interface), LO-SRS (Retail Store), LO-VC (Variant Configuration).
Product Life Cycle Management (PLM) – QM (Quality Management), QM-QP (Quality Planning), QM-IM (Quality Inspection processing), QM-QC-AQC (Quality control), QM-IT (Test equipment management), QM-QN (Quality notifications), QM-CA (Quality certificates), PS (Project System), DMS (Document Management System).
Applications- SAP Project and Portfolio Management, SAP Environment, Health and Safety
SAP PLM Recipe Management, Audit Management, QM-CR (General functions), QM-PT-RP (Control in logistics), PLM400 (Quality Management) or LO170 (Quality Management), PLM405 (Quality Inspections) or LO705 (Quality Inspections), PLM410 (Quality Notifications) or LO710 (Quality Notifications), PLM425 (QM in Sales and Distribution/Quality Certificates) or LO725 (QM in Sales and Distribution/Quality Certificates), PS-CAF (Payments), PS-CON (Confirmation), PS-COS (Costs), PS-CRP (Resources), PS-DAT (Dates), PS-DOC (Documents), PS-IS (Information System), PS-MAT (Material), PS-PRG (Progress), PS-REV (Revenues and Earnings), PS-SIM (Simulation), PS-ST (Structures), PS-VER (Versions).
Cross Application (X-Apps) – xApp for Manufacturing Integration & Intelligence, APO (Advanced Planner and Optimizer) – Live Cache, WF (Workflow), BW (Business Warehouse) 3.5, BIW (Business Intelligence & Data Warehousing), Analytics, xPD (Product Definition)
SAP Business Suite(formerly New Dimension) – ERP 6.0 (2005) with ECC 6.0, CRM (Customer Relationship Management), SCM (Supply Chain Management), SAP Auto-ID Infrastructure, SAP Supply Network Collaboration, SAP Extended Warehouse Management, SRM (Supplier Relationship Management), SAP Catalog Content Management, SAP SRM as Add-on for ECC.
Applications- Analytics, Channel Management, Interaction Center, Field Applications, Implementation & Operation, Sales with mySAP CRM 2005, SAP Marketing, SAP Service, Planning, Manufacturing, Order Fulfillment, Enterprise Buyer, Procurement.
NetWeaver “Business Process Management” apps – KMC (Knowledge Management & Collaboration) for 2004s – Document management service, Content Management service; XI (Exchange Infrastructure), morphing to PI (Process Integration), EP (Enterprise Portal)
IS (Information Systems) Management - CCMS (Computing Center Mgmt System), Master Data Management (MDM 5.5 SP04).
Applications- BC-CCM-ADK Archiving Development Kit, CCM-API Application Program Interfaces, CCM-BTC Background Processing, CCM-CNF Configuration, CCM-HAV High Availability, CCM-MON Monitoring, CCM-PRN Print and Output Management, MDM100 (Master Data Management), MDM101 (MDM GDS), MDM300 (MDM Print Publishing), MDM400 (MDM Data Modeling).
GRC (Governance, Risk, and Compliance) SDN – Virsa, GTS, xEM, CPM (Corporate Performance Management), SEM (Strategic Enterprise Management): Strategy Management, Business Planning and Simulation (BI), Credit Management.
Credit Card Debt Settlement – It may be worth sacrificing your credit score
Anyone in advertising will tell you that the most effective marketing campaign is one that manages to attach an emotion to a product. Clothes, makeup and weight-loss products are marketed to women on the basis that the they will feel sexier, prettier and more attractive, ultimately leading to love. Cars, beer and aftershave are marketed to men on the basis that the they will be “cooler” and attract prettier women. Coca-Cola and McDonald’s show people laughing and having fun, suggesting they will feel happy when drinking a Coke or eating a Big Mac.
Similarly, we are taught through lending practices, parental suggestion, bank advertising and social pressure that a poor credit score suggests not only the loss of untold dollars due to higher interest rates on loans, but amazingly, that a high credit score makes you a “good” person and a low credit score makes you a “bad” person. Who hasn’t seen the silly television commercials that suggest you’ll be driving a junker car and working at the Renaissance Faire if you have a low credit score?
This identity-attachment we place on our credit score is so subtle that most people do not even realize it is affecting their financial decisions. I’ve actually met people who would love to buy a home but stop themselves with a fear-based rational such as, “I might lose my job and not be able to make my mortgage payments.” What does that actually mean? The deeper thread goes like this, “And if I miss my mortgage payments I may have to sell the house for less than I owe, or worse, foreclose, and that would hurt my credit score and that would make me a bad person.” People don’t actually put those words to their thoughts but that is the emotional journey they take that prevents them from buying a home.
We’re taught to treat our credit score as if it is part of our identity and guess what? It isn’t.
If you currently have a low credit score and find yourself suffering from the belief that you are a failure, that you are not good with money, or that you don’t deserve a loving spouse, great kids, a good job and “the pursuit of happiness” as much as everyone else does, then discard those thoughts right now. Having a bad credit score doesn’t make you a bad person any more than not wearing designer clothes or driving a sports car makes you unloveable. Your credit score is a product, just like everything else advertised to you, and it IS NOT connected to your identity.
What your credit score IS, is one piece of an overall financial picture that includes your income, your expenses, your investments, your assets, your business, your retirement savings and your debt. I’m suggesting that you look at that whole picture and not make financial decisions based solely on whether or not you might affect your credit score.
If you’re in debt, what that means is that there may be some financial choices available to you, some as small as skipping a credit card or mortgage payment, some as large as bankruptcy or home foreclosure, and inbetween options such as a short sale or debt settlement, that may be viable even if they will lower your credit score.
I know, that’s a bold statement, one that most people would disagree with on face value. To see what I mean, lets look a little deeper.
Your credit score is a vague, logarithmic calculation that assesses risk for lenders. A low credit score doesn’t mean the borrower can’t get a loan. People just out of bankruptcy court routinely receive credit card offers in the mail and we’ve all seen commercials for “low credit, no credit” car loans. More likely than having no access to credit, a low credit score simply means that the borrower will pay more for credit in the form of higher points and interest.
The banking industry would have you believe that, in addition to being a “bad” person, those points and interest on future loans will cost you SO MUCH money that you couldn’t possibly ever consider doing anything that would lower your credit score.
Let’s do the math on what a low credit score might actually cost. Say you are buying a $25,000 car, $5,000 down and $20,000 financed. If you have a “good” credit score, you might get a 5% loan. Over 60 months, the total interest paid will be $2645. With a median credit score you might get a 6% loan which would amount to $3199 in interst. A bad score with a 7% loan, $3761. The difference between the high score and the low score is $1100 in interest over 60 months, about $18 a month.
What about with a house? Say you want to buy a $500,000 home with 20% down (sorry, the 0-10% down days are over for awhile). So you’re financing $400,000 for 30 years. At 5% you’ll pay $373,000 in interest. (I know, brutal, right? Almost 100% interest over the course of the loan. Most people never consider what a home will actually cost by the time they are done paying it off, but that’s another article). At 7%, you’ll pay $558,000 in interest. A difference of $513 a month for 360 months.
The point is, IT’S NOT THAT BIG OF A DIFFERENCE. $18 a month on a $25,000 car. $513 a month on a $500,000 home. Yes, sure, $500 a month is not meaningless, but it’s not the, “oh my gosh I might hurt my credit score what am I going to do?” doomsday heart palpitations that so many people have when they even consider the notion of their credit score being under 700, or under 600.
If you already own your home and don’t intend to borrow money for any big ticket items in the near future, your credit score becomes even less of a factor in your overall financial picture.
When I had an 800 credit score, I was able to get over $200,000 in credit to pursue a business venture. When the business venture didn’t work out as planned and I couldn’t meet my monthly interest payments on my cards, a bankruptcy attorney told me about the process of negotiating settlements on credit card balances, to pay them off for less than the amount owed. My first question was, “how will that affect my credit score?”
In about six months of settlement negotiations, I reduced my credit card debt from $212,000 to $30,000 and I had $115,000 in debt written off. This reduced my credit score by about 200 points, to just over 600.
But I had $115,000 in debt written off, not to mention all the interest I would have paid on the $212,000 in debt at 18-29% over years of minimum payments. I couldn’t buy enough new cars in my lifetime at 2 or 3% higher interest to add up to more than I saved by settling my debt.
Had I been the homebuyer in the example above, I would have paid $185,000 more in interest over 30 years, compared to saving $115,000 in six months.
The point is, if you’re in debt, debt settlement may be a viable option that will save you more money in the long run that you’d save by having a higher credit score and paying a point or two lower on your next car loan.
I’m not suggesting that anyone abandon their credit score to the wind and adopt unsound financial habits. I am suggesting that in the conversations you have with your attorney, accountant, spouse and self, give credit score considerations their proper due. They are a single part of a large financial equation, not the end-all, absolute factor that your lenders and silly television commercials would have you believe.
Debt Pros and Cons
Pro: Less Harassment
If you have ever had credit card debt before then you know how annoying it is to receive calls, letters, and even e-mails asking for payments. Once you enter a debt negotiation program, you’ll be on your way to reducing and paying off your debt, and those calls will often stop almost immediately.
Con: Temporary Setbacks
Sometimes with credit card negotiation, your credit score will temporarily take a hit. This may have you running for the hills, but do not give up just yet. As the phrase goes, some times you have to take a step backwards to take two steps forward. And remember, by making your payments on time your credit score will eventually come back up.
Pro: Improved Credit
If you have been in debt for a while then your credit may already have been affected. However, it is never too late to get your credit back together. Debt specialists will usually work hard to negotiate your debt down to a manageable amount, which will help you improve and manage your credit.
Con: Creditors Get Stingy
Occasionally when creditors are being negotiated for less, they start to get a little stingy. In the worst-case scenario, they may take you to court in attempt to get all of their money. However, many debt negotiation programs provide insurance for this type of situation, and to be perfectly honest it very rarely actually happens.
Pro: Personal Service
When you hire a company to help reduce your debt, you will be assigned a personal negotiator that will work on your specific case. That specialist will get to know you and your case very well, which will make it easier for them to speak on your behalf and more likely to lower your debt quickly and efficiently.
Con: Not Everyone Qualifies
While this could also be a pro in a way, most debt negotiation programs require certain qualifications for their services. One qualification is that you have a minimum amount of debt, and the specific amount will vary by company, but is usually around $10,000.
Pro: Reduced Debt
The biggest and best pro of all is the end result, reduced debt. Some debt negotiation services boast they can lower your debt anywhere from 40-60%, which can amount to quite a chunk of cash. Although the specific reduction percent will vary per client, in the end the debt is almost always reduced by a significant amount.