SAP ERP Overview

This SAP overview defines the SAP module and provides details on its structure and functions. Additionally, this article outlines the key benefits of using SAP.

SAP definition

Systems Application and Products (SAP) is a powerful tool that integrates multiple business processes and functions into one complete system.

In today’s world, the business functions of many companies are rarely integrated. Lack of integration between business lines increases the risk of duplication, errors and inconsistencies. The upper right graph shows the traditional organization system, while the lower right graph shows a business with integrated systems.

It is the integration of multiple business processes and functions into a comprehensive system that gives organizations the structure they need to be competitive in today’s world.

The main advantages of using SAP as your ERP system are the following:

• SAP is a powerful tool that integrates multiple business processes and functions into one complete system.
• SAP reduces the lack of integration across business lines, which will increase the risk of duplication, errors, and inconsistencies in data.
• SAP provides a different approach than its competitors in the market. Each piece (module like FI, MM, SD) can work independently from the rest of the software. And the key benefit of using this approach is that companies can implement a single module to suit the needs of the business and have the flexibility to add another module later as their business grows.

SAP is a modular system consisting of individual applications called application modules. Application modules can be grouped together to include a component.

All SAP components link to a central database that connects the various business activities of the company, and this central database is where all company data is stored.

The application modules are where most of the daily tasks are performed. Each application module manages a different business function in SAP, designated by a two-letter code.

SAP implementations include the modules and module tools as follows:

• Financial Accounting (FI)
• Control (CO)
• Fixed Asset Management (AM)
• Project System (PS)
• Sales and Distribution (SD)
• Materials Management (MM)
• Production Planning (PP)
• Quality Management (QM)
• Plant Maintenance (PM)
• Human Resources (HR)
• Enterprise Workflow (WF)
• Industrial Solutions (IS)

Regarding the key benefit of using SAP, the information from SAP is processed in real time, providing updated information as soon as the data is saved in the system. Because the modules connect the business activities of the company in a central database. SAP is known as an integrated system.

SAP Overview

What we have learned from the SAP Roundup article is:

• SAP is made up of individual application modules, each of which covers a different business function.
• SAP application modules link to a central location where data is stored.
• SAP includes table data, master data, and transactional data.
• SAP reports information in different formats at various levels of the company.
• SAP is a fully integrated system that enables real-time functionality across the entire organization.