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What is SAP Software System?

What is SAP ERP?


SAP is a German multinational software company known for making enterprise resource planning
(ERP) software. ERP software allows organizations to
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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 1972.
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 Master Data Management 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:

Accounting:
Finance (FI)
Investment Management (IM)
Project Systems (PS)
Controlling (CO)
Enterprise Controlling (EC)

Financial Supply Chain Management (FSCM)

Logistics:
Material Management (MM)
Sales and Distribution (SD)
Logistics Execution (LO)
Warehouse Management (WM)
Plant Maintenance (PM)
Customer Service (CS)
Fleet Management (FM)
Quality Management (QM)
Production planning (PP)
Environment, Health, and Safety (EH&S)
Human Resources:
Organization Management (HR-OM)
Personnel Management (HR-PM)
Personnel Administration (HR-PA)
Personnel Development (HR-PD)
Personal Time Management (HR-PT)
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)
Knowledge Warehouse (KW)
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)
Business Consolidation and Sourcing (BCS)

Business Planning and Consolidation (BPC)


Corporate Finance Management (CFM)
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.
SAP Modules
As I mentioned earlier, SAP is an ERP system that handles almost all department of an
organizations. SAP handles an organizations's Finance , 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.
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