Among the various ERP solutions, SAP R/3 solution has been chosen because SAP system follows global standard processes which include most of business solutions for various industries. The ERP education is limited by learning theory only and they are not sufficient for understanding wide scale of business processes. Real world scenarios with hands on experience approach will be the core aspect of this article. As per real world scenarios, "ChungBuk Motors. Corp." has been created and students are asked to create the organization structure and the procurement process for this virtual enterprise. As a result, students attending this class showed better understanding of overall ERP system comparing to the students attended other ERP classes. The hands-on experience with real-world scenarios proved that it is most practical and efficient solution for educating ERP system.