SAP is at the centre of today’s technology revolution. The market leader in enterprise application software, SAP helps organizations fight the damaging effects of complexity, generate new opportunities for innovation and growth, and stay ahead of the competition.
What is SAP ERP?
SAP is a German multinational software company known for making enterprise resource planning (ERP) software. ERP software allows organizations to manage business operations, and usually refers to suite of modular applications that collect and integrate data from different aspects of the business. While it is the sole focus of this article, SAP is just one provider of ERP software. Others include: Oracle, Microsoft, Infor Orbis, and Epicor.
Below is a general overview of SAP's modules for enterprise management, implementation methods, and where it stands amongst its competitors.
History of SAP
The product of five ex-IBM employees, SAP started in 1972 as a small software company in Germany with just one customer. The company's name stands for Systems, Applications & Products. Its founders had a vision of producing software that could process data when a user wanted it, rather than in overnight batches as earlier software did. Their first product was a modification of IBM's punch-card data storage, which stored data mechanically and required overnight processing. For their client, the German branch of Imperial Chemical Industries, SAP developed a real-time payroll and punch-card system in 197 SAP's ERP started as R/2, named for its real-time architecture and two servers. In later years it was called R/3, for three servers: the application server, production server, and database server. In 2006, SAP released the latest version, ECC 6.0, and in 2013 an Enhancement Package (EHP7) was released.
SAP's Enterprise Resource Planning Modules SAP is a leader when it comes to neatly integrated ERP software; its various departmental applications work symphonically. Beyond its basic models, SAP provides industry-specific add-on solutions. The SAP ERP suite contains an enormous number of modules, and the main categories are:
Other Modules (requiring separate installation):
Some of these modules, particularly those in Finance and Investment Management, can be broken down into sub-categories of modules, such as Accounts Payable or Receivable, Investment Orders, or Investment Support. Specific business operations and industry requirements will determine which modules are needed.
Finance, Controlling, Sales and Distribution, Material Management, and Human Resources are some of the most important sub-modules in SAP. Depending upon the organization needs, a client can buy whatever modules needed. For example, a client can buy FI, SD and MM modules only without buying CO and HR modules.
As I mentioned earlier, SAP is an ERP system that handles almost all department of an organizations. SAP handles an organizations'sFinance , Controlling, Human Resource, Sales, Distribution, Material management, Warehouse, Production, Security, Research and many other departments. Not just that but SAP has a special industry specific solutions for almost all industries such as manufacturing, Pharmaceuticals, Insurance, Security, Finance, Treasury etc.
SAP FICO, SD and HR are most important modules. FI and CO modules controls finance and controlling respectively. SD controls sales and HR controls Human Resource departments. FICO is a base module which gets highly connected to SD, MM, HR and PS modules.
Let's just talk about some basic SAP modules those are useful for all domains.
Finance (FI), Controlling (CO), Sales & Distribution (SD), Material Management (MM) and Human resources (HR) are some of the most important sub modules in SAP. Depending upon the organization needs, a client can buy whatever modules needed. For example, a client can buy FI, SD and MM modules only without buying CO and HR modules.
Key ERP Modules in Detail
Finance is the base module. The vital areas it covers includes:
Taken together, SAP FI and CO are known as FICO and are the most important and popular of the SAP modules.
Controlling is a kind of sister module for FI, used for internal reporting, documenting actual events, and informing management decisions by coordinating events with actual and plan data. It includes:
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