Summer ˝ Semester 2004



IMSE 525

Finance and Economics Software Applications


Description (from Graduate Announcement 2002-2004, page 136):  This course applies concepts and techniques of financial management on business and engineering systems case studies.  Specifications for some of these systems will be developed utilizing ERP software such as SAP R/3 application development software suite.



1.      Lay firm groundwork in basic financial-management concepts and terminology.

2.      Introduce the SAP R/3 ERP software.

3.      Achieve familiarity with the Financial Accounting (“FI”) module of SAP R/3.

4.      Achieve familiarity with the Controlling (“CO”) module of SAP R/3.

5.      Become acquainted with the other two Financials modules of SAP R/3, Asset Management (“AM”) and Project Systems (“PS”)

6.      Gain hands-on computer-laboratory experience in the use of these modules.


Recommended references:

Brinkmann, Sandra, and Axel Zeilinger.  2000.  SAP R/3 Financial Accounting.  Harlow, United Kingdom:  Pearson Education Limited.

Schicht, Gabriele, and Andrea Schmieden.  2001.  Flying Start with SAP R/3:  A Guide to Get You Up and Running.  Harlow, United Kingdon:  Pearson Education Limited.

Larocca, Danielle.  1999.  Sams Teach Yourself SAP R/3 in 24 Hours.  Indianapolis, Indiana:  Sams Publishing.

Nowak, David, and Quentin Hurst.  2000.  Configuring SAP R/3 FI/CO:  The Essential Resource for Configuring the Financial and Controlling Modules.  Alameda, California:  Sybex, Incorporated.

Bancroft, Nancy H., Henning Seip, and Andrea Sprengel.  1998.  Implementing SAP R/3:  How to Introduce a Large System into a Large Organization, 2nd edition.  Greenwich, Connecticut:  Manning Publications Company.

Buck-Emden, Rüdiger.  2000.  The SAP R/3 System:  An Introduction to ERP and Business Software Technology.  Harlow, England:  Addison-Wesley, an imprint of Pearson Education Limited.

Curran, Thomas A., and Andrew Ladd.  2000.  SAP R/3 Business Blueprint:  Understanding Enterprise Supply Chain Management, 2nd edition.  Upper Saddle River, New Jersey:  Prentice-Hall Incorporated.

O’Leary, Daniel E.  2000.  Enterprise Resource Planning Systems:  Systems, Life Cycle, Electronic Commerce, and Risk.  Cambridge, United Kingdom:  Cambridge University Press.


Course Outline:

1.      Financial groundwork of basic terminology and concepts

2.      Introduction of SAP R/3 (“hands-on”)

3.      The SAP R/3 “FI” module (“hands-on”), including functionality such as:

i)        General Ledger Accounting (“GL”)

ii)       Accounts Payable (“AP”)

iii)     Accounts Receivable (“AR”)

iv)     Asset Accounting

v)      Funds Management

vi)     Special Purpose Ledger

vii)   Travel Management

viii)  Legal Considerations (“LC”)

4.      The SAP R/3 “CO” module (“hands-on), including functionality such as:

i)        Cost Center Accounting (“CCA”)

ii)       Product Cost Controlling (“PC”)

iii)     Activity-Based Costing (“ABC”)

5.      Overview and recapitulation


Grading Administration:

            Laboratory and homework assignments             30%

            Midterm (27 July)                                              35%

            Final examination (submit term paper)                               35%


Statement from Office of the Provost on academic ethics. 


Internet Resources:


If you have not already done so pertinent to a previous course, enroll as a student at the web site  Then enroll as a student in this course using password “IMSE525”.  I urgently recommend vigorous participation in the course via this web site resource.


The university’s Master of Science in Information Systems and Technology laboratory page:

provides very helpful manuals and on-line tutorials.


The web site provides useful introductory information on ERP.


The SAP R/3 “commercial headquarters” web page is: 


The site provides access to a wide variety of “white papers” on SAP usage.


Administrative support on SAP R/3 usage is available from Armen Tumanyan, who works many hours in the Simulation Laboratory. He can be reached by email at or telephone 419-537-6960.