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Author's profile photo Former Member

Fast and Furious: SAP ERP Integration

We all know that SAP ERP is an integrated system.  But do we really understand what exactly that means?

Let’s walk through an example of how integration works in SAP ERP.  A warehouse employee enters a goods receipt referencing a vendor’s purchase order.  When the user saves the transaction, SAP ERP generates a material document and creates a system message which informs the user that he/she has successfully completed the goods receipt transaction. The user may think that the material document is the only action that SAP ERP performed. In some cases, the user would be correct.  More than likely, however, SAP ERP did a whole bunch more than just create that material document.  Once the user saved the transaction, SAP ERP sprang into action, creating additional documents, such as an accounting document. It updated the purchase order history and updated the on hand quantity in the material master.  SAP ERP could have also calculated a moving average price.  This is just a handful of the many integration points that are sparked by saving a goods receipt transaction.  SAP ERP performed these actions seamlessly and more important in real time.  That, my friends, is how an integrated system operates. Brilliant!

Still not convinced?  Okay, then let’s look at what would happen in a non-integrated system.  The warehouse employee enters the goods receipt for the purchase order.  He/she then picks up the phone, a rotary one, mind you, and calls accounting.  The accountant creates a general ledger transaction.  The accountant then releases a carrier pigeon, which will inform purchasing to update the purchase order.  And if we are lucky, all of these tasks are performed before the close of business. I think you get my point.

Don’t get me wrong, an integrated system is not all unicorns and rainbows.  It could have its pitfalls. A user might not be aware of the “behind the scenes” actions that occur just by saving a simple inventory transaction.  A mistake in the transaction could for example, temporarily misstate the enterprise’s financial position. Do not despair, of course that incorrect transaction can be reversed and fixed.  The trick is to fully know and understand the integration points of the main business processes within SAP ERP, to prevent any mishaps. Are you hungry for this type of information?  Then may I introduce you to one of my favorite SAP Education courses; TERP10 SAP ERP Integration of Business Processes.

In nine, chocked fill days, you will define organizational levels, create master data, enter transactions, process reports, AND learn the integration points for the Order to Cash, Procure to Pay, and Plan to Produce business processes.  You will also explore the

integration between fixed asset accounting, internal orders, and enterprise asset management.  But wait, there is more… TERP10 also has a comprehensive unit on SAP Project Systems and a unit that introduces you to SAP Human Capital Management.    On the tenth day of the class, is a certification exam.  What better way to measure your knowledge and your expertise in the area of business process integration than to sit for the certification exam? 

TERP10 is one of most popular courses for project team members beginning to start their SAP implmentation journey.  It is also one of the key courses taught in SAP’s Student Academy Program.


Can’t fit the two weeks into your busy schedule?  SAP also offers a TERP10 e-Learning and a TERP10 e-Academy.

TERP10e is also available to universites via the SAP Student Academy Program.

To view the entire TERP10 course content and the course schedule, click on the following link:

See you in class!

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      Author's profile photo Former Member
      Former Member

      I love the rotary phone analogy!  Thanks for the intergration overview and options for attending TERP010.

      Author's profile photo Thomas Naumann
      Thomas Naumann

      Hi Charla,
      fully agree.

      And the people, which have passed the exam may be motivated to go for the next level;  planning and GATP in SAP SCM 😉

      May speek to you soon again.

      Best regards,

      Author's profile photo Faisal Iqbal
      Faisal Iqbal

      An organizational structure created in HR, controlling the 1) authorizations (who does what?), 2) workflows (the flow of tasks), 3) enterprise portal (employees and managers self service concept) etc could be another good example of Integration.