What is SAP ?

What is SAP?

SAP stands for System application & product, Is the name of the company as well as the software itself.

SAP is the ERP (Enterprise Resource Planning) system that aims to integrate all the different modules in the company.As well as we can say it's a 'Centralized system'.

SAP is well-known for its Enterprise Resource Management (ERM) and data management programs.

Before SAP comes in the picture we use Decentralized system.

Let's look at Decentralized system first.

Let's look at the same business process for Centralized System.
In this Case, all departments update a Central Information System.

Key benefits of the centralized system are:

• It Eliminates the duplication, discontinuity, and redundancy in data.
• Provides information across departments in real time.
• Increases productivity, better inventory management, promotes quality, reduced material cost, effective human resources management, reduced overheads boosts profits.
• Better customer interaction and increased throughput. It also improves customer service.
• SAP Software is a centralized enterprise management system also known as Enterprise Resource Planning.

SAP Modules:

SAP Financial Accounting (FI)

SAP FI module as the term suggests deals in managing financial transactions within enterprises. This financial accounting module helps employees to manage data involved in any financial and business transactions in a unified system.

SAP Controlling (CO)

SAP CO module is another important SAP modules offered to enterprises. The controlling module supports in the process works of planning, reporting and monitoring operations of businesses. It involves methods to view and organize costs that are required for financial reporting. The controlling module enables one to plan, track, perform and report about costs.

SAP Sales and Distribution (SD)

SAP SD modules deal in managing all transactions ranging from inquiries, proposals, quotations, pricing and more. The sales and distribution module helps greatly in inventory control and management. SAP SD module consists of master data, system configuration, and transactions.

SAP Production Planning (PP)

SAP PP module is another important module that includes software designed specifically for production planning and management. This module also consists of master data, system configuration and transactions in order to accomplish plan procedure for production. SAP PP module collaborate with master data, sales, and operations planning, distribution resource planning, material requirements planning, Kanban, product cost planning and so on while working towards production management in enterprises.

SAP Materials Management (MM)

SAP MM module as the term suggests manages materials required, processed and produced in enterprises. Different types of procurement processes are managed with this system. Some of the popular sub-components in SAP MM module are vendor master data, consumption-based planning, purchasing, inventory management, invoice verification and so on.

SAP Quality Management (QM)

SAP QM module helps in the management of quality in productions across processes in an organization. This quality management module helps an organization to accelerate their business by adopting a structured and functional way of managing quality in different processes. SAP QM module collaborates in procurement and sales, production, planning, inspection, notification, control, audit management and so on.

SAP Human Capital Management (HCM)

SAP HCM module enhances the work process and data management within the HR department of enterprises. Right from hiring a person to evaluating one’s performance, managing promotions, compensations, handling payroll and other related activities of an HR is processed using this module. The task of managing the details and task flow of the most important resource i.e. human resource is managed using this SAP ERP HCM module.

SAP Advanced Business Application Programming (ABAP)

ABAP is one of the many application-specific fourth-generation languages (4GLs) first developed in the 1980s. It was originally the report language for SAP R/2, a platform that enabled large corporations to build mainframe business applications for materials management and financial and management accounting.ABAP establish integration between independent software.

SAP Basis

SAP Basis is the technical foundation that enables SAP applications to function. It consists of middleware programs and tools that support the interoperability and portability of SAP applications across systems and databases.

SAP Basis is essentially the system administration platform for SAP environments from SAP R/3 through SAP S/4HANA. Its purpose is to make sure that all SAP systems in the environment run smoothly and consistently.

SAP Warehouse Management (WM)

Definition and mapping of the physical warehousing structure in the system.

Processing goods movements like – receipts, issues, and stock transfers.

Maintain up to date stock inventories in the Warehousing complex at storage bin level

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