SAP Company Facts – Investor FAQ

Investor FAQ
Company Facts

* When was SAP founded?
* What products and services does SAP offer?
* What does the acronym “SAP” stand for?
* Where can I find information about the SAP Executive Board?
* What is SAP’s current headcount?
* How much does SAP invest annually in research and development?
* What is a credit rating? Does SAP have a credit rating?
* Do SAP employees participate in the company’s success?
* What are the largest competitors of SAP?
* When will SAP announce its next quarterly figures?
* Which accounting standard does SAP use for its annual financial statements?
* In what currency are SAP’s results reported?
* Where can I read current SAP business and financial news?
* Where can I order SAP’s latest annual report?

When was SAP founded?
In 1972, five former IBM employees founded SAP. Their vision was to develop standard application software for real-time processing.

What products and services does SAP offer?
SAP is a world leader in business solutions, offering comprehensive software and services that address the unique needs of customers around the world. More information can be found on the SAP Solutions page.

What does the acronym “SAP” stand for?
“SAP” stands for Systems, Applications, and Products in Data Processing.

Where can I find information about the SAP Executive Board?
Access the Executive Board page for information about the SAP Executive Board.

What is SAP’s current headcount?
Reflecting its success, SAP hired many highly qualified professionals during 2007, strengthening our foundation for future success and continued growth. The number of full-time employees grew by 6,448 in 2007, of which some 500 were related to acquisitions. At the end of the year, SAP employed 44,023 people worldwide, of whom 14,749 were located in Germany.
2003 2004 2005 2006 2007
29,610 32,205 35,873 39,355 44,023 Employees at year end
+3% +9% +11% +10% +12% Change since previous year

How much does SAP invest annually in research and development?
SAP recognizes that we must continuously improve our portfolio of innovative products to maintain our leading position as a vendor of business software. R&D expenses grew 9% in 2007 to €1,458 million. The portion of total revenue that SAP spent (based on the adjusted measure) on R&D in 2007 was unchanged at 14%. Expenses for R&D include employee salaries and costs for externally procured development activities.
2003 2004 2005 2006 2007
832 900 1,071 1,287 1,458 Adjusted R&D expenses (in millions of euros)
-7% +8% +19% +20% +9% Growth (year-over-year)

What is a credit rating? Does SAP have a credit rating?
A credit rating is a qualified assessment and formal evaluation of a company’s creditworthiness and capability of repaying outstanding obligations on time. Credit ratings are especially interesting for companies issuing corporate bonds on the capital market in order to gain additional liquidity in the form of debt.

SAP does not have a credit rating from rating agencies such as Standard & Poor’s or Moody’s because of our sound liquidity situation and minimal debt. In addition, SAP has not issued corporate bonds on the financial market and does not rely on debt capital to finance the company.

Do SAP employees participate in the company’s success?
SAP offers our employees and managers various investment programs, such as the STAR, LTI, and SOP Plans as well as the Incentive Plan 2010.

What are the largest competitors of SAP?
Our main competitors are Microsoft and Oracle.

When will SAP announce its next quarterly figures?
Announcement dates are listed on our Financial Calendar.

Which accounting standard does SAP use for its annual financial statements?
Since fiscal year 1999 the accounts have been prepared with full disclosure in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP). This ensures direct comparability with the financial statements of our international competitors. In addition to the many disclosures required under U.S. GAAP, the notes to our statements contain a great deal of extra detail that we provide voluntarily.

In what currency are SAP’s results reported?
SAP is a European company, so our results are reported in euros.

Where can I read current SAP business and financial news?
Current SAP business and financial news are listed under Financial News and in the Press Room.

Where can I order SAP’s latest annual report?
You can order annual reports here.

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Sap Interview Questions

1. What is ERP? – ERP is a package with the techniques and concepts for the integrated management of business as a whole, for effective use of management resources, to improve the efficiency of an enterprise. Initially, ERP was targeted for manufacturing industry mainly for planning and managing core business like production and financial market. As the growth and merits of ERP package ERP software is designed for basic process of a company from manufacturing to small shops with a target of integrating information across the company.
2. Different types of ERP? – SAP, BAAN, JD Edwards, Oracle Financials, Siebel, PeopleSoft. Among all the ERP’s most of the companies implemented or trying to implement SAP because of number of advantages aver other ERP packages.
3. What is SAP? – SAP is the name of the company founded in 1972 under the German name (Systems, Applications, and Products in Data Processing) is the leading ERP (Enterprise Resource Planning) software package.

4. Explain the concept of “Business Content” in SAP Business Information Warehouse? – Business Content is a pre-configured set of role and task-relevant information models based on consistent Metadata in the SAP Business Information Warehouse. Business Content provides selected roles within a company with the information they need to carry out their tasks. These information models essentially contain roles, workbooks, queries, InfoSources, InfoCubes, key figures, characteristics, update rules and extractors for SAP R/3, Business Applications and other selected applications.
5. Why do you usually choose to implement SAP? – There are number of technical reasons numbers of companies are planning to implement SAP. It’s highly configurable, highly secure data handling, min data redundancy, max data consistency, you can capitalize on economics of sales like purchasing, tight integration-cross function.
6. Can BW run without a SAP R/3 implementation? – Certainly. You can run BW without R/3 implementation. You can use pre-defined business content in BW using your non-SAP data. Here you simply need to map the transfer structures associated with BW data sources (InfoCubes, ODS tables) to the inbound data files or use 3rd part tool to connect your flat files and other data sources and load data in BW. Several third party ETL products such as Acta, Infomatica, DataStage and others will have been certified to load data in BW.
7. What is IDES? – International Demonstration and Education System. A sample application provided for faster learning and implementation.
8. What is WF and its importance? – Business Work Flow: Tool for automatic control and execution of cross-application processes. This involves coordinating the persons involved, the work steps required, the data, which needs to be processed (business objects). The main advantage is reduction in throughput times and the costs involved in managing business processes. Transparency and quality are enhanced by its use.
9. What is SAP R/3? – A third generation set of highly integrated software modules that performs common business function based on multinational leading practice. Takes care of any enterprise however diverse in operation, spread over the world. In R/3 system all the three servers like presentation, application server and database server are located at different system.
10. What are presentation, application and database servers in SAP R/3? – The application layer of an R/3 System is made up of the application servers and the message server. Application programs in an R/3 System are run on application servers. The application servers communicate with the presentation components, the database, and also with each other, using the message server. All the data are stored in a centralized server. This server is called database server.
11. What should be the approach for writing a BDC program? – Convert the legacy system data to a flat file and convert flat file into internal table. Transfer the flat file into sap system called “sap data transfer”. Call transaction(Write the program explicitly) or create sessions (sessions are created and processed ,if success data will transfer).
12. Explain open SQL vs native SQL? – ABAP Native SQL allows you to include database-specific SQL statements in an ABAP program. Most ABAP programs containing database-specific SQL statements do not run with different databases. If different databases are involved, use Open SQL. To execute ABAP Native SQL in an ABAP program, use the statement EXEC. Open SQL (Subset of standard SQL statements), allows you to access all database tables available in the R/3 System, regardless of the manufacturer. To avoid conflicts between database tables and to keep ABAP programs independent from the database system used, SAP has generated its own set of SQL statements known as Open SQL.
13. What are datasets? – The sequential files (processed on application server) are called datasets. They are used for file handling in SAP.
14. What are internal tables check table, value table, and transparent table? – Internal table: It is a standard data type object, which exists only during the runtime of the program. Check table: Check table will be at field level checking. Value table: Value table will be at domain level checking ex: scarr table is check table for carrid. Transparent table: – Exists with the same structure both in dictionary as well as in database exactly with the same data and fields.
15. What are the major benefits of reporting with BW over R/3? Would it be sufficient just to Web-enable R/3 Reports? – Performance — Heavy reporting along with regular OLTP transactions can produce a lot of load both on the R/3 and the database (cpu, memory, disks, etc). Just take a look at the load put on your system during a month end, quarter end, or year-end — now imagine that occurring even more frequently. Data analysis — BW uses a Data Warehouse and OLAP concepts for storing and analyzing data, where R/3 was designed for transaction processing. With a lot of work you can get the same analysis out of R/3 but most likely would be easier from a BW.
16. How can an ERP such as SAP help a business owner learn more about how business operates? – In order to use an ERP system, a
business person must understand the business processes and how they work together from one functional area to the other. This knowledge gives the student a much deeper understanding of how a business operates. Using SAP as a tool to learn about ERP systems will require that the
people understand the business processes and how they integrate.
17. What is the difference between OLAP and Data Mining? – OLAP – On line Analytical processing is a reporting tool configured to understand your database schema ,composition facts and dimensions . By simple point-n-clicking, a user can run any number of canned or user-designed reports without having to know anything of SQL or the schema. Because of that prior configuration, the OLAP engine “builds” and executes the appropriate SQL. Mining is to build the application to specifically look at detailed analyses, often algorithmic; even more often misappropriate called “reporting.
18. What is “Extended Star Schema” and how did it emerge? – The Star Schema consists of the Dimension Tables and the Fact Table. The Master Data related tables are kept in separate tables, which has reference to the characteristics in the dimension table(s). These separate tables for master data is termed as the Extended Star Schema.
19. Define Meta data, Master data and Transaction data – Meta Data: Data that describes the structure of data or MetaObjects is called Metadata. In other words data about data is known as Meta Data. Master Data: Master data is data that remains unchanged over a long period of time. It contains information that is always needed in the same way. Characteristics can bear master data in BW. With master data you are dealing with attributes, texts or hierarchies. Transaction data: Data relating to the day-to-day transactions is the Transaction data.
20. Name some drawbacks of SAP – Interfaces are huge problem, Determine where master data resides, Expensive, very complex, demands highly trained staff, lengthy implementation time.
21. What is Bex? – Bex stands for Business Explorer. Bex enables end user to locate reports, view reports, analyze information and can execute queries. The queries in workbook can be saved to there respective roles in the Bex browser. Bex has the following components: Bex Browser, Bex analyzer, Bex Map, Bex Web.
22. What are variables? – Variables are parameters of a query that are set in the parameter query definition and are not filled with values until the queries are inserted into workbooks. There are different types of variables which are used in different application: Characteristics variables, Hierarchies and hierarchy node, Texts, Formulas, Processing types, User entry/Default type, Replacment Path.
23. What is AWB? What is its purpose? – AWB stands for Administrator WorkBench. AWB is a tool for controlling, monitoring and maintaining all the processes connected with data staging and processing in the business information whearhousing.
24. What is the significance of ODS in BIW? – An ODS Object serves to store consolidated and debugged transaction data on a document level (atomic level). It describes a consolidated dataset from one or more InfoSources. This dataset can be analyzed with a BEx Query or InfoSet Query. The data of an ODS Object can be updated with a delta update into InfoCubes and/or other ODS Objects in the same system or across systems. In contrast to multi-dimensional data storage with InfoCubes, the data in ODS Objects is stored in transparent, flat database tables.
25. What are the different types of source system? – SAP R/3 Source Systems, SAP BW, Flat Files and External Systems.
26. What is Extractor? – Extractors is a data retrieval mechanisms in the SAP source system. Which can fill the extract structure of a data source with the data from the SAP source system datasets. The extractor may be able to supply data to more fields than exist in the extract structure.

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What is SAP?

SAP is an acronym for “System Application & Products” which creates a common centralised database for all the applications running in an organization. The application has been assembled in such a versatile way that it handles all the functional department within an organisation. Today major companies including Microsoft and IBM are using SAP’s Products to run their own businesses.

R/2, which ran on a Mainframe architecture, was the first SAP version. Sap’s products are generally focused on Enterprise Resource Planning (ERP). Sap’s applications are built around R/3 system which provide the functionality to manage product operations, cost accounting, assets, materials and personnel. The R/3 system of SAP runs on majority of platforms including windows 2000 and it uses the client/sever model.

SAP provides majority of enterprise applications that includes:

1. SAP Knowledge Warehouse (KW)

2. Product Lifecycle Management (PLM)

3. Human Resource Management Systems (HRMS)

4. Supplier Relationship Management (SRM)

5. Supply Chain Management (SCM)

6. Customer Relationship Management (CRM)

7. Advanced Planner and Optimizer (APO)

8. Business Information Warehouse (BW)

SAP NetWeaver is the latest technology introduced by SAP. SAP’s products are mainly focussed on large organizations which mainly comprises of Fortune 500 companies and its a number one choice for ERP system worldwide. SAP has software solutions called SAP Business One (SAP B1) and SAP all in one which are mainly created for small and mid sized organizations. SAP products are used by millions people worldwide and in more than 120 countries and is constantly increasing.

SAP PS Organizational Structure

Organizational Structure

Each project starts with the definition and classification of the structures required for processing and the incorporation of these into the existing enterprise structure.

The Project System has no organizational structures of its own; you incorporate it into the existing structure by making assignments to the organizational units in Accounting and Logistics. It is this which enables the Project System to present data clearly and in many different ways.

SAP Customer List Update 1

Transaction Codes (T-codes ) For PS Module

Transaction For PS Module

T-Code Code Description
1. CJ20n Creation of Project
2. CJ20n Creation of WBS Elements
3. CJ20n Creation of Activities
4. CJ20n Assigning relationships to activities
5. CJ20n Assigning of milestones to activities/WBS Elements
6. CJ20n Assigning of materials of activities
7. CJ40 Planning of costs to project
8. IMCCP3 Copy Planned cost to budget
9. CJBV Availability Control of budget
10. CJ30 Assigning Budget to Project
11. CJ20n Release of Project/WBS Elements/activities
12. CN25 Confirmation of activities
13. CJ20n Maintain actual dates to milestones of WBS Elements/activities
14. CJ37 Supplement in project
15. CJ38 Return in project
16. KB21n Direct Activity Allocation
17. CNL1 Create Delivery Information
18. CNL2 Change Delivery Information
19. CNS0 Delivery from project
20. CNL3 Display Delivery Information
21. CJ2c/CJ20N Display Project
22. CJ41 Display cost planning
23. CJ31 Display Budget
24. CN28 Display Confirmations
25. CJ3B Display Document (BUDGET)
26. CN29 Cancel/Reverse of Confirmations
27. CN41 Structure Overview
28. CN42N Overview of Project Definition
29. CN43N Overview of WBS Elements
30. CN46N Overview of Networks
31. CN47N Overview of Activities
32. CN55N Overview of Sales Document items
33. CN53N Overview of Milestones
34. CN52N Components Overview
35. CN42 Enhanced Overview of Project definition
36. CN43 Enhanced Overview of WBS Elements
37. CN44 Enhanced Overview of Planned Orders
38. CN45 Enhanced Overview of Orders
39. CN46 Enhanced Overview of Networks
40. CN47 Enhanced Overview of Activities
41. CN48 Enhanced Overview of Confirmations
42. CN52 Enhanced Overview of Components
43. CN53 Enhanced Overview of Milestones
44. CNS54 Enhanced Overview of Sales and Distribution Documents
45. CNS55 Enhanced Overview of Sales Document items
46. ME5J Purchase requisitions for Project
47. ME2J Purchase Orders for Project
48. CNMM Project Oriented Procurement
49. CN60 Display change documents
50. S_ALR_87013542 Actual/Commitment/Total/Plan in Control Area Currency
51. S_ALR_87013557 Budget/Actual/Variance
52. S_ALR_87013560 Budget Updates
53. S_ALR_87013532 Plan/Actual/Variance
54. S_ALR_87013533 Plan/Actual/Commitment/Rem.Plan/Assigned
55. S_ALR_87013534 Plan1/Plan2/Act/Commitment

SAP CO Module (brief Intro)

The SAP CO (Controlling) Module provides supporting information to Management for the purpose of planning, reporting, as well as monitoring the operations of their business. Management decision-making can be achieved with the level of information provided by this module.

  • Some of the components of the CO (Controlling) Module are as follows:
  • o Cost Element Accounting

    o Cost Center Accounting

    o Internal Orders

    o Activity-Based Costing ( ABC)

    o Product Cost Controlling

    o Profitability Analysis

    o Profit Center Accounting