Question

Answer in about one page

Describe the major SAP ERP modules, their functionality and the intra-company and inter-company processes they support. Provide specific examples of how these modules are used.

Answer 1

SAP ERP Modules.

Sap is German Software that helps to manage business Activities like Customer Relations. Sap ERP system comprises of integrated modules, which cover every single aspect of business management virtually. ERP software allows easy global integration by eliminating barriers of currency exchange rates, language, and culture. These software’s Provides real-time information and create a more efficient work environment for employee.

There are 2 Types of SAP ERP system Modules.

1. Functional Modules.
2. Technical Modules.

1. Functional Modules

SAP functional is responsible client interactions, requirement gathering, design, writing functional docs (like Specification docs, test scripts, user manuals etc.), functional testing and support on functional aspects. It also includes config changes in the system.

1. Human Resource Management (SAP HRM), also known as Human Resource (HR)

SAP HR (Human Resource management) also known as “Human Capital Management” (HCM) and it is an important module in ERP SAP systems that supports all the process of human resource management in the enterprise.

2. Production Planning (SAP PP)

SAP Production Planning is one of the key modules in ERP and deals with planning processes, such as capacity planning, material planning, execution of production order, bill of material and goods movement

. 3. Material Management (SAP MM)

  SAP MM (Materials Management) is a module in SAP ERP Central Component (ECC) that provides companies with materials, inventory and warehouse management capabilities.One of the critical modules in SAP ECC, SAP MM is part of SAP ECC's logistics function and plays a vital role in a manufacturer's supply chain.

4. Financial Supply Chain Management (SAP FSCM)

Financial Supply Chain Management (FSCM) in simple terms means managing demand and supply of cash/cash equivalents. SAP has come out with SAP FSCM functionality or suite of applications to manage this more effectively and efficiently thus helping companies to manage the costs associated with this process better. In this posting we will look at what are the features and functionalities available in SAP FSCM and how it can be leveraged better for the benefit of business.

. 5. Sales and Distribution (SAP SD)

SAP Sales and Distribution is one of the key components of SAP ERP system and is used to manage shipping, billing, selling and transportation of products and services in an organization.SAP Sales and Distribution module is a part of SAP Logistics module that manages customer relationship starting from raising a quotation to sales order and billing of the product or service. This module is closely integrated with other modules like SAP Material Management and PP.

6. Project System (SAP PS)

Project System (PS) is one of the key modules of SAP to perform project and portfolio management. It helps you to manage the project life cycle starting from structuring to planning, execution, until the project completion.

7. Financial Accounting and Controlling (SAP FICO)

  SAP FICO is the Finance and Cost controlling module in SAP ERP where FI stands for Financial Accounting and CO stands for Controlling. SAP FICO module is very robust and covers almost all business process encountered in various industries. It is one of the very important and widely implemented modules in SAP.

8. Plant Maintenance (SAP PM)

  SAP Plant Maintenance (SAP PM) is a software product that manages all maintenance activities in an organization. Plant Maintenance module consists of key activities to include inspection, notifications, corrective and preventive maintenance, repairs, and other measures to maintain an ideal technical system.

  9. Quality Management (SAP QM)

  SAP Quality Management is a part of SAP R/3 system and is integrated with other SAP modules like SAP Material Management (MM), Production Planning (PP), and Plant Maintenance (PM). QM is an integral part of logistic management and it is used to perform quality functions such as quality planning, quality assurance, and quality control, at various stages such as incoming material stage, in-process manufacturing process stage, and after production as well.

2.Technical SAP ERP Modules

SAP technical is responsible for the build. Uses ABAP or OOABAP or JAVA languages to write the code as specified by the SAP functional. Usually deals with areas like workflows, UI, integration, reports and so on.

1. SAP Basis

  SAP Basis is the SAP version of system administration. SAP Basis administrators are responsible for making sure that the SAP application server and applications are installed and configured properly; they also maintain the whole landscape and its smooth operation.

2. SAP Security

SAP security is a technical module that works within SAP systems to allow access where it's needed and prevent access where it's not. Establishing good internal security and access processes is a vital part of helping ensure your SAP system is protected and will function well.

3. Advanced Business Application Programming (SAP ABAP)

ABAP is a programming language that runs in the SAP ABAP runtime environment, created and used by SAP for the development of application programs including Reports, Module Pool Programming, Interfaces, Forms, Data conversions, User Exits & BADI.

All of R/3’s applications and even parts of its basis system were developed in ABAP. ABAP is an event- driven programming language. User actions and system events control the execution of an application. ABAP is also called ABAP/4. The “4” in ABAP/4 stands for “Fourth Generation Language” or 4GL.

Example: Boss’s need various reports to make decision hence SAP offer a large number of predefined reports. But in case, exiting report is not able to fulfill requirement then new report is to be developed. Report can be developed either by copying existing code and editing or by developing entirely new codes.

4. High Performance Analytic Appliance (SAP HANA)

SAP HANA is another initiative from SAP for high performance real time database data processing. In SAP HANA, data resides in RAM than the traditional physical disk storage. So the time taken to process even the large amount of data is extremely low. This technology is known as in-memory computing (data resides in memory for computing)

5. SAP NetWeaver

SAP NetWeaver is a technology platform that allows organizations to integrate data, business processes, elements and more from a variety of sources into unified SAP environments. SAP NetWeaver forms the technical foundation for a large number of SAP application landscapes.

Example: consider an e-commerce company using SAP applications. Customer can order product online (website). Website might be based on JAVA application. Company is using SAP to streamline internal business process and JAVA is being used for website. Hence data needs to be exchanged between both java server and SAP server. Here the challenge is integration of various applications/ servers. This module overcomes the challenge by bringing all application/ servers on a common technology platform and hence called NET WEAVER.

6. Information Systems Management (SAP IS)

Management Information Systems (MIS) is an organized integration of hardware and software technologies, data, processes, and human elements designed to produce accurate and useful information for decision-making purposes.

7. Customer Relationship Management (SAP CRM Technical module)

SAP CRM is part of SAP ERP (Enterprise Resource Planning) business suite and is used to implement customize business processes related to Customer Relationship management CRM and to integrate with SAP and non–SAP systems. SAP CRM allows an organization to achieve customer satisfaction by meeting the service expectation and providing products required by customers.

8. Exchange Infrastructure (SAP XI)

SAP Exchange Infrastructure (SAP XI) is SAP's enterprise application integration (EAI) software, a component of the NetWeaver product group used to facilitate the exchange of information among a company's internal software and systems and those of external parties. Like other NetWeaver components, SAP XI is compatible with software products of other companies.

9. SAP Solution Manager

It provides tools, methods, and process management content that can be used during preparation of business blueprint, configuration, and implementation. Using SAP Solman you can ensure that SAP solution environment is operating at its maximum potential with minimum cost. SAP Solman provides integration tools for SAP BASIS Administrators to manage underlying infrastructure and application and business processes. It reduces the amount of effort required to manage the centralized SAP and nonSAP systems. In a distributed environment, SAP Solution Manager is managing system and SAP applications like- ECC, BI, and Customer Relationship module CRM and also covers the non-SAP system in solution life cycle.