SAP Modules & Solutions: Enhances Efficiency of Organisations
Eli Griffin
November 27, 2008
SAP is the short form of Systems, Applications and Products. SAP is not only the name of world´s one of the largest software development company but also the name of the software product developed by this company. SAP AG, the authorized name of the company since it was formed in Germany, originally thought of providing customers with a tool with which they can interact with a sole master database for each and every application necessary across the organisation.
The idea of the tool became practical in the form of a financial accounting system named SAP R/1, the first version of SAP´s iconic enterprise software. The improved version of this application, SAP R/2, was launched towards the end of 1970s, which was mainframe based business application software. Later on, SAP AG launched a client-server version of the software called SAP R/3, after the advent of distributed client-server computing.
SAP R/3 Functionality:
SAP applications, built around their latest R/3 system enables R/3 to handle complete operation and management tasks throughout the organisation. That means, SAP R/3 provide the users with the tool to manage financial, asset, and cost accounting, production operations and materials, personnel, plants, and archived documents. It runs on Advance Business Application Programming (ABAP), which is a fourth generation programming language. The R/3 system is compatible with several platforms including Windows 2000 and uses the client/server model.
SAP R/3 Modules:
SAP R/3 is made up of several individual functional software modules. These modules combine to execute all the operational and management tasks of any organisation. Each individual functional module handles specific activities on its own, but is linked to the others where applicable. The most widely used modules are - Logistics, Accounting and Human Resources.
Logistic Module:
Logistics is the method of completing a process from start to finish on request e.g. delivering a product at its desired location, on request. Various tasks involved in this process are Sales and Distribution, Production Planning, Materials Management, Plant Maintenance and Quality Management etc among others, all of which are integrated by Logistic module. The various components of this module and example of their functions are:
Logistic Module
Sales and Distribution module: Presales support, customer enquiry processing, quotation processing, sales order processing, delivery processing, billing and sales information system.
Material Management module: Purchasing operations, warehouse management, inventory, invoicing etc.
Production Planning module: Planning & organizing production process e.g. transport and storage of raw materials, by-products and waste etc.
Plant Maintenance module: Repair of buildings, maintenance of equipment used in the production process, information about machine usage and possible downtime etc.
Quality Management module: All processes related to the quality assurance of the product.
Accounting Modules:
This module performs all financial and accounting activities or in other words this module meets all financial and accounting needs of the organisation. It is automated to provide management and reporting of ledger, receivables & payments etc. which in turn enables balance sheets and Profit & Loss (P&L) accounts to be self updated, continuously. Therefore, the basic advantage of this module is that the book reflects the real situation. The various components of this module are:
Accounting Module Examples
Financial Accounting: Accounting functions such as balance sheet, Profit & Loss statements, Compliance with accounting regulations etc.
Controlling: Controls cost as well as company´s objectives, Provides information necessary for decision making and future planning.
Enterprise Controlling: Collates internal information with market data to bring out issues in marketing strategies.
Treasury: Corporate banking, Cash, budget management etc.
Capital Investment Management: Assists finance organizations in their capital investments and tracking.
Project System: Project Management I, Project budgeting, Project execution/integration, Information system, Operative structures, Project planning etc.
Human Resources Modules
As the words itself defines, Human Resource Modules provides a complete HR management system, covering areas such as personnel planning and recruitment, personnel and salary administration, payroll and personnel development.
Initially, SAP implementations as well as its training were organized along module lines. For example, in a training course on Logistics, you would learn many things about SD such as SD-MD, SD-GF, SD-SLS etc but not much about the rest of the SAP system and how SD fits into it. So, the integration between modules was totally absent. This used to result in that, the solutions were optimized along the modules, but lacked in integration. So, to achieve that integration, programmes are now being organized along the process lines such as:
Order to Cash (including parts of SD, FI-AR and probably TY as well)
Purchase to Pay (including MM-Purchasing and FI-AP)
Record to Report (FI-GL etc)
With adaptation of process lines instead of modules for solutions, SAP now are moving away from describing their system as a set of modules, and now are using the term ´solutions´. These New Dimension Products can stand alone or be integrated with R/3. Its benefits include elimination of duplication, discontinuity and redundancy in data and increases the return on investment made on IT implementations. It delivers quality information designed for the Enterprise as a whole Faster and cheaper which in turn delivers quality information to produce a quality enterprise. These solutions are:
Financials
Human Resources
Customer Relationship Management
Supplier Relationship Management
Product Lifecycle Management
Supply Chain Management
Business Intelligence
Conclusion:
SAP is an Enterprise Wide Business Solution. This means that organizations running SAP can effectively integrate all of its business activities including finance, purchasing, sales, human resources etc. This integration enables all business transactions in an organisation are accessible to all areas of that organisation and there is no duplication of data in separate systems.
Eli Griffin is a certified SAP consultant and is the founder of The Ultimate SAP Course.
Learn more about SAP and claim your own exclusive SAP home study course with CBT & certification materials at UltimateSAP - sap help.
Download your free sap software at the official site now.
If you are looking high paying SAP Jobs? Visit UltimateSAP for the most complete and thorough sap training software system in the market today.
Former siemens SAP consultant reveals the Goldmine of SAP materials previously only available to SAP insiders. This sap training CBT system will teach you everything you need to know from sap r/3 to BASIS and ABAP.
Do you want to know what is sap and how it can improve your business process? Then visit UltimateSAP for the full training system on every SAP module including sap abap, R/3, DB, BASIS and more...
Here is what is covered:
SAP Manuals
Jobs In SAP
SAP BW
ERP SAP
SAP Training Courses
SAP R/3
Learn the secrets of the sap implementation with UltimateSAP.com today.
The idea of the tool became practical in the form of a financial accounting system named SAP R/1, the first version of SAP´s iconic enterprise software. The improved version of this application, SAP R/2, was launched towards the end of 1970s, which was mainframe based business application software. Later on, SAP AG launched a client-server version of the software called SAP R/3, after the advent of distributed client-server computing.
SAP R/3 Functionality:
SAP applications, built around their latest R/3 system enables R/3 to handle complete operation and management tasks throughout the organisation. That means, SAP R/3 provide the users with the tool to manage financial, asset, and cost accounting, production operations and materials, personnel, plants, and archived documents. It runs on Advance Business Application Programming (ABAP), which is a fourth generation programming language. The R/3 system is compatible with several platforms including Windows 2000 and uses the client/server model.
SAP R/3 Modules:
SAP R/3 is made up of several individual functional software modules. These modules combine to execute all the operational and management tasks of any organisation. Each individual functional module handles specific activities on its own, but is linked to the others where applicable. The most widely used modules are - Logistics, Accounting and Human Resources.
Logistic Module:
Logistics is the method of completing a process from start to finish on request e.g. delivering a product at its desired location, on request. Various tasks involved in this process are Sales and Distribution, Production Planning, Materials Management, Plant Maintenance and Quality Management etc among others, all of which are integrated by Logistic module. The various components of this module and example of their functions are:
Logistic Module
Sales and Distribution module: Presales support, customer enquiry processing, quotation processing, sales order processing, delivery processing, billing and sales information system.
Material Management module: Purchasing operations, warehouse management, inventory, invoicing etc.
Production Planning module: Planning & organizing production process e.g. transport and storage of raw materials, by-products and waste etc.
Plant Maintenance module: Repair of buildings, maintenance of equipment used in the production process, information about machine usage and possible downtime etc.
Quality Management module: All processes related to the quality assurance of the product.
Accounting Modules:
This module performs all financial and accounting activities or in other words this module meets all financial and accounting needs of the organisation. It is automated to provide management and reporting of ledger, receivables & payments etc. which in turn enables balance sheets and Profit & Loss (P&L) accounts to be self updated, continuously. Therefore, the basic advantage of this module is that the book reflects the real situation. The various components of this module are:
Accounting Module Examples
Financial Accounting: Accounting functions such as balance sheet, Profit & Loss statements, Compliance with accounting regulations etc.
Controlling: Controls cost as well as company´s objectives, Provides information necessary for decision making and future planning.
Enterprise Controlling: Collates internal information with market data to bring out issues in marketing strategies.
Treasury: Corporate banking, Cash, budget management etc.
Capital Investment Management: Assists finance organizations in their capital investments and tracking.
Project System: Project Management I, Project budgeting, Project execution/integration, Information system, Operative structures, Project planning etc.
Human Resources Modules
As the words itself defines, Human Resource Modules provides a complete HR management system, covering areas such as personnel planning and recruitment, personnel and salary administration, payroll and personnel development.
Initially, SAP implementations as well as its training were organized along module lines. For example, in a training course on Logistics, you would learn many things about SD such as SD-MD, SD-GF, SD-SLS etc but not much about the rest of the SAP system and how SD fits into it. So, the integration between modules was totally absent. This used to result in that, the solutions were optimized along the modules, but lacked in integration. So, to achieve that integration, programmes are now being organized along the process lines such as:
Order to Cash (including parts of SD, FI-AR and probably TY as well)
Purchase to Pay (including MM-Purchasing and FI-AP)
Record to Report (FI-GL etc)
With adaptation of process lines instead of modules for solutions, SAP now are moving away from describing their system as a set of modules, and now are using the term ´solutions´. These New Dimension Products can stand alone or be integrated with R/3. Its benefits include elimination of duplication, discontinuity and redundancy in data and increases the return on investment made on IT implementations. It delivers quality information designed for the Enterprise as a whole Faster and cheaper which in turn delivers quality information to produce a quality enterprise. These solutions are:
Financials
Human Resources
Customer Relationship Management
Supplier Relationship Management
Product Lifecycle Management
Supply Chain Management
Business Intelligence
Conclusion:
SAP is an Enterprise Wide Business Solution. This means that organizations running SAP can effectively integrate all of its business activities including finance, purchasing, sales, human resources etc. This integration enables all business transactions in an organisation are accessible to all areas of that organisation and there is no duplication of data in separate systems.
Eli Griffin is a certified SAP consultant and is the founder of The Ultimate SAP Course.
Learn more about SAP and claim your own exclusive SAP home study course with CBT & certification materials at UltimateSAP - sap help.
Download your free sap software at the official site now.
If you are looking high paying SAP Jobs? Visit UltimateSAP for the most complete and thorough sap training software system in the market today.
Former siemens SAP consultant reveals the Goldmine of SAP materials previously only available to SAP insiders. This sap training CBT system will teach you everything you need to know from sap r/3 to BASIS and ABAP.
Do you want to know what is sap and how it can improve your business process? Then visit UltimateSAP for the full training system on every SAP module including sap abap, R/3, DB, BASIS and more...
Here is what is covered:
SAP Manuals
Jobs In SAP
SAP BW
ERP SAP
SAP Training Courses
SAP R/3
Learn the secrets of the sap implementation with UltimateSAP.com today.