Overview Of The Different SAP Modules & Solutions
Eli Griffin
December 05, 2008
An ERP system is a real-time business support system that caters to the information needs of an entire enterprise using a single repository of data (a database) and a very sophisticated set of highly-customizable software modules which, together, facilitate decision-making and the actions based on these decisions. This invariably results in highly efficient operations and a resultant competitive advantage. SAP, developed by SAP AG, located in Walldorf, Germany, is one such proprietary ERP system.
The SAP system is organized into several sets of 'solutions' (essentially, modules) that address the information needs of specific areas of any company's operations. Sitting on top of these already-integrated individual modules is the Cross-Application layer, components of which further ensure that these different solution 'talk' to each other in a cohesive manner.
There is a saying, "If you fail to plan, you are actually planning to fail". Therefore, a good starting point for understanding SAP is its Project System which treats every activity within the company as part of some project. Based on actual orders (or perceived demand), this module is used define projects that will fulfill these orders and start tracking them from then on. A typical project would include a mix of several manufacturing activities as well as any related procurement (raw materials as well as bought-out items). Tracking every such project right from inception, through to its completion and beyond (post-project analysis) is aptly handled by this module.
For project activities that relate to manufacturing, the Production Planning module handles the specifics of capacity planning, production scheduling down to the individual tasks on the shop floor. This includes handling data on the availability and deployment of human resources, machinery, tools and fixtures, consumables and energy requirements to name a few.
With streamlined production comes Plant Maintenance which handles preventive maintenance, breakdown maintenance along with the associated down-time of equipment and lost hours of the work-force as well as the time, material and labor required for such maintenance.
The Materials Management module interfaces with Production Planning and Plant Maintenance to ensure a) Timely delivery of materials and b) Reduced cost of inventory. Its scope starts with material requisitions (based on Bills of Material emanating from production plans as well as for unplanned purchases) and tracks them from placing orders to receipt of goods, their receiving inspection (quality control), their being taken into stock and being subsequently issued for production. This module also handles finished-goods inventory.
The Costing module interfaces with every entity that has a money value associated with it. It takes into consideration the various cost-centers and all the associated costs: equipment, material, labor and services. The same holds true for the profit centers. This costing module has a provision for product-based costing (which could fail to handle certain fixed costs accurately) as well as activity-based costing which is considered more scientific and provides for cross-functional apportioning of all the drivers of these costs.
The Sales and Distribution module tracks all transactions from enquiries, requests for proposals/ quotations and pricing to interfacing with the finished-goods inventory (in factory and warehouses) to picking, packing, shipping and delivery.
The Financial Accounting module logs financial transactions in the electronic equivalent of primary books of accounts, maintains the General Ledger and all defined sub-ledgers, consolidates all this into the final books of accounts (essentially, Profit & Loss account and the Balance Sheet), handles tax-related transactions/adjustments and interfaces with book closure. Incidentally, most of this is of a statutory nature and gets implemented with the country-specific options of SAP.
Asset Management is used for tracking assets from the time they are purchased, right through their life-time with regard to their depreciation (and, therefore their current valuation) to the point they are either sold or written off.
The Quality Management module, along with the Project System, actually overlaps all other functions and interfaces with each one of them throughout the life of the company. Quality, they say is never by accident; it's always by design. That is why this module is used to facilitate all activities that build quality into the company's products/services (preventing defects/errors occurring in the first place). This is done by planning (essentially, incorporating preventive measures in the company's work-flow), executing these quality plans and conducting periodic inspections to detect deviations, if any. Critical to the company's image and credibility in the outside world, are activities that lead to the various applicable certifications obtaining which is also handled effectively by this module
This was a simplistic view of a very comprehensive application called SAP.
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 SAP system is organized into several sets of 'solutions' (essentially, modules) that address the information needs of specific areas of any company's operations. Sitting on top of these already-integrated individual modules is the Cross-Application layer, components of which further ensure that these different solution 'talk' to each other in a cohesive manner.
There is a saying, "If you fail to plan, you are actually planning to fail". Therefore, a good starting point for understanding SAP is its Project System which treats every activity within the company as part of some project. Based on actual orders (or perceived demand), this module is used define projects that will fulfill these orders and start tracking them from then on. A typical project would include a mix of several manufacturing activities as well as any related procurement (raw materials as well as bought-out items). Tracking every such project right from inception, through to its completion and beyond (post-project analysis) is aptly handled by this module.
For project activities that relate to manufacturing, the Production Planning module handles the specifics of capacity planning, production scheduling down to the individual tasks on the shop floor. This includes handling data on the availability and deployment of human resources, machinery, tools and fixtures, consumables and energy requirements to name a few.
With streamlined production comes Plant Maintenance which handles preventive maintenance, breakdown maintenance along with the associated down-time of equipment and lost hours of the work-force as well as the time, material and labor required for such maintenance.
The Materials Management module interfaces with Production Planning and Plant Maintenance to ensure a) Timely delivery of materials and b) Reduced cost of inventory. Its scope starts with material requisitions (based on Bills of Material emanating from production plans as well as for unplanned purchases) and tracks them from placing orders to receipt of goods, their receiving inspection (quality control), their being taken into stock and being subsequently issued for production. This module also handles finished-goods inventory.
The Costing module interfaces with every entity that has a money value associated with it. It takes into consideration the various cost-centers and all the associated costs: equipment, material, labor and services. The same holds true for the profit centers. This costing module has a provision for product-based costing (which could fail to handle certain fixed costs accurately) as well as activity-based costing which is considered more scientific and provides for cross-functional apportioning of all the drivers of these costs.
The Sales and Distribution module tracks all transactions from enquiries, requests for proposals/ quotations and pricing to interfacing with the finished-goods inventory (in factory and warehouses) to picking, packing, shipping and delivery.
The Financial Accounting module logs financial transactions in the electronic equivalent of primary books of accounts, maintains the General Ledger and all defined sub-ledgers, consolidates all this into the final books of accounts (essentially, Profit & Loss account and the Balance Sheet), handles tax-related transactions/adjustments and interfaces with book closure. Incidentally, most of this is of a statutory nature and gets implemented with the country-specific options of SAP.
Asset Management is used for tracking assets from the time they are purchased, right through their life-time with regard to their depreciation (and, therefore their current valuation) to the point they are either sold or written off.
The Quality Management module, along with the Project System, actually overlaps all other functions and interfaces with each one of them throughout the life of the company. Quality, they say is never by accident; it's always by design. That is why this module is used to facilitate all activities that build quality into the company's products/services (preventing defects/errors occurring in the first place). This is done by planning (essentially, incorporating preventive measures in the company's work-flow), executing these quality plans and conducting periodic inspections to detect deviations, if any. Critical to the company's image and credibility in the outside world, are activities that lead to the various applicable certifications obtaining which is also handled effectively by this module
This was a simplistic view of a very comprehensive application called SAP.
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.
Print
Email
