• Define SAP ERP

For the purpose of making enterprise resource planning (ERP), a German multinational software company is used which is called as SAP. For managing business operations, organizations permit ERP software and usually means to suit modular applications for collecting and integrating data from various aspects of the business. For Erp software, there is only one provider called SAP. There are other providers like Microsoft, Oracle, Epicor, and Infor Orbis.

For the purpose of enterprise management, here is a basic overview of SAP’s modules implementation methods and here it stands against the competitors.

  • SAP’s Enterprise Resource Planning Modules

When neatly integrated ERP software comes into the picture, SAP becomes the prime leader and there are lots of departmental applications work symphonically. SAP offers industry-specific add-on solutions is beyond its basic models. There are lots of modules present in the SAP ERP and the main categories are:

  • Accounting:

Finance (FI)

Investment Management (IM)

Project Systems (PS)

Controlling (CO)

Financial Supply Chain Management (FSCM)

  • Logistics

Material Management (MM)

Sales and Distribution (SD)

Logistics Execution (LO)

Warehouse Management (WM)

Plant Maintenance (PM)

Quality Management (QM)

Production planning (PP)

Environment, Health, and Safety (EH&S)

  • Human Resources

Organization Management (HR-OM)

Payroll (HR-PY)

Training and Event Management (HR-TE)

Learning Solutions (HR-LSO)

Compensation (HR-CM)

Enterprise Compensation (HR-ECM)

Benefits (HR-BN)

Recruitment (HR-PB)

Loan (HR-LN)

Advance Business Application Programming (HR-ABAP)

  • Technology

Cross-Application (CA), includes classification systems and workflow

Basic Components (BC or BASIS)

Programming (ABAP)

Security and Authorizations

  • Other Modules (requiring separate installation)

Business Warehouse (BW)

Business Intelligence (BI)

International Demonstration and Education System (IDES)

Customer Relationship Management (CRM)

Master Data Management (MDM)

Supplier Relationship Management (SRM)

Exchange Infrastructure (XI)

Process Integration (PI)

Global Trade Services (GTS)

Strategic Enterprise Management (SEM)

Corporate Finance Management (CFM)

There are some modules in Finance and Investment Management and can be classified as Receivable or Accounts payable, Investment Support or Investment Orders. There are industry requirements and business operations for finding the modules actually needed. Sales and Distribution, finance, controlling, Human Resources, Material Management are few of the most significant sub-modules in SAP. Organizational needs are the basis for a client to buy the modules requirement. For instance, an SD, FI and MM modules can be bought by a client only without buying HR and CO modules.

  • SAP History

Five-ex employees of IBM developed SAP and it was developed in the year 1972 and is a small software company in Germany with just one client. Systems, Applications, and Products is the full form of SAP. The ultimate goal of its founders is to process the data when a user actually needs it, instead of overnight batches with reference to the earlier software. IBM’s punch-card data storage was changed to make their first product and it stores data on a mechanical basis and needed overnight processing. Imperial Chemical Industries German branch is the client of SAP and for them, they developed a real time payroll and punch-card system in the year 1972.

R/2 was the actual version of SAP’s ERP and named for its real-time architecture and two servers. After sometime it was name was changed to R/3 for three servers called as production server, application server and database server. The latest version of SAP was released in the year 2006, ECC6.0 and in the year 2013 an Enhancement Package (EHP7) was unveiled.

All department of organizations is handled by the ERP system called as SAP. An organizations’ Finance, Human Resource, Controlling, Research and many other departments are handled by SAP. A special industry-specific solution is present in SAP for almost various industries like Pharmaceuticals, manufacturing, Security, Insurance, Treas, Finance, etc.

There are lots of significant modules like SAP, SD, FICO, and HR. Finance and controlling respectively are controlled by Fi and CO. HR controls Human Resource departments and sales are controlled by SD. MM, SD, PS and HR modules are connected with FICO which is a base module.

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