BM2013

Laboratory Exercise
SAP Business One as an ERP System and its Basic
Navigation
Objectives:
At the end of the exercise, the students should be able to:
▪ Determine the theoretical background of SAP Business One as an enterprise resource planning (ERP)
system;
▪ Log in to SAP Business One; and
▪ Navigate the system using the menu bar and other navigation tools.

Materials/Equipment:
▪ SAP Business One software
▪ Microsoft Word

Theoretical Background:

WHAT IS AN INFORMATION SYSTEM?

An information system is a collection of hardware, software, data, people, and procedures designed to
support data-intensive applications and generate information that supports the day-to-day, short-range, and
long-range activities of users in an organization.

CATEGORIES OF INFORMATION SYSTEMS

1. Office Information Systems (OIS) - Enhance workflow and facilitate communications among
employees
2. Transaction Processing Systems (TPS) - Capture and process data generated during an organization’s
day-to-day transactions
3. Management Information Systems (MIS) - Generate accurate, timely, and organized information to
help managers and other users make decisions, solve problems, supervise activities, and track
progress.
4. Decision Support Systems (DSS) - Help users reach a decision when a decision-making situation arises.
5. Expert Systems (ES) - Capture and store the knowledge of human experts and then imitate human
reasoning and decision-making processes for those who have less expertise.

THE EVOLUTION OF INFORMATION SYSTEMS

1. The Manual Process Model

The manual process model is the oldest and most traditional form of accounting system. Manual systems
constitute the physical events, resources, and personnel that characterize many business processes.
Traditionally, this model also includes the physical task of record keeping. Nowadays, manual records are
rarely used in practices.

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2. The Flat File Model

The flat file approach is most often associated with so-called legacy systems. The flat file model describes
an environment in which individual data files are not related to other files. End users in this environment
own their data files rather than share them with other users.

Data processing is thus performed by standalone applications rather than integrated systems. When
multiple users need the same data for different purposes, they must obtain separate data sets structured
to their specific needs. This results in data redundancy, which contributes to three (3) significant problems
in the flat file environment: data storage, data updating, and currency of information.

3. The Database Model

An organization can overcome the problems associated with flat files by implementing the database model
to data management. Access to the data resource is controlled by a database management system
(DBMS). The DBMS is a special software system that is programmed to know which data elements each
user is authorized to access. Through data sharing, the following traditional problems associated with the
flat file approach may be overcome.

Flat file and early database systems are called traditional systems. Within this context, the term
‘traditional” means that the organization’s information systems applications (its programs) function
independently of each other rather than as an integrated whole. These models were inflexible and did not
permit the degree of data sharing that is found in modern database systems.

True integration, however, would not be possible until the arrival of the relational database model. This
flexible database approach permits the design of integrated systems applications capable of supporting
the information needs of multiple users from a common set of integrated tables.

4. The REA Model

REA is an accounting framework for modeling an organization’s critical Resources, Events, and Agents
(REA) and the relationship between them. Once specified, both accounting and non-accounting data about
these phenomena can be identified, captured, and stored in a relational database. From this repository,
user views can be constructed that meet the needs of all users in the organization. The availability of

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multiple views allows flexible use of transaction data and permits the development of accounting
information systems that promote integration.
REA is a conceptual model, not a physical system. The most notable application of REA philosophy is seen
in the proliferation of Enterprise Resource Planning (ERP) systems.

5. The ERP Model

Enterprise Resource Planning (ERP) is an information system model that enables an organization to
automate and integrate its key business processes. It is a business management software—usually a suite
of integrated applications—that a company can use to store and manage data from every stage of
business, including:
1. Product planning, cost, and development
2. Manufacturing
3. Marketing and sales
4. Inventory management
5. Shipping and payment
ERP provides an integrated real-time view of core business processes, using common databases
maintained by a database management system. ERP systems track business resources—cash, raw
materials, production capacity—and the status of business commitments: orders, purchase orders, and
payroll. The applications that make up the system share data across the various departments
(manufacturing, purchasing, sales, accounting, etc.) that entered the data. ERP facilitates information flow
between all business functions and manages connections to outside stakeholders.

WHAT IS ENTERPRISE RESOURCE PLANNING (ERP)?

ERP is a business management software that allows an organization to use a system of integrated applications
to manage the business. It aims to serve as a backbone for your whole business. ERP software integrates all
facets of an operation, including product planning, development, manufacturing processes, sales, and
marketing.

The leader in ERP market share, and the one that invented the market to an extent, is the German company
SAP AG with its R/3 software. R/3 was designed to allow a business to view its entire business operation as a
single-integrated process in which data entered into any single application in the system would simultaneously
be registered in every other application. Other big players include PeopleSoft, Inc., Oracle Corp., Baan Co. NV,
and J.D. Edwards & Co.

BRIEF HISTORY OF SAP

SAP was founded in June 1972 as Systemanalyse und Programmentwicklung (System Analysis and Program
Development) by five (5) former IBM engineers in Mannheim, Baden-Württemberg:
1. DietmarHopp
2. Klaus Tschira
3. Hans-Werner Hector
4. HassoPlattner, and
5. Claus Wellenreuther

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The acronym was later changed to stand for Systeme, Anwendungen und Produkte in der Datenverarbeitung
(Systems, Applications and Products in Data Processing).

PRODUCTS

SAP's products focus on ERP. Its main product is the SAP ERP, which has a current version called SAP ERP 6.0
and is part of the SAP Business Suite. Its previous name was SAP R/3. The "R" stood for real-time – even though
it is not a real-time solution. The number "3" was related to the three-tier architecture: database, application
server, and client (SAPgui). R/2, which ran on a mainframe architecture, was the predecessor of R/3.

SAP ERP Central Component (ECC) is one of the five (5) enterprise applications in SAP's Business Suite. The
other four (4) applications are:

• Customer Relationship Management (CRM) – helps companies acquire and retain customers, and
gain marketing and customer insights
• Product Lifecycle Management (PLM) – helps manufacturers with product-related information
• Supply Chain Management (SCM) – helps companies with the process of resourcing their
manufacturing and service processes
• Supplier Relationship Management (SRM) – enables companies to procure from suppliers

While its original products were typically used by Fortune 500 companies, SAP now actively targets small and
medium-sized enterprises (SME) with its SAP Business One and SAP Business All-in-One.

SAP BUSINESS ONE AS AN ERP SYSTEM

SAP Business One is a business management solution designed for small and midsize businesses. It gives you
on-demand access to real-time information through one (1) single system. The application is divided into a
number of modules, each covering a different business function. It has a user-friendly interface that serves as
your central ERP access point, with standard interfaces to internal and external data sources, handheld
computers, and other analysis tools.

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THE TECHNOLOGY OF SAP BUSINESS ONE

Architecture
SAP Business One is based on a two-tier client/server architecture. The server runs a database server as a
central data repository (Microsoft SQL 2000 SP 3, IBM DB2 Universal Database Express Edition 8.1 SP3, or
Sybase Adaptive Server Enterprise 12.5.1). Most of the applications reside on the client (fat client). This means
that processing is carried out locally and is largely independent of server performance.

Interfaces
SAP offers a Software Development Kit (SDK) for SAP Business One. You can use this kit to add your own
functions programmed in Visual Basic (VB), C/C++, and Java. The SDK runs either on the server or on the client
depending on its purpose. An integration toolkit provides an interface for converting data from SAP Business
One to XML, based on the SOAP 1.1 protocol, and vice versa.

The SDK consists of the following:

• Data Interface Server (DI-Server);
• Data Interface Application Programming Interface (DI API); and
• User Interface Application Programming Interface (UI API).

LOG IN TO SAP BUSINESS ONE:

1. Open Microsoft Word. Then, name the file using the following format: SURNAME _AIS_SBOExe1 (e.g.
SANTILLAN _ AIS_SBOExe1).
2. Open any browser, then enter the URL provided by your instructor
3. Select the assigned server and the company that will be provided by your instructor.
4. Log-in using the user ID and password provided depending on the branch assigned to you. Each student
will be given a unique branch assignment.
5. Capture the Welcome page. Below is the image, label it as WELCOME PAGE.

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WELCOME PAGE
6. Select the assigned default branch. Click Select as Default.
7. Close all the pop-up windows.

MENU BAR AND TOOLBAR

• Menu Bar – displays at the top of the screen. The menu bar contains the Windows standard menu (File,
Edit, Window, Help) as well generic SAP Busines One functions.
• Toolbar – displays under the menu bar. The toolbar is a collection of icon buttons that grant easy access
to commonly used functions. The functions represented by the button are also available in the menu bar.

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8. Since you are already logged in, capture the menu bar and toolbar in the uppermost portion of the window.
Then, paste it with a label on your Word file.

MENU BAR AND TOOLBAR

MODULES MENU
- Navigation in SAP Business One is done using the Modules menu. It arranges the functions of the
individual applications in a tree structure
- The modules menu contains a list of all modules with their related options.
- The menu options are arranged in the same order as the menus in the main menu. It cannot be
modified and may be inactive for unauthorized users.

9. Capture the Modules menu.

MODULE MENU

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10. Save the word file and place it in the assigned Dropbox.

Rubric for grading:

CRITERIA PERFORMANCE INDICATORS POINTS
Neatness and
Captured images are clear and well-organized. 20
Organization
Titles, Labels, and
The images and the file are properly labeled and named, respectively. 10
Headings
TOTAL 30

Reference
Fasttrack IT Academy. (2019). Quick guide to accounting information systems. Makati City: Author.

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