1 Introduction to Business Processes 1 The Functional Organizational Structure 2 Business Processes 4 Global Bike Incorporated (GBI) 15 How to use This Book 16 2 Introduction to Enterprise Systems 23 Enterprise Systems 23 Data in an Enterprise System 29 Reporting 37 3 Introduction to Accounting 49 Organizational Data 51 Master Data 52 Key Concepts 58 Processes 61 Reporting 72 4 The Procurement Process 83 Organizational Data 84 Master Data 89 Key Concepts 95 Process 102 Reporting 119 5 The Fulfillment Process 127 Organizational Data 128 Master Data 139 Process 145 Credit Management Process 167 Reporting 170 6 The Production Process 179 Master Data 182 Process 196 Reporting 215 7 Inventory and Warehouse Management Processes 221 Inventory Management 222 Organizational Data in Warehouse Management 234 Master Data in Warehouse Management 239 Processes in Warehouse Management 242 Reporting 257 8 The Material Planning Process 269 Master Data 271 Process 285 Reporting 304 9 Process Integration 315 Procurement, Fulfi llment, and IWM Processes 318 Procurement, Fulfi llment, Production, and IWM Processes 332 Index 349
Simha R. Magal, Ph.D., is professor of management(MIS) and director, ERP initiative, in the Seidman College ofBusiness at Grand Valley State University. He received hisdoctorate from the University of Georgia. His primary researchinterests include e-business and enterprise systems. Dr.Magal s articles have appeared in such publications as MISQuarterly, Journal of MIS, and Information and Management, amongothers, and he has served on the editorial boards of severaljournals. Dr. Magal has taught courses related to businessprocesses and enterprise systems that utilize SAP for more than adecade. He is an SAP-certified associate consultant and a TERP10academy instructor. Jeffrey Word, Ph.D., is vice president of productstrategy at SAP AG. He is responsible for defining SAP's futureproduct strategy and for fostering product innovation within SAP.Dr. Word has worked for several Global 1000 companies in thehigh-tech industry for nearly 20 years, specializing in businessconsulting and IT strategy. At SAP, he has driven the evolution ofthe company s enterprise technology strategy, with a specialfocus on corporate process improvement initiatives andservices-based IT architecture design. Dr. Word earned his Ph.D. ininformation systems at Manchester Business School in England.