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2. AFCONS chose SAP/R3 and selected a few modules for implementation.

Explain how these


areas are critical for a company in the infrastructure sector.
Answer:
AFCONS chose few modules of SAP/R3 for implementation. Explaining criticality of each area for a
company in the infrastructure sector as follows:

a. FI/CO (Finance and Controlling)


Every company must care about and manage money to survive. Therefore, most enterprises
start their SAP implementation with SAP Financial Accounting (FI) and SAP Controlling (CO), the
fundamental bookkeeping modules. SAP financial modules give enterprises the whole array of
accounting functionality with extensive reporting support, especially with the controlling
module. An important aspect of the financial accounting system is the real-time generation of
the current balance. The needs of globalization are addressed with support for multiple
currencies, units, and languages, as well as national tax and legal regulations (R /3 can address
US-GAAP, German HGB, IAS, and other accounting standards).

b. MM (Material Management)
SAP Material Management (MM) comprises all activities related with material acquisitions
(purchasing) and control (inventory, warehousing). The warehouse management (LE-WM)
module manages complex warehouse structures, storage areas, and transportation routes.
Stock is always controlled because every material movement is immediately recorded.

c. SD (Sales and Distribution)


SD covers the complete sales cycle from ordering and quotations over shipping and
transportation to billing and customer payment processing. SD supports EDI, fax, mail, and so
on. Other useful features include immediate product availability and delivery schedule
information by integration with MM and PP. Due to seamless integration with FI and CO (and
connections with bank accounts), receivables and revenues are immediately updated.

d. Project Systems
The R/3 Plant Maintenance (PM) application component provides you with a comprehensive
software solution for all maintenance activities that are performed within a company. The
uniform, graphical user interface is particularly user-friendly and quickly meets with acceptance,
thanks to the numerous possibilities that are available for tailoring it to meet individual
requirements. The data and functions of all maintenance procedures performed within a
company can be fully interconnected.

e. Equipment Tools and Management(ETM)


Equipment and Tools Management (ETM) deals with issues that secure an optimal process flow
in enterprise areas of (construction) companies or equipment rental companies, and so on, in
aspects such as planning, processing, settlement and evaluation of resources (materials and
equipment).

f. Business Intelligence(BI) and Business Warehouse(BM)


The Business Intelligence application area gathers the business application components related
to knowledge and corporate finance management to support decision-making processes with
the Business Information Warehouse (BW) as the core component.