SAP provides a wide array of functional and technical software modules (each containing several sub-modules) that integrate to form a robust ERP system capable of managing multi-functional business transactions and generating reports.
What is SAP?
SAP ranks among the top global providers of ERP software. Its corporate headquarters are in Germany, with numerous offices worldwide, including in the United States. While SAP is renowned for its enterprise ERP solutions catering to large corporations, it also offers ERP software tailored for small and mid-sized businesses.
What is ERP (Enterprise resource planning SAP)
Pre configured ERP enterprise resource planning SAP consists of multiple integrated modules within a single unified database. ERP enterprise resource planning SAP modules collaborate to manage and streamline business processes and transactions across various organizational functions.
Modules of ERP Enterprise Resource Planning SAP
SAP ERP system modules are categorized into functional and technical modules. For a comprehensive overview, you can find them on the SAP website or contact a Enterprise resource planning solution companies for an overview. Below are the functional and technical modules.
Functional Modules
Pre configured ERP enterprise resource planning SAP functional modules are designed to manage transactions and reports within specific business areas.
Functional ERP enterprise resource planning SAP modules:
- Project System (SAP PS)
- Financial Accounting and Controlling (SAP FICO)
- Plant Maintenance (SAP PM)
- Human Capital Management (SAP HCM)
- Production Planning (SAP PP)
- Material Management (SAP MM)
- Financial Supply Chain Management (SAP FSCM)
- Sales and Distribution (SAP SD)
- Quality Management (SAP QM)
- Investment Management (SAP IM)
Technical Modules
Pre configured ERP Enterprise resource planning solution companies that offer technical modules handle technical processes within the information system and ERP functions. These include offering an advanced programming language (ABAP) for use with SAP, system administration, and evaluating and maintaining enterprise resource planning solutions that can be integrated with third-party software.
Technical SAP modules, tools, and platforms include:
- SAP Solution Manager
- SAP NetWeaver (formerly SAP Basis)
- SAP EP (Enterprise Portal)
- SAP PI (Process Integration)
- Advanced Business Application Programming (SAP ABAP)
- SAP Application Server
- Business Technology Platform (SAP BTP)
Enterprise resource planning solution companies also provide AI-driven business analytics and business intelligence (BI) solutions within the SAP Business Technology Platform.
1. SAP Human Capital Management
Enterprise resource planning software companies that provide SAP Human Capital Management module is not limited to human resources personnel management, administration, and payroll processing but also includes treating employees as essential elements of the company.
Features relating to HCM include:
- Employee experience management
- Talent management from recruiting and onboarding to employee training
- Core HR and payroll
- HR analytics and workforce planning
Human Success Factors, a SaaS suite is a Cloud ERP, it offers Enterprise resource planning cloud-based features for managing human experiences. One feature is integrating Qualtrics surveys to understand and track employees’ needs and experiences.
2. SAP Financial Supply Chain Management
Pre configured ERP ERP enterprise resource planning SAP, which has a Financial Supply Chain Management module, transcends the essential elements of the supply chain. It relates to customer risk management assessment functions and considers billing, accounts receivable, and collections.
3. SAP Customer Relationship Management
Enterprise resource planning software companies provide this SAP module as an essential part of SAP. It combines marketing, sales, services, and after-sales to enrich the customer experience.
Here are its prime features:
- Interaction Management
- Customer Management
- Campaign Management
- Loyalty Management
- Sales Management
- Service Management
4. SAP Production Planning
The SAP Production Planning module offered by enterprise resource planning software companies helps plan and execute manufacturing tasks using materials requirements planning (MRP). It manages capacity planning, utilizes hierarchical bills of materials (BOM) from master data for each product and its components, performs master scheduling of resources, and oversees inventory movement.
Production Planning also handles lot size optimization, sequence planning, and exception management as part of its data management capabilities.
5. SAP Material Management
The SAP Material Management module offered by Enterprise resource planning software companies streamlines supply chain logistics, sourcing, and inventory management, covering procurement through purchase requisitions and orders and maintaining master data files, vendor files, and bills of materials. It integrates with the Financial (SAP FI) module for accurate invoice verification and alignment of purchase orders with receipts. Additionally, SAP offers tools like the Supplier Relationship Management (SAP SRM) platform, Warehouse Management System (WMS) for detailed inventory tracking, the Advanced Planner and Optimizer (SAP APO) within SAP HANA S/4 for supply chain management, and Product Lifecycle Management (PLM) software.
The SAP Material Management module handles:
- Supply chain logistics
- Sourcing
- Inventory procurement through purchase requisitions and purchase orders
- Inventory management
- Master data files, vendor files, and bills of materials
Integrates with the Financial (SAP FI) module’s accounts payable for:
- Invoice verification
- Matching purchase orders and receipts
Additional offerings by Enterprise resource planning solution companies:
- Web-based Supplier Relationship Management (SAP SRM) platform
- Warehouse Management System (WMS) add-on for inventory management at the storage bin level
6. SAP Business Intelligence
SAP Business Intelligence is an essential component that lets businesses access and analyze data to make proactive business decisions that impact revenue and growth. It also gives businesses an edge over competitors.
Here are the features of SAP BI:
- Ad-hoc Query and Reporting
- Data Visualization
- Data Dashboarding
- Data Warehousing
- Online Analytical Processing capabilities
7. SAP Project System
SAP’s Project System module is a powerful project management software designed for customer and internal projects, covering capital investment and overhead tasks. It features a structured work breakdown hierarchy (WBS) and robust planning and scheduling tools, including budget allocation and management procedures.
SAP Financial Accounting and Controlling
SAP’s financial management comprises the Financial Accounting (SAP FI) and Controlling (SAP CO) modules, amalgamated under FICO, to seamlessly oversee accounting and planning processes.
SAP Financial Accounting
This module encompasses various sub-modules, including accounts receivable, bank accounting, asset accounting, accounts payable, travel management, fund accounting, general ledger accounting, and legal consolidation.
SAP Controlling
SAP CO facilitates comprehensive enterprise control by facilitating detailed planning across different account categories within each cost and profit center. It enables analysis of actual costs versus budget variances alongside cost and profit center accounting. CO functionalities extend to profitability analysis by market segment, product cost and pricing analysis, activity-based accounting, and internal orders with precise cost tracking.
Moreover, SAP offers a dedicated Treasury and Risk Management solution that seamlessly integrates with the S/4HANA SAP system for enhanced financial management.
8. SAP Plant Maintenance
SAP’s Plant Maintenance module is utilized to maintain plants. SAP offers several advanced technologies, including IoT (Internet of Things), that use sensors connected to plant equipment and software.
SAP Plant Maintenance can be operated with Amazon’s AWS IoT to enable plant maintenance and reduce operational costs.
9. SAP Quality Management
The SAP Quality Management module facilitates quality planning, inspection, and control processes, enabling the creation of quality certificates and notifications for exception handling. Notably, it can be utilized to establish a quality system aligned with ISO 9000 standards.
Integration with various SAP modules such as Materials Management (MM), Sales and Distribution (SD), and Production Planning (PP) enhances Quality Management’s functionality. Additionally, it seamlessly collaborates with cost accounting data within the SAP ERP system.
10. SAP Materials Management
SAP Material Management manages procurement and inventory functions, which are vital for supply chain management and the smooth functioning of everyday operations.
Here are the key features:
- Purchasing Order Management
- Vendor Order Management
- Inventory Management
- Material Requirements Planning
- Goods Movements and Warehouse Management
Wrapping up SAP Modules
Pre configured ERP enterprise resource planning SAP offers a comprehensive suite of modules designed to streamline various aspects of business operations, from project management and financial accounting to supply chain logistics and quality management. These modules offered by Enterprise resource planning software companies enhance organizational efficiency and provide a robust framework for businesses to adapt and thrive in today’s dynamic market landscape.