SAP is the short form of Systems, Applications and Products. SAP is not just the name of Earth some of the widest software development organisation but also the name of the software product built by this organisation. SAP AG, the authorized name of the enterprise since it was shaped in Germany, in the first place thought of allowing clients with a tool with which they can interact with a sole master data base for each and every application needed across the company.

The thought of the tool got functional in the process of a financial accounting system referred SAP R/1, the introductory version of SAPs iconic enterprise software. The amended version of this application, SAP R/2, was founded towards the end of 1970s, which was mainframe based business application software. Afterward, SAP AG launched a client -server version of the software named SAP R/3, after the advent of divided customer -server computing.

SAP R/3 Functionality:

SAP applications, developed round their current R/3 system enables R/3 to treat complete performance and management tasks throughout the enterprise. That means, SAP R/3 cater the users with the instrument to handle financial, asset, and cost accounting, production operations and materials, personnel, plants, and archived documents. It runs on Advance Business Application Programming (ABAP), which is a 4th generation programing language. The R/3 system is compatible with various platforms including Windows 2000 and applies the client/server model.

SAP R/3 Modules:

SAP R/3 is made up of whatsoever individual functioning software modules. These modules combine to execute every of the working and management tasks of any organization. Every personalized functioning module deals specified activities on it’s own, but is connected to the others where applicable. The most widely used modules are – Logistics, Accounting and Human Resources.

Logistic Module:

Logistics is the way of completing a process from start to finish on invite e.g. delivering a product at it’s wanted location, on request. Several tasks needed in this process are Sales and Distribution, Production Planning, Materials Management, Plant Maintenance and Quality Management etc among others, every of which are integrated by Logistic module. The individual components of this module and instance of their functions are:

Logistic Module

Sales and Distribution module: Presales support, client enquiry processing, quotation forming, sales order processing, delivery working, billing and sales information system.

Material Management module: Purchasing procedures, warehouse management, inventory, invoicing etc.

Production Planning module: Planning & organising production operation e.g. transport and storage of raw materials, by-products and waste etc.

Plant Maintenance module: Repair of buildings, maintenance of equipment used in the production process, data about machine usage and possible downtime etc.

Quality Management module: Each processes connected to the quality assurance of the product.

Accounting Modules:

This module executes every last financial and accounting actions or in another words this module meets every financial and accounting needs of the organisation. It is self-activating to cater management and reporting of ledger, receivables & payments etc. which in turn enables balance sheets and Profit & Loss (P&L) accounts to be self updated, ceaselessly. Therefore, the elementary reward of this module is that the book reflects the real situation. The different factors of this module are:

Accounting Module Examples

Financial Accounting: Accounting functions example balance sheet, Profit & Loss statements, Compliance with accounting regulations etc.

Controlling: Controls cost as well as corporations objectives, Provides info needed for decision planning and future planning.

Enterprise Controlling: Collates internal info with market data to bring out issues in marketing strategies.

Treasury: Corporate banking, Cash, budget management etc.

Capital Investment Management: Serves finance enterprises in their capital investments and tracking.

Project System: Project Management I, Project budgeting, Project execution/integration, Info system, Operative structures, Project planning etc.

Human Resources Modules

As the words itself specifies, Human Resource Modules leaves a accomplished HR management system, handling fields such as personnel preparation and enlisting, personnel and salary administration, payroll and personnel development.

Initially, SAP executions as well as its preparation were organized on module lines. For instance, in a training class on Logistics, you would read many things about SD such as SD-MD, SD-GF, SD-SLS etc but not much about the rest of the SAP system and how SD fits into it. So, the integration ‘tween modules was completely absent. This utilised to result to that, the results were optimized along the modules, but missed in integration. And Then, to achieve that integration, programmes are now being organized along the process lines such as:

Order to Money (including parts of SD, FI-AR and probably TY as well)
Purchase to Pay (including MM-Purchasing and FI-AP)
Record to Report (FI-GL etc)

With adjustment of process lines alternatively of modules for results, SAP now are moving away from describing their system as a set of modules, and nowadays are applying the term answers. These New Dimension Products can stand exclusively or be integrated with R/3. It’s profits include elimination of duplication, discontinuity and redundancy in information and increases the return on investment made on IT implementations. It delivers quality information designed for the Organization as a completely Faster and cheaper which in turn delivers quality info to produce a quality organisation. These answers are:

Financials
Human Resources
Customer Relationship Management
Supplier Relationship Management
Product Lifecycle Management
Supply Chain Management
Business Intelligence

Conclusion:

SAP is an Corporation Wide Business Solution. This implies that organizations operating SAP can in effect integrate all of its business activities taking on finance, purchasing, sales, human resources etc. This integration allows each business proceedings in an corporation are handy to every last fields of that organisation and there is no duplicate of info in separated systems.