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