Question

1. Identify and explain of the five main modules used in SAP software

Answer 1

The five main SAP modules are

a. FICO (Financials and Controlling) module

b. MM (Materials Management) module

c. SD (Sales & Distribution)

d. HR (Human esources),

e. PP (Production Planning) module

a. FICO (Financials and Controlling) module:

SAP FI is deals in managing financial transactions within enterprises. This financial accounting module helps employees to manage data involved in any financial and business transactions in a unified system. This module functions very well for reporting requirements.SAP implementation helps in consolidating data for diverse business transactions and legal requirements. Financial Accounting module helps one to get the real-time financial position of an enterprise in the market.

SAP CO module is another important SAP modules offered to enterprises. Controlling includes managing and configuring master data that covers cost elements, cost centers, profit centers, internal orders, and functional area, and so on.The controlling module enables one to plan, track, perform, and report about costs.

b. MM (Materials Management):

SAP MM manages materials required, processed, and produced in enterprises. Different types of procurement processes are managed with this system. Some of the popular sub-components in SAP MM module are vendor master data, consumption-based planning, purchasing, inventory management, invoice verification, and so on.

c.SD (Sales & Distribution):

SAP SD modules deal in managing all transactions ranging from inquiries, proposals, quotations, pricing, and more.The sales and distribution module helps in inventory control and management.Some of the sub-components of the SAP SD module are master data, sales support, sales, shipping and transportation, billing, credit management, sales information system, and so on.

d. HR (Human resources): SAP human resource management (HR) module is also called as Human Capital Management (HCM). It is one of the important module of SAP systems as it plays an important role in supporting all the business scenarios of human resources of an organization. It deals with the payroll related components. SAP Payroll system also calculates the gross pay and the net pay. It consists of payments for each employee and deductions made during a payroll period.

e. PP (Production Planning): SAP PP module is an important module that includes software designed specifically for production planning and management. This module also consists of master data, system configuration, and transactions in order to accomplish the plan procedure for production. SAP PP module collaborate with master data, sales, and operations planning, distribution resource planning, material requirements planning, Kanban, product cost planning, and so on.